Upcoming IPO: Transrail Lighting IPO sets price band at ₹410-432 per share; check issue details, key dates, more | Stock Market News

Transrail Lighting IPO price band: The Transrail Lighting Limited IPO price band has been fixed in the range of ₹410 to ₹432 per equity share of the face value of ₹2. The Transrail Lighting IPO date of subscription is scheduled for Thursday, December 19, and will close on Monday, December 23. The allocation to anchor investors for the Transrail Lighting IPO is scheduled to take place on Wednesday, December 18.

The floor price and the cap price are 205 times and 216 times the face value of the equity shares, respectively. The price to earnings ratio based on diluted EPS for fiscal 2024 at the upper end of the price band is 22.05 times as compared to the average industry peer group PE ratio of 55.05 times. The Transrail Lighting IPO lot size is 65 equity shares and in multiples of 34 equity shares thereafter.

Transrail Lighting IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee reservation portion has been reserved equity shares aggregating up to ₹190 million.

Tentatively, Transrail Lighting IPO basis of allotment of shares will be finalised on Tuesday, December 24, and the company will initiate refunds on Thursday, December 26, while the shares will be credited to the demat account of allottees on the same day following refund. Transrail Lighting share price is likely to be listed on BSE and NSE on Friday, December 27.

The promoters of the company include Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma.

Transrail Lighting is an EPC (engineering, procurement, and construction) company based in India. The company mainly specializes in the power transmission and distribution sector, as well as in integrated manufacturing of lattice structures, conductors, and monopoles. With a history spanning four decades, the firm offers comprehensive turnkey solutions in the global power transmission and distribution industry and has built a reputation as a reliable partner over the years.

The company operates in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, and Nicaragua, providing either turnkey EPC services or supply projects. As of June 30, 2024, Transrail Lighting has completed the EPC of 34,654 circuit kilometers (CKM) of transmission lines and 30,000 CKM of distribution lines, both domestically and internationally. The firm offers EPC services for substations up to 765 kilovolts.

As per the red herring prospectus (RHP), the company’s listed peers are KEC International Ltd (with a P/E of 91.95), Kalpataru Projects International Ltd (with a P/E of 36.72), Skipper Ltd (with a P/E of 75.97), Patel Engineering Ltd (with a P/E of 15.57), and Bajel Projects Ltd (with a P/E of 702.97).

The company has demonstrated significant financial growth. Its net profit surged to ₹233.2 crore in FY24, more than doubling from ₹107.6 crore in FY23, while revenue increased by 29.3% to ₹4,076.5 crore, up from ₹3,152.2 crore in the prior year. For the quarter that ended in June 2024, Transrail reported a net profit of ₹51.7 crore with revenue reaching ₹915.8 crore.

Transrail Lighting IPO details

The initial public offering (IPO) includes a new equity issuance of ₹400 crore along with an offer-for-sale (OFS) of 1.01 crore shares by the promoter Ajanma Holdings.

At the top end of the price range, the OFS is estimated at ₹439 crore, bringing the total size of the issue to roughly ₹839 crore and positioning the company’s market capitalization at about ₹5,800 crore. The funds raised from the new issue will be used to address additional working capital needs, finance capital expenditures, and assist with general corporate activities.

Inga Ventures Pvt Ltd, Axis Capital Limited, HDFC Bank Limited, and IDBI Capital Market Services Limited are the lead managers responsible for running the books for the Transrail Lighting IPO, whereas Link Intime India Private Ltd serves as the registrar for this offering.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.