The highly anticipated Transrail Lighting IPO is a book-built issue comprising a fresh issue worth ₹400.00 crore and an offer for sale of 1.02 crore shares. The IPO will open for subscription on December 19, 2024, and close on December 23, 2024, with the allotment expected to be finalized on December 24, 2024.
The tentative listing date on the BSE and NSE is set for December 27, 2024. While the price band is yet to be announced, Transrail Lighting’s strong financial performance in 2024 has garnered attention, with reported revenue of ₹4,130 crore compared to ₹3,172.03 crore in 2023 and a profit of ₹233.21 crore, up from ₹107.57 crore in 2023. Investors are encouraged to consider this IPO for long-term growth potential, backed by the company’s robust financials and promising outlook.
Overview of Contents
About Transrail Lighting IPO
Transrail Lighting Limited, incorporated in February 2008, is a leading engineering and construction company specializing in power transmission and distribution. The company is renowned for its expertise in manufacturing lattice structures, conductors, and monopoles, and for offering end-to-end turnkey EPC services. With a strong presence in 58 countries—including Bangladesh, Kenya, Finland, and Poland—Transrail Lighting has successfully completed over 200 power transmission and distribution projects worldwide. As of June 30, 2024, the company has executed the EPC of 34,654 CKM of transmission lines and 30,000 CKM of distribution lines, demonstrating its robust operational capabilities.
Transrail Lighting also provides a wide range of services, including civil construction for bridges, tunnels, and elevated roads, as well as railway services like overhead electrification, signaling, telecommunication, and track linking. The company operates four manufacturing facilities in Vadodara (Gujarat), Deoli (Maharashtra), and two units in Silvassa (Dadra and Nagar Haveli). Its production milestones include supplying 1.3 MMT of towers, 194,534 KM of conductors, and 458,705 poles as of June 30, 2024.
With a diversified order book, established manufacturing units, and a proven track record of effective execution, Transrail Lighting stands as a competitive player in the power transmission and distribution sector. The company employs 1,575 professionals, including 114 in the design and engineering team, and has shown consistent growth in revenue, which rose from ₹2,139.09 crore in 2021 to ₹4,130 crore in 2024. This strong financial performance, coupled with a focus on innovation and global expansion, underscores its reputation as a trusted partner in the industry.
Transrail Lighting IPOÂ Details
| IPO Details | Information |
|---|---|
| IPO Date | December 19, 2024, to December 23, 2024 |
| Listing Date | December 27, 2024 (Tentative) |
| Face Value | ₹2 per share |
| Price Band | ₹410 to ₹432 per share |
| Lot Size | 34 Shares |
| Total Issue Size | 1,94,19,259 shares (aggregating up to ₹838.91 Cr) |
| Fresh Issue | 92,59,259 shares (aggregating up to ₹400.00 Cr) |
| Offer for Sale | 1,01,60,000 shares of ₹2 (aggregating up to ₹438.91 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 12,49,96,767 shares |
| Share Holding Post Issue | 13,42,56,026 shares |
| Minimum Investment Amount | ₹14,688 |
| Company Revenue FY 2024 | ₹4,130 crore |
| Company Profit FY 2024 | ₹233.21 crore |
| Manufacturing Facilities | 4 units: Vadodara (Gujarat), Deoli (Maharashtra), Silvassa (2 units) |
| Presence in Countries | 58 countries including Bangladesh, Kenya, Finland, Poland |
| Employees | 1,575 (as of September 30, 2023) |
| Key Competitive Strengths | Strong Order Book, Established Manufacturing Facilities, Proven Growth in Power Transmission and Distribution |
| DRHP Draft Prospectus: | Click here |
| RHP Draft Prospectus: | Click here |
Transrail Lighting IPO Dates
| Event | Date | Details |
|---|---|---|
| IPO Open Date | Thursday, December 19, 2024 | Investors can start subscribing to the IPO from this date. |
| IPO Close Date | Monday, December 23, 2024 | Last date to apply for the IPO. |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 23, 2024 | Deadline to approve UPI mandates to ensure application validity. |
| Basis of Allotment Finalization | Tuesday, December 24, 2024 | Shares will be allotted to investors as per the subscription. |
| Initiation of Refunds | Thursday, December 26, 2024 | Refunds will be initiated for unsuccessful applications. |
| Credit of Shares to Demat Accounts | Thursday, December 26, 2024 | Shares will be credited to investors' Demat accounts before the listing. |
| Listing Date | Friday, December 27, 2024 | Shares will start trading on BSE and NSE. |
| Application Mode | Online (via UPI), Offline | Investors can apply through UPI-based applications or ASBA via banks. |
Transrail Lighting IPO Market Lot
Here is a breakdown of the application details for retail investors, S-HNIs (Small High Net Worth Individuals), and B-HNIs (Big High Net Worth Individuals), including the number of lots, shares, and corresponding amounts.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 34 | ₹14,688 |
| Retail (Max) | 13 | 442 | ₹1,90,944 |
| S-HNI (Min) | 14 | 476 | ₹2,05,632 |
| S-HNI (Max) | 68 | 2,312 | ₹9,98,784 |
| B-HNI (Min) | 69 | 2,346 | ₹10,13,472 |
Transrail Lighting IPO Reservation Details
The Transrail Lighting IPO has a well-defined reservation structure to ensure fair allocation among various investor categories. Qualified Institutional Buyers (QIBs) are allocated the majority of the issue, while Non-Institutional Investors (NII or HNIs) and Retail Individual Investors (RIIs) have a reserved portion based on SEBI guidelines. Here’s the detailed reservation breakdown:
| Investor Category | Shares Offered | Details |
|---|---|---|
| QIB (Qualified Institutional Buyers) | Not more than 50% of the Net Issue | Includes mutual funds, foreign portfolio investors, banks, and other financial institutions. |
| Retail Investors | Not less than 35% of the Net Issue | Reserved for individual investors applying for shares up to ₹2,00,000. |
| NII (Non-Institutional Investors or HNIs) | Not less than 15% of the Net Issue | For high-net-worth individuals applying for shares above ₹2,00,000. |
Key Notes:
- Oversubscription Handling: In case of oversubscription, shares are allotted proportionately within each category.
- Application Criteria:
- Retail Investors: Applications capped at a maximum value of ₹2,00,000.
- NII (HNI): Applications exceeding ₹2,00,000 qualify under this category.
- QIB Participation: A mandatory 5% of the QIB portion is reserved for mutual funds.
Transrail Lighting IPOÂ Anchor Investors Details
| Details | Information |
|---|---|
| Bid Date | December 18, 2024 |
| Shares Offered | 56,93,832 |
| Anchor Portion Size (In Cr.) | ₹245.97 Cr |
| Anchor Lock-In Period End Date (50% Shares) | January 23, 2025 |
| Anchor Lock-In Period End Date (Remaining Shares) | March 24, 2025 |
Transrail Lighting IPO Promoter Holding
The promoters of Transrail Lighting Limited are Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma. They collectively hold a significant stake in the company, ensuring strong promoter backing and strategic guidance.
Prior to the IPO, the promoters’ shareholding stood at 84.50%, reflecting their substantial control and commitment to the company. Post-issue, the shareholding is expected to decrease, as a portion of the equity will be offered to the public through the IPO. This reduction will enhance the company’s public float and improve liquidity in the stock market.
Transrail Lighting IPO Company Financial Report
The financial performance of Transrail Lighting Limited highlights the company’s strong growth trajectory in revenue and profitability over the past few years. This consistent performance underscores its operational efficiency and strategic focus, making it a compelling choice for investors. Below is a detailed summary of the company’s financials:
| Period Ended | Revenue (₹ in Crores) | Expense (₹ in Crores) | Profit After Tax (₹ in Crores) | Assets (₹ in Crores) |
|---|---|---|---|---|
| 2022 | ₹2,357.20 | ₹2,266.53 | ₹64.71 | ₹2,841.87 |
| 2023 | ₹3,172.03 | ₹3,024.71 | ₹107.57 | ₹3,445.49 |
| 2024 | ₹4,130.00 | ₹3,814.19 | ₹233.21 | ₹4,620.61 |
| June 2024 | ₹929.70 | ₹852.65 | ₹51.74 | ₹4,836.17 |
Key Insights:
- Revenue Growth: The company’s revenue has grown significantly, from ₹2,357.20 crores in 2022 to ₹4,130 crores in 2024, representing a strong CAGR.
- Profitability: Profit after tax has shown robust improvement, rising from ₹64.71 crores in 2022 to ₹233.21 crores in 2024, indicating operational efficiency.
- Asset Base Expansion: The company’s asset base has increased steadily, reaching ₹4,836.17 crores as of June 2024, reflecting investments in infrastructure and capacity building.
- June 2024 Performance: For the quarter ending June 2024, the company maintained a healthy profit margin despite a challenging economic environment.
Transrail Lighting IPO Valuation – FY2024
The valuation metrics of Transrail Lighting Limited provide investors with an overview of the company’s financial health and profitability. These indicators reflect the company’s operational efficiency, growth potential, and ability to generate shareholder value. Below are the detailed valuation metrics for FY2024:
| KPI | Values |
|---|---|
| ROE | 24.41% |
| ROCE | 24.33% |
| EBITDA Margin | 11.71% |
| PAT Margin | 5.65% |
| Debt to Equity Ratio | 0.56 |
| Earning Per Share (EPS) | ₹19.59 (Basic) |
| Price/Earning (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 21.68% |
| Net Asset Value (NAV) | ₹86.79 |
Key Insights:
- Profitability Ratios: With a Return on Equity (ROE) of 24.41% and Return on Net Worth (RoNW) of 21.68%, the company demonstrates strong profitability and efficient use of shareholders’ equity.
- Leverage: A low Debt-to-Equity Ratio of 0.56 highlights the company’s balanced financial structure and manageable leverage levels.
- Operational Efficiency: The EBITDA Margin of 11.71% and PAT Margin of 5.65% signify steady operational performance and profitability.
- Valuation Metrics: With a Net Asset Value (NAV) of ₹86.79 per share and an Earning Per Share (EPS) of ₹19.59, the company provides a solid foundation for evaluating its IPO pricing.
Peer Group Comparison
Comparing Transrail Lighting Limited with its industry peers helps investors assess its standing in terms of financial performance and market valuation. The metrics below provide insights into key competitors in the power transmission and engineering sectors:
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| KEC International Limited (Consolidated) | 13.49 | 91.95 | 8.50% | ₹159 | ₹19,914 Cr. |
| Kalpataru Projects International Limited (Consolidated) | 31.76 | 36.72 | 10.00% | ₹316 | ₹19,626 Cr. |
| Skipper Limited (Consolidated) | 7.66 | 75.97 | 9.10% | ₹84 | ₹3,282 Cr. |
| Patel Engineering Limited (Consolidated) | 3.64 | 15.57 | 9.56% | ₹38 | ₹4,544 Cr. |
| Bajaj Electricals Limited (Standalone) | 0.37 | 702.97 | 0.80% | ₹49 | ₹1,169 Cr. |
Objects of the Issue
- To finance the company’s additional working capital needs.
- To support the company’s capital expenditure plans.
- To address general corporate purposes.
Transrail Lighting IPO Registrar
- Link Intime India Pvt Limited
- Phone: +91 810 811 4949
- Email:Â transraillighting.ipo@linkintime.co.in
- Website:Â www.linkintime.co.in
Company Address
Transrail Lighting Limited
501, A, B, C, E Fortune 2000, Block G,
Bandra Kurla Complex, Bandra East,
Mumbai, Maharashtra 400 051 India
Phone:Â +91 22 6197 9600
Email:Â cs@transraillighting.com
Website:Â www.transrail.in
Conclusion
The Transrail Lighting IPO presents an exciting opportunity for investors, with strong financial growth and a proven track record in the power transmission and distribution sector. With a solid revenue increase and a well-established presence both domestically and internationally, the company is well-positioned for future growth.
The IPO’s strategic objectives, including funding working capital, capital expenditure, and general corporate purposes, further enhance its potential. Investors looking for long-term growth in a growing industry may find this IPO appealing. However, as always, it’s important to carefully evaluate the risks and consult with financial advisors before making investment decisions.
FAQs on Transrail Lighting IPO
When does the Transrail Lighting IPO open and close?
The Transrail Lighting IPO opens on December 19, 2024, and closes on December 23, 2024.
What is the type of issue for Transrail Lighting IPO?
Transrail Lighting IPO is a Book Built Issue.
How much is the company planning to raise through the IPO?
The company aims to raise around ₹838.91 crores through the IPO, which includes a fresh issue of ₹400 crores and an offer for sale of up to 1,01,60,000 equity shares.
What is the face value of Transrail Lighting IPO shares?
The face value of each equity share is ₹2.
What is the price band for Transrail Lighting IPO?
The price band for the IPO is ₹410 to ₹432 per share.
What is the quota allocation for retail investors, QIBs, and HNIs?
- Retail quota: 35%
- QIB (Qualified Institutional Buyers) quota: 50%
- HNI (High Net Worth Individuals) quota: 15%
When will Transrail Lighting IPO shares be listed?
The shares are expected to be listed on BSE and NSE on December 27, 2024.
When is the allotment date for Transrail Lighting IPO?
The allotment of shares is scheduled for December 24, 2024.
What were the company’s financial highlights for 2023 and 2024?
- Revenue: ₹4,130 crores in 2024, compared to ₹3,172.03 crores in 2023.
- Profit: ₹233.21 crores in 2024, compared to ₹107.57 crores in 2023.
Should investors apply for the Transrail Lighting IPO?
Based on the company’s financial performance, the IPO is recommended for long-term investment.