Transrail Lighting IPO - Should You Subscribe? Read Reliance Securities' Analysis

Reliance Securities Report

Transrail Lighting Ltd. will launch its initial public offering on December 19 and the offer closes for subscription on Dec. 23. An EPC company which specializes in the power transmission and distribution business has fixed the price band in the range of Rs 410 to Rs 432 per share.

The minimum order lot for bidding is 34 shares, and then in multiples thereof.

The Rs 838.91-crore IPO comprises of a fresh issue of shares worth Rs 400 crore and an offer-for-sale of 1.01 crore equity shares worth Rs 438.91 crore.

The shares will be listed on both the National Stock Exchange and the BSE on Dec. 27.

Object of the Issue

• Funding capital expenditure and incremental working capital.

• General Corporate purposes.

Strengths

1. Track record of established growth in power transmission and distribution vertical through inhouse designing and engineering.

2. Established manufacturing facilities and strong and diversified order book.

3. Skilled and experienced management team with technical expertise and domain knowledge.

4. Healthy and consistent financial performance.

Our View

Transrail Lighting has a track record of four decades in providing a comprehensive solution on a turnkey basis in power transmission and distribution market with key outperformance projects and a strong track record completing more than 200 projects.

We expect significant growth in the transmission and distribution market by increasing electricity demand, government initiatives, strong thrust on sustainability and rising adoption of smart grid technologies, transmission system plan for integration of over 500 GW RE capacity by 2030.

With a healthy orderbook of international and domestic clients, experienced promoters with strong management team and consistent financial performance, the growth momentum would continue in the coming years. Hence, we recommend a Subscribe to the issue.

Key Risks

1. Time overrun in completion of projects could increase costs and hurt margins.

2. Risks associated with executing foreign projects with respect to any sudden geopolitical crisis.

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.