Regime Change In Bangladesh Not Impacting Our Projects, Says Transrail Lighting CEO Ahead Of IPO Launch

Transrail Lighting Ltd. is gearing up for its initial public offering (IPO) scheduled to open on December 19, 2024. As the company prepares to raise Rs 400 crore, Managing Director & CEO Randeep Narang assures investors that the company’s international projects, including those in Bangladesh, remain secure despite political changes.

Narang stated, “We have very good advances equivalent to the outstanding amount, and we are working with the Asian Development Bank...Bangladesh government. We see our projects progressing on time, and the regime change has not hampered our progress.”

The company's maiden public offer will comprise a fresh issue of shares worth Rs 400 crore and an offer-for-sale of 1.01 crore equity shares, solely offloaded by its promoter Ajanma Holdings Pvt. At the upper limit of the price band, the total offer size stands at Rs 836 crore.

The company will list on BSE and NSE with a tentative listing date of December 27, 2024.

Transrail Lighting has seen significant growth in both its domestic and international markets. Narang shared an encouraging outlook on the company's order book, stating that, as of June 30, 2024, Transrail had an unexecuted order book valued at around Rs 10,000 crore, with an additional Rs 3,200 crore in L1. “Domestic execution will take around 18-24 months, and international projects will take about 24-30 months. We are in a good zone with orders that will cover us,” Narang explained.

The company is also seeing strong demand internationally, with major orders in Bangladesh, Tanzania among other nations. Narang reassured investors that despite political changes in Bangladesh, outstanding payments remain secure.

As the company prepares to tap the IPO market, a significant portion of the proceeds will be directed towards strengthening its operational capabilities. Narang outlined the use of the Rs 400 crore from the fresh issue: Rs 250 crore will be allocated for working capital, Rs 90 crore for expanding manufacturing facilities, and the remainder for general purposes.

Company's Executive Chairman Digambar Bagde emphasised that Transrail’s ability to control material costs and integrate backward into manufacturing has been a key factor in its strong margins. "We have experienced promoters and a strong management team with technical expertise"..."We are among the top four players in the industry,” said Bagde.

Looking ahead, the management is optimistic about domestic market growth. With a projected capex requirement of over Rs 3 lakh crore in the next 2-4 years, Transrail is poised to benefit from investments in India's infrastructure. Bagde noted, “As the domestic market is growing, we will have a very good advantage in building our order book at the domestic level. This will take the company to another growth level because domestic orders have significant growth potential.”

Transrail Lighting’s diversified business portfolio, which spans transmission line construction, backward integrated manufacturing, and international EPC projects, has positioned the company well for long-term growth.