Transrail Lighting IPO Fully Subscribed On Day 1; Check GMP, Price Band And More

Transrail Lighting Ltd.'s Rs 838.91-crore initial public offering has been fully subscribed at 2.07 times on day one of bidding on Thursday.

The grey market premium for the Transrail Lighting IPO stood at Rs 177 as of 3:59 p.m., on Thursday. This puts the estimated listing price at Rs 609, which is 40.97% higher than the IPO price.

The EPC company, active in power transmission and distribution business, will offer fresh shares, along with a promoter—Ajanma Holdings Pvt.—offloading shares through the maiden public offer.

The company has already carried out a pre-IPO placement worth Rs 50 crore to Volrado Venture Partners Fund IV Gamma, Shyamsundar B. Asawa, Saurabh Sanjay Agrawal, and Divyam Sanjay Agrawal, at a price of Rs 484 per share.

• Issue opens: Dec. 19.

• Issue closes: Dec. 23.

• Anchor book opened: Dec. 18.

• Price band: Rs 410 to Rs 432.

• Fresh issue: Shares worth Rs 400 crore.

• Offer for sale: Rs 438.91 crore (at cap price).

• Employee reserved portion: Shares worth Rs 19 crore.

• Total offer size: Rs 838.91 crore.

• Minimum bid quantity: 34 shares.

The Mumbai-based company will garner Rs 400 crore from the fresh issue, while Rs 438.91 crore will go to the selling promoter. The net proceeds from the fresh issue, excluding the Rs 50 crore pre-IPO placement, will be used to fund incremental working capital requirements and further capital expenditure.

The company will utilise Rs 250 crore raised from the net proceeds and pre-IPO placement towards its working capital requirements, of which Rs 217.02 crore will be deployed by fiscal ending March 2025.

Another Rs 90.73 crore has been reserved for capex spends, all of which will be invested in the current financial year.

The company clocked revenue from operations at Rs 896.90 crore at the end of quarter ended June 2024, while net profit stood at Rs 51.74 crore. Earnings per share for the period stood at Rs 4.17.

Cash and cash equivalents on the company's books stood at Rs 88.33 crore.

Transrail Lighting is an engineering, procurement and construction company, primarily focused on transmission and distribution business. It also runs intrated manufacturing facilities for lattice structures, conductors, and monopoles. The company offers solutions to global players in the sector on a turnkey basis.

In its four decades, Transrail has completed 200 projects and is currently present in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, Nicaragua, etc., including turnkey EPCs or supply projects.

As of June 2024, the company has undertaken EPC projects spanning 34,654 circuit kilometers transmission lines and 30,000 CKM distribution lines.

The Indian market accounted for Rs 449.46 crore of its revenue in the June quarter, while the remaining Rs 447.44 crore came from abroad.

Transrail's unexecuted order book, as of June 2024 stood at Rs 10,213.07 crore, after it almost doubled to Rs 10,100.47 crore in March 2024 from Rs 5,907.59 crore two years ago.

The IPO has been subscribed 2.07 times as of 5:00 p.m. on Thursday.

• Qualified institutional buyers: 0.78 times or 78%.

• Non-institutional investors: 2.10 times.

• Retail investors: 2.87 times.

• Employee reserve: 0.64 times or 64%.

The grey market premium for the Transrail Lighting IPO stood at Rs 177 as of 3:59 p.m., on Thursday. This puts the estimated listing price at Rs 609, which is 40.97% higher than the IPO price.

GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.