The Transrail Lighting IPO is set to open for bidding on December 19, 2024, offering investors an opportunity to participate in the growth story of a leading engineering and construction company specializing in power transmission and distribution. The IPO seeks to raise ₹838.91 crore through a combination of fresh share issuance and an offer-for-sale (OFS) by the promoter, Ajanma Holdings Pvt Ltd. Here’s a detailed overview of the IPO and its significance.
Key Details of the IPO
| Particulars | Details |
|---|---|
| IPO Dates | December 19-23, 2024 |
| Price Band | ₹410-432 per share |
| Lot Size | Minimum 34 shares and multiples thereafter |
| Issue Size | ₹838.91 crore |
| Fresh Issue | ₹400 crore |
| OFS | 1,01,60,000 shares (₹438.91 crore) |
| Anchor Book Opening | December 18, 2024 |
| Listing Date | To be announced |
| Stock Exchanges | BSE and NSE |
About Transrail Lighting
Incorporated in 2008, Mumbai-based Transrail Lighting is a leading engineering and construction company specializing in:
- Power Transmission and Distribution: Providing turnkey EPC (Engineering, Procurement, and Construction) solutions.
- Manufacturing: Lattice structures, conductors, and monopoles.
The company boasts an extensive track record, having completed:
- 34,654 CKM of transmission lines.
- 30,000 CKM of distribution lines, both domestically and internationally.
Global Presence
Transrail Lighting operates in 58 countries, including:
- Africa: Kenya, Nigeria, Mali, Cameroon.
- Asia: Bangladesh, Tanzania.
- Europe: Finland, Poland.
- Americas: Nicaragua.
Financial Highlights
| Period | Net Profit (₹ crore) | Revenue (₹ crore) |
|---|---|---|
| Q1 FY25 (June 2024) | ₹51.74 | ₹929.70 |
| FY24 (March 2024) | ₹233.21 | ₹4,130.00 |
Transrail Lighting has demonstrated strong financial performance, with consistent revenue growth and profitability.
IPO Objectives
The funds raised from the IPO will be utilized for:
- Working Capital:
- Incremental financing for working capital requirements.
- Capital Expenditure:
- Supporting expansion of manufacturing capabilities and infrastructure.
- General Corporate Purposes:
- Addressing business needs to enhance operational efficiency.
Allocation for Investors
| Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIBs) | 50% |
| Non-Institutional Investors (NIIs) | 15% |
| Retail Investors | 35% |
Why Consider Transrail Lighting IPO?
- Leadership in Power Solutions:
- Proven expertise in power transmission and distribution, with a strong track record of completed projects.
- Global Presence:
- Operations across 58 countries with turnkey EPC capabilities.
- Strong Financials:
- Consistent profitability and revenue growth.
- Growth Potential:
- Focused on expanding manufacturing capabilities and leveraging global demand for power infrastructure.
- Sector Outlook:
- Increasing investments in power infrastructure globally offer long-term growth opportunities.
Important Dates
| Event | Date |
|---|---|
| Anchor Book | December 18, 2024 |
| IPO Opening | December 19, 2024 |
| IPO Closing | December 23, 2024 |
Conclusion
The Transrail Lighting IPO presents a promising investment opportunity in a critical sector with growing global demand. With its strong financial performance, global footprint, and strategic use of IPO proceeds, Transrail Lighting is well-positioned for sustained growth. Potential investors should carefully evaluate the price band, financials, and market dynamics before making their investment decision.
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
