Transrail Lighting IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

up to [●] equity shares aggregating up to ₹4,500 million

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About Transrail Lighting Limited

Transrail Lighting Limited is a prominent Indian engineering, procurement, and construction (EPC) company, specialising in the power transmission and distribution sectors. With over four decades of experience, Transrail has earned a reputation as a trusted partner globally, offering comprehensive turnkey solutions.

In the financial year ending March 31, 2023, they achieved remarkable growth, with revenue from operations soaring by 35.1%, outpacing their peers, as reported by the CRISIL Report. This growth underscores their strong position in the industry.

Transrail spans 58 countries, including Bangladesh, Kenya, Tanzania, Nigeria, Poland, and Nicaragua, where it undertakes turnkey EPC projects and supply operations. As of September 30, 2023, Transrail has successfully executed EPC projects covering 33,500 circuit kilometres of transmission lines and 30,000 circuit kilometres of distribution lines, both domestically and internationally. Providing EPC services for substations up to 765 kilovolts (kV), further solidifying their expertise in the field.

Transrail Lighting Limited operates across all segments of power transmission and distribution, with a significant focus on high voltage (HV) and extra high voltage (EHV) segments. In addition to the core power transmission and distribution business, it also operates in other verticals, including civil construction, poles and lighting, and railways.

Industry Outlook:

The rapid expansion of India's power transmission and distribution network presents lucrative opportunities for growth. With significant increases in both domestic transmission and distribution lines over recent years, coupled with estimated investments of around ₹2.30 trillion in transmission and ₹3.00-3.50 trillion in distribution over the next 5 years, the industry outlook appears promising.
Beyond India, there is a substantial need for electricity infrastructure in regions like Africa, Latin America, and the Caribbean. With a considerable portion of the African population lacking access to electricity, there is a pressing demand for the deployment of new transmission and distribution networks. Similarly, power sector investments in Latin America and the Caribbean are expected to rise to meet increasing electricity demand and modernise grid infrastructure.

Transrail Lighting Limited IPO Details

Transrail Lighting Limited IPO Dates

The exact dates are yet to be announced.

Transrail Lighting Limited IPO Price Band

The exact price range is yet to be announced.

Transrail Lighting Limited IPO Lot Size

The exact lot size is not announced yet.

Transrail Lighting Limited IPO Objectives

The company plans to allocate the net proceeds from the issue for the following purposes:

Funding incremental working capital requirements of ₹2,500 million.
Funding company capital expenditure of ₹909.02 million.
General corporate purposes, not exceeding 25% of the gross proceeds from the fresh issue. Specific details will be finalized upon determination of the offer price and updated in the prospectus prior to filing with the RoC(Registrar of Companies).

Peer Details

The following are the listed peers of Transrail Lighting Limited:

KEC International Limited
Kalpataru Projects International Limited
Skipper Limited

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Contact Details of Transrail Lighting Limited IPO

Registered office: 501, A, B, C, E Fortune 2000, Block G Bandra Kurla Complex, Bandra East Mumbai, Maharashtra 400 051 India
Phone: +91 22 6197 9600
E-mail:cs@transraillighting.com

IPO Financials

Particulars	As at September 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operation (in ₹ million)	18,135.31	30,861.37	22,841.42	21,390.86
Profit After Tax (PAT) (in ₹ million)	848.88	1,075.68	647.07	981.81
Cash and Cash Equivalents (in ₹ million)	1,335.20	1,247.14	575.04	891.05
Return on Net Worth (%)	9.17	15.17	10.80	19.47
Net Debt (in ₹ million)	4,745.55	4,802.08	4,116.13	3,400.27
Return on Equity (%)	9.65	15	10.51	19.50
Return on Capital Employed (RoCE) (%)	11.72	18.27	14.94	22.18%
EBITDA(in ₹ million)	2,089.76	2,939.35	2,056.68	2,525.44

Know before investing

Strengths

With over 200 completed projects and extensive experience in transmission lines, substations, and distribution networks, Transrail Lighting Limited demonstrates strong execution capabilities and pre-qualifications in the power sector.
The company boasts well-equipped manufacturing units in Gujarat, Maharashtra, and Dadra and Nagar Haveli, producing a wide range of products including towers, conductors, and poles. These facilities support backward integration, reducing dependence on third-party suppliers.
The company's integrated approach to EPC business includes a team of experienced designers and engineers equipped with leading-edge software. This enables Transrail Lighting Limited to deliver projects efficiently, maintain high safety standards, and capture more value in the EPC value chain.
Transrail Lighting Limited is certified in quality management, environmental management, communication security, and occupational health and safety systems. Strict internal and external inspections ensure timely delivery, competitive pricing, and superior product quality, enhancing customer satisfaction and market reputation.

Risks

Transrail Lighting Limited relies heavily on its order book for future revenue projections. However, projects included in the order book, especially those where the company has secured the lowest bid, may face cancellation, modification, or delays beyond its control. This uncertainty could significantly impact the company's business, reputation, and financial performance.
The company's project management and turnkey contracts involve long execution periods, typically 3 to 5 years, which increase the risk of time and cost overruns. Various factors such as price escalation, funding constraints, and adverse weather conditions can lead to unforeseen increases in costs, affecting the company's financial condition and future prospects.
Transrail Lighting Limited derives a significant portion of its revenue from tenders released by government authorities and public sector undertakings. Any delays or reduction in tenders from these entities could adversely affect the company's business and results of operations. Changes in government policies or budget allocations may further impact the company's prospects in this regard.