Transrail Lighting IPO is a book-built issue worth ₹838.91 crore, comprising a fresh issue of 0.93 crore shares aggregating ₹400 crore and an offer for sale of 1.02 crore shares amounting to ₹438.91 crore. The IPO opens for subscription today, and closes on December 23, 2024. The allotment is expected to be finalised on December 24, 2024, with a tentative listing date on the BSE and NSE set for December 27, 2024.
The price band for the IPO is ₹410 to ₹432 per share. The minimum application lot size is 34 shares, requiring a retail investment of ₹14,688. For sNII investors, the minimum investment is ₹2,05,632 (14 lots), while for bNII investors, it is ₹10,13,472 (69 lots). Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital are the book-running lead managers, with Link Intime India as the registrar for the issue.
Industry Outlook
- Per capita electricity consumption in India increased at a CAGR of 3.5%, from 1,010 kWh in fiscal 2015 to 1,331 kWh in fiscal 2023. Energy requirements grew from 1,069 BUs to 1,512 BUs during the same period, indicating robust growth in demand driven by capacity expansions.
- India plans to invest ₹143 lakh crore in infrastructure development through fiscal 2030, more than double the ₹67 lakh crore spent in the previous 7 years. Of this, ₹36.6 lakh crore will focus on green energy, with significant capital allocation for renewable energy, transmission, and distribution projects.
Transrail Lighting IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The funds will be utilised to support incremental working capital needs, ensuring smooth business operations and financial flexibility.
- Proceeds will be allocated towards capital investments to enhance operational efficiency and expand infrastructure.
- The remaining funds will be allocated towards general corporate purposes.
About Transrail Lighting Limited
Transrail Lighting Limited is a prominent Indian engineering, procurement, and construction (EPC) company with a primary focus on power transmission and distribution. With over 4 decades of experience, the company has built a strong reputation for delivering turnkey solutions in the power sector, both domestically and internationally.
It operates integrated manufacturing facilities for lattice structures, conductors, and monopoles, and has successfully completed over 200 projects across Asia and Africa. The company has a footprint in 58 countries, including Bangladesh, Kenya, and Finland, and has executed 34,654 circuit kilometers (CKM) of transmission lines and 30,000 CKM of distribution lines as of June 2024.
It provides EPC services for substations up to 765 kilovolts and specialises in high voltage (HV) and extra high voltage (EHV) segments. Beyond the power sector, Transrail Lighting has diversified into civil construction, poles and lighting, and railways.
With India’s domestic transmission lines expanding to 485,544 CKM by 2024 and an anticipated ₹3 trillion investment in the sector between 2025 and 2029, the company is well-positioned to capitalise on this growth. Additionally, international opportunities in Africa and Latin America offer significant potential, driven by rising electricity demand and the need for modern grid infrastructure.
How To Check the Allotment Status of the Transrail Lighting IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for the Transrail Lighting IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Transrail Lighting IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Transrail Lighting 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
Transrail Lighting IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares Offered |
56,93,832 (29.34%) |
|
QIB Shares Offered |
37,95,889 (19.56%) |
|
NII (HNI) Shares Offered |
28,46,917 (14.67%) |
|
bNII > ₹10L |
18,97,945 (9.78%) |
|
sNII < ₹10L |
9,48,972 (4.89%) |
|
Retail Shares Offered |
66,42,805 (34.22%) |
|
Employee Shares Offered |
4,29,814 (2.21%) |
|
Total Shares Offered |
1,94,09,257 (100%) |
Category Reservation Detail Table
|
Application Category |
Maximum Bidding Limits |
Bidding at Cut-off Price Allowed |
|
Only RII |
Up to ₹2 Lakhs |
Yes |
|
Only sNII |
₹2 Lakhs to ₹10 Lakhs |
No |
|
Only bNII |
₹10 Lakhs to NII Reservation Portion |
No |
|
Only employee |
Up to ₹5 Lakhs |
Yes |
|
Employee + RII/NII |
|
Yes, for shareholder/RII |
Transrail Lighting IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
34 |
₹14,688 |
|
Retail (Max) |
13 |
442 |
₹1,90,944 |
|
S-HNI (Min) |
14 |
476 |
₹2,05,632 |
|
S-HNI (Max) |
68 |
2,312 |
₹9,98,784 |
|
B-HNI (Min) |
69 |
2,346 |
₹10,13,472 |
Transrail Lighting IPO Promoter Holding
The company is promoted by Ajanma Holdings Private Limited, Digambar Chunnilal Bagde and Sanjay Kumar Verma.
|
Share Holding Pre-Issue |
84.50% |
|
Share Holding Post Issue |
– |
Key Performance Indicators for Transrail Lighting IPO
The market capitalisation of Transrail Lighting IPO is ₹5,799.86 crore as of March 31, 2024. Here are the KPIs for Transrail Lighting IPO:
|
KPI |
Values |
|
ROE |
24.41% |
|
ROCE |
24.33% |
|
Debt/Equity |
0.56 |
|
RoNW |
21.68% |
|
PAT Margin |
5.65 |
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
18.66 |
15.42 |
|
P/E (x) |
23.15 |
28.02 |
Note:
- The Pre-IPO EPS is calculated based on the pre-issue shareholding as of the date of the RHP and the latest FY earnings as of March 31, 2024, available in the RHP.
- The Post-IPO EPS is based on the post-issue shareholding and annualised FY earnings as of June 30, 2024, available in the RHP.
Transrail Lighting IPO Prospectus
Transrail Lighting IPO Registrar and Lead Managers
Transrail Lighting IPO Book Running and Lead Managers
- Inga Ventures Pvt Ltd
- Axis Capital Limited
- Hdfc Bank Limited
- Idbi Capital Market Services Limited
Registrar for Transrail Lighting IPO
Link Intime India Private Ltd
- Contact Number: +91-22-4918 6270
- Email Address: transraillighting.ipo@linkintime.co.in
Website: Transrail Lighting IPO Registrar
Financial Performance of Transrail Lighting IPO
| Particulars | As at and for 3-months period ended June 30, 2024 | For the Financial Year ended March 31, 2024 | For the Financial Year ended March 31, 2023 |
|---|---|---|---|
| Revenue from Operation (in ₹ million) | 8,969.03 | 40,092.30 | 30,861.37 |
| Profit After Tax (PAT) (in ₹ million) | 517.44 | 2,332.05 | 1,075.68 |
| Net Worth (in ₹ million) | 11,406.53 | 10,758.68 | 7,091.53 |
| Return on Capital Employed (%) | 6.02 | 24.33 | 18.27 |
| EBITDA (in ₹ million) | 1,201.05 | 4,775.58 | 2,939.35 |
| Earnings per equity share (in ₹) | 4.17 | 19.59 | 9.45 |
| Return on Net Worth (RoNW) (%) | 4.54 | 21.68 | 15.17 |
Know before investing
Strengths
9Extensive experience with over 200 power transmission and distribution projects.
Comprehensive execution profile including monopole lines, substations, and underground cabling.
Established global presence with operations in 58 countries across four continents.
Advanced in-house manufacturing with 1.3 million metric tons of towers supplied.
Proven expertise with India's first 1200kV transmission lines and HTLS conductors.
Strong financial growth, with a 32.37% revenue CAGR and robust profitability.
Expanding portfolio in solar EPC and hydro projects for future growth.
Strengthening global presence across Africa, SAARC, Southeast Asia, Latin America, and MENA (Middle East and North Africa) regions.
Expanding pole and lighting business with solar street lights, traffic lights, and architectural illumination.
Risks
9Cancellation, modification, or delay of orders may disrupt business operations.
Long execution periods and cost overruns can affect financial results.
Reliance on government tenders for 70%-82% of revenue exposes risks.
Foreign currency fluctuations can negatively impact profitability and cash flow.
Legal issues tied to past holding companies may harm reputation.
Non-compliance with regulatory bodies could result in penalties and fines.
Pending criminal investigations over the Gomti River Project may affect operations.
Acquisition of GECPL's business amid restructuring poses potential risks to financial stability.
Challenges in fulfilling or arranging bank guarantees could impact cash flow and operations.
Peer Comparison of Transrail Lighting Limited
| Company Name | Total Revenue (₹ in million) | Face Value per Equity Share (₹) | EPS (Basic ) (₹) | RoNW (%) |
|---|---|---|---|---|
| Transrail Lighting Limited | 40,092.30 | 2 | 19.59 | 21.68% |
| KEC International Limited | 1,99,140 | 2 | 13.49 | 8.50% |
| Kalpataru Projects International Limited | 1,96,260 | 2 | 31.76 | 10.00% |
| Skipper Limited | 32,820 | 1 | 7.66 | 9.10% |
| Patel Engineering Limited | 45,440 | 1 | 3.64 | 9.56% |
| Bajel Projects Limited | 11,690 | 2 | 0.37 | 0.80% |
