Transrail Lighting Limited IPO Overview
Transrail Lighting Limited, a leading Indian engineering, procurement, and construction (EPC) company specializing in power transmission and distribution, is launching its Initial Public Offering (IPO) to raise funds for expansion and operational needs. The IPO is set to open on December 19, 2024, and will close on December 23, 2024.
IPO Details
- Issue Size: ₹839 crore (Fresh Issue: ₹400 crore; Offer for Sale: ₹439 crore)
- Price Band: ₹410 - ₹432 per share
- Lot Size: Minimum 34 shares (amounting to ₹14,688 at the upper price band)
- IPO Dates:
- Opening Date: December 19, 2024
- Closing Date: December 23, 2024
- Listing Date: December 27, 2024
- Listing Exchange: BSE & NSE
- Allocation:
- 50% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
Company Background
- About the Company: Transrail Lighting Limited is a leading EPC company with over three decades of experience in designing, manufacturing, and constructing power transmission and distribution infrastructure. The company is known for its integrated manufacturing capabilities, producing lattice structures, conductors, and monopoles.
- Key Projects: The company has successfully completed over 200 projects across India, significantly contributing to the country's power infrastructure.
- Regional Presence: Transrail Lighting has a strong presence in local markets, including Uttar Pradesh, where it is registered under GST with operations in Jhansi. Their ongoing projects in the region have been instrumental in electrification efforts, particularly in rural areas.
Financial Highlights
- Revenue from Operations: ₹30,861.37 million (FY 2023)
- Profit After Tax (PAT): ₹1,075.68 million (FY 2023)
- Return on Net Worth: 15.17% (FY 2023)
IPO Objectives
The funds raised through the IPO will be utilized as follows:
- Working Capital Requirements: ₹2,500 million
- Capital Expenditure: ₹909.02 million
- General Corporate Purposes: Not exceeding 25% of gross proceeds
Risks to Consider
- Legal Issues: The company is under investigation by the Central Bureau of Investigation (CBI) related to the Gomti River Project in Uttar Pradesh. Any adverse developments could materially impact operations.
- Capital Requirements: The company has significant working capital and capex needs with long implementation periods, posing operational risks.
- Sectoral Risks: The EPC sector is heavily reliant on government policies, which can introduce regulatory delays and uncertainties for large-scale projects.
Subscription Details
(To be updated with live data during the IPO subscription period.)
- Day 1: To be updated
- Day 2: To be updated
- Day 3 (Final): To be updated
IPO Review & Recommendations
Positives:
- Strong track record in the power transmission and distribution sector.
- Integrated manufacturing capabilities provide a competitive edge.
- Steady financial performance with consistent profitability.
- Key presence in emerging markets like Uttar Pradesh, contributing to rural electrification and infrastructure development.
Negatives:
- Ongoing CBI investigation poses reputational and operational risks.
- High dependency on large-scale projects, which may be affected by regulatory or political changes.
Recommendation:
Investors with a moderate risk appetite may consider subscribing, given the company’s strong fundamentals but with caution regarding ongoing legal issues.
Check IPO Allotment Status
Investors can check the allotment status of the Transrail Lighting Limited IPO by visiting the registrar’s website. Click the link below to access the allotment status page:
Check Transrail Lighting IPO Allotment Status Here (Link to be updated once the IPO registrar’s page is live.)
Regional Insights: Transrail’s Impact in Uttar Pradesh
Transrail Lighting’s extensive projects in Uttar Pradesh have been a cornerstone of the region’s electrification journey. From Jhansi to Gorakhpur, the company has contributed to rural and urban electrification projects. The Gomti River Project, although under scrutiny, has also highlighted the company’s capacity to manage complex infrastructure developments. With this IPO, local investors can support a company that has significantly impacted their region’s economic growth.
Post-Listing Analysis
(To be updated after the listing date.)
- Listing Price: To be updated
- Initial Market Performance: To be updated
- Long-Term Outlook: To be updated
Conclusion
Transrail Lighting Limited’s IPO offers an opportunity to invest in a leading EPC company with a strong history in power transmission and distribution. Its localized impact, particularly in Uttar Pradesh, makes it an attractive option for investors in the region. However, potential investors should carefully weigh the risks associated with ongoing legal investigations and sectoral uncertainties before making a decision.
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