Transrail Lighting IPO : Date, Price, GMP And Details

Transrail Lighting IPO - Complete Overview 

Transrail Lighting IPO a Mainboard IPO is a book-built issue of Rs.838.91 Cr (1,94,19,259 Shares) by Transrail Lighting Limited which was founded in February 2008, Transrail Lighting Limited is an engineering and construction company that specializes in power transmission and distribution, as well as manufacturing lattice structures, conductors, and monopoles.

The company undertakes the following services:

• Provision of supply, engineering, procurement, and construction of transmission lines and distribution lines.

• EPC services in civil construction including design concerning bridges, tunnels, elevated roads, and cooling towers.

• Manufacturing and service providers in the poles and lighting segment: supply, install, and test.

• Also provide railway services, such as overhead electrification, signaling, telecommunication, earthworks, and track linking.

Having done so since its inception, the company has completed more than 200 projects in power transmission and distribution. It has a presence in around 58 countries including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, and Nicaragua in turnkey EPCs and supply projects.

As of June 30, 2024, the company completed the EPC of 34,654 CKM transmission lines and 30,000 CKM distribution lines, both nationally and internationally.

The company has presently four manufacturing units as of December 2024. The first is in Vadodara Gujrat, the second in Deoli Maharashtra, and the third and fourth in Silvassa Dadra and Nagar Haveli respectively. 

As of June 30, 2024, the total supplied by the company includes 1.3 MMT of towers, 1,94,534 km of conductors, and 4,58,705 poles.

This new IPO is to be launched on 19 December 2024, and the initial public offering of this upcoming IPO will end on 23 December 2024.

Transrail Lighting IPO Details

The Rs.838.91 crore Transrail IPO comprises a fresh issue of 0.93 Cr Shares (Rs.400 Cr) and an offer for sale (OFS) of 1.02 Cr Shares (Rs.438.91 Cr). The IPO listing date is on December 27, 2024. Transrail Lighting IPO price is Rs.410 to Rs.432.

If you want to apply for the IPO, Click Here. to open a Demat Account.

Company Financial

The company’s revenue grew by 30.2% and PAT increased by 116.8% between FYs ended 31 March 2024 and 31 March 2023.
(Amount in Crore)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Geography-wise Revenue Bifurcation

(Amount in millions)

 

Verticals-wise Revenue Bifurcation

(Amount in millions)

 

The Objective of the Issue

• Financing the company's working capital requirements incrementally.

• Funding the company's capital expenditures.

• General Corporate Purposes.

 

Peers of Transrail Lighting Limited

 

Evaluation

The Transrail IPO price band is between Rs.410 to Rs.432  for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.19.59 from the last year, the resulting P/E ratio is  22.05x. 

Considering the weighted EPS of Rs.14.88 for the last three years, the P/E ratio is 29.03x

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 55.05x.

In simple words, the P/E ratio of this IPO (22.05x), compared with the industry’s average P/E of 55.05x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths    

• A robust and varied order book.

• Four manufacturing plants were established.

• A track record of expansion and a well-established presence in the power transmission and distribution industry thanks to strong execution and implementation abilities.

 

IPO’s Weaknesses 

• Market-related risk factors involve variability in factors like interest rates relating to discounts or other financial-related variables that can affect market balance sheets and the company's defined-benefit obligations.

• Price Volatility for Commodities: The company incurs significant operational costs because of price fluctuations of core inputs such as steel, aluminum, and zinc. The profitability is affected by a hedging process that does not guarantee protection against all price volatility.

• Interest Rate Risks: Fluctuations in the current interest rate level in the market can affect fair values or future cash flows of financial instruments, more so debts bearing floating interest rates.

• Foreign Currency Exposures: For operations with revenue or expenses denominated in foreign currency, the company might be at risk concerning foreign exchange fluctuations impacting its financial performance and cash flows.

• Safety and Operational Hazards: Exposure to these chemicals and plant operations while handling hazardous raw materials and dangerous equipment poses various interactable risks like explosions, fires, and mechanical failures, resulting in injury, death, or damage to the environment.

 

 

Transrail Lighting IPO GMP

Transrail Lighting IPO GMP today has not started yet as of 12 December 2024.

Transrail IPO Timetable (Tentative)

The IPO date is from 19 December to 23 December, with IPO allotment on 24 December, and refund initiation on 26 December. The IPO listing date is on 27 December 2024.

 

IPO Other Details 

The IPO with a face value of Rs.2 per Share offers a total issue size 1,94,19,259 Shares (Rs.838.91 Cr) and it will be listed at BSE and NSE.

Transrail Lighting IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (34 Shares) amounting to Rs.14,688 and 13 Lots (442 Shares) amounting to Rs.1,90,944 respectively, while for HNI investors, the minimum Lot is 14 (476 Shares) amounting to Rs.2,05,632.

IPO Reservation

Promoters and Management of Transrail Lighting Ltd. 

• Ajanma Holdings Private Limited

• Digambar Chunnilalbagde

• Sanjay Kumar Verma.
  
  

 

IPO Lead Managers

• Inga Ventures Pvt Ltd.

• Axis Capital Limited

• HDFC Bank Limited

• IDBI Capital Market Services Limited
  
  

Dividend Policy

A Dividend of Rs.1.50 per equity share was paid out by the company from 01 July 2024 till the filing of the RHP.

Conclusion

The Transrail Lighting IPO offers compelling investment potential based on its high growth, global presence, and diverse service offerings. While this company hasn't ceased improving continuously with due care, price risk and volatility should be taken into account. The further comparability of its valuation against peers will help the investor make an informed decision.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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