Transrail Lighting Ltd IPO 2024: 10 Key Insights for Smart Investors
Transrail Lighting Ltd, a well-known player in the power transmission and distribution (T&D) space, is set to launch its ₹838.91 crore Initial Public Offering (IPO) from December 19 to December 23, 2024. The company’s strong track record and established presence in both domestic and international markets make it an intriguing investment opportunity for those looking to capitalize on the infrastructure growth in the power sector.
Here are 10 key things you should know before investing in Transrail Lighting Ltd IPO:
What makes Transrail Lighting Ltd a good opportunity?
Transrail Lighting Ltd operates in the power T&D segment and has completed over 200 projects globally. Its services range from EPC (Engineering, Procurement, and Construction) projects to manufacturing lattice structures, conductors, and monopoles.
The company has a footprint in 58 countries, including Bangladesh, Kenya, Finland, and Nigeria. Domestically and internationally, it has undertaken EPC projects for 34,654 CKM (Circuit KM) transmission lines and 30,000 CKM distribution lines. Its strong order book and proven execution capabilities make it a reliable player in the infrastructure and power sector.
What are the IPO dates, price band, and issue size?
Here are the key details of the Transrail Lighting Ltd IPO:
- IPO dates: December 19th – 23rd, 2024
- Listing date: December 27th, 2024
- Price band: ₹410–₹432 per share
- Total issue size: ₹838.91 Cr
- Face value: ₹2 per share
- Listing exchange: BSE, NSE
- Lot size: 34 shares
What is the minimum investment for the IPO?
The minimum investment required to apply for the Transrail Lighting Ltd IPO is ₹13,940, based on the lot size of 34 shares at the lower price band of ₹410 per share. To maximize your chances of allotment, consider applying at the upper price band, which would require ₹14,688 (34 shares at ₹432 per share).
What does the company do?
Transrail Lighting Ltd specializes in providing EPC services and manufacturing solutions for power transmission and distribution projects.
- Services: Includes high-voltage (HV) and extra-high-voltage (EHV) T&D projects, substations up to 765 kV, and manufacturing of lattice structures and monopoles.
- Global presence: Operates in 58 countries across Asia, Africa, and Europe.
- Projects: Over 34,654 CKM of transmission lines and 30,000 CKM of distribution lines completed globally.
The company’s integrated approach and robust execution capabilities position it as a strong player in the T&D segment.
What is the objective of the IPO?
The proceeds from the IPO will be used for:
- Funding incremental working capital requirements.
- Funding capital expenditure for the company’s growth.
- General corporate purposes.
How much is reserved for retail and other investors?
The IPO allocation is divided as follows:
- Qualified Institutional Buyers (QIBs): Up to 50%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 35%
What are the key strengths and risks?
Strengths:
- Established presence in the power T&D segment with over 200 successful projects.
- Diversified order book and strong execution capabilities.
- State-of-the-art manufacturing facilities for lattice structures, conductors, and monopoles.
- Strong in-house design and engineering expertise.
Risks:
- The order book is subject to cancellation, modification, or delays, potentially impacting revenue and profitability.
- Long execution periods in EPC projects may lead to cost overruns and revenue mismatches.
- Heavy reliance on government tenders and public sector contracts, which form a significant portion of the revenue.
What is the financial performance of Transrail Lighting Ltd?
The company has demonstrated consistent financial growth:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | ₹4,620.61 | ₹3,445.49 | ₹2,841.87 |
| Revenue (₹ Cr) | ₹4,009.23 | ₹3,086.14 | ₹2,284.14 |
| Profit After Tax (₹ Cr) | ₹233.21 | ₹107.57 | ₹64.71 |
What is the allotment and listing timeline?
- Basis of allotment: December 24, 2024
- Refund initiation: December 26, 2024
- Shares credited to demat accounts: December 26, 2024
- Listing date: December 27, 2024
Should you invest in Transrail Lighting Ltd IPO?
Transrail Lighting Ltd offers a promising investment opportunity, backed by its established reputation, robust financial growth, and strong project execution capabilities. However, investors must weigh the risks, including dependence on government contracts and potential project delays.
Carefully evaluate your investment goals and risk tolerance before subscribing to this IPO.
