Transrail Lighting, an engineering and construction company, has attracted good interest from investors including Ashish Kacholia, Shubham Bansal, Vinod Sethi, and Volrado Venture ahead of its IPO launch.
Ajanma Holdings, one of the promoters, sold little more than a percent stake in the company to nine investors.
"Ajanma has transferred 13,43,746 equity shares, representing 1.08 percent of the company's pre-offer paid-up equity share capital, at a price of Rs 484 per share," the company said in a notice published in newspapers on July 25.
As per the intimation from Ajanma to the company on July 23, Ashish Kacholia and Himalaya Finance bought 3.61 lakh shares each worth Rs 17.5 crore in Transrail, while Volrado Venture Partners Fund IV GAMMA picked 3 lakh shares worth Rs 14.52 crore.
Furthermore, Rajasthan Global Securities invested nearly Rs 10 crore for 2.06 lakh shares, and Vinod Sethi purchased nearly Rs 3 crore worth shares. Promoter transferred 20,661 shares each worth nearly Rs 1 crore to Shubham Bansal and Risabh Bansal. Other investors were Samedh Trinity Partners, and Mayvenn Partners.
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Transrail Lighting had filed preliminary papers with the Securities and Exchange Board of India in March this year to raise funds through an initial public offering (IPO). The offer is a mix of a fresh issuance of shares worth Rs 450 crore and an offer-for-sale of 1.01 crore shares by promoter Ajanma Holdings.
As per the IPO papers, promoters hold 86.31 percent shareholding in the company and the rest of shares (13.69 percent) are held by public shareholders.
Promoter Ajanma Holdings owns 85 percent shares in the company, while Asiana Alternative Investment Fund Scheme holds 8.04 percent stake and Canara Bank 1.62 percent.
The engineering, procurement and construction (EPC) company primarily focusses on power transmission and distribution business, and integrated manufacturing facilities for lattice structures, conductors, and monopoles.
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It has presence in all the power transmission and distribution segments and majorly in high voltage (HV) and extra high voltage (EHV) segments. Apart from the same, it also operates in other business verticals, such as, civil construction, poles and lighting, and railways.
The Maharashtra-based company, comparing itself with KEC International, Kalpataru Projects International, Skipper, Bajaj Electricals, and Patel Engineering, may consider a pre-IPO placement amounting to Rs 50 crore, well before the filing red herring prospectus for IPO.
It will spend Rs 250 crore out of the fresh proceeds for its working capital requirements, and Rs 90.9 crore for its capital expenditure. The remaining funds will be used for general corporate purposes.
Transrail is yet to receive the approval from SEBI, for its DRHP.
Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities are the merchant bankers to the issue.
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