Transrail Lighting IPO closes: Issue subscribed 80.8 times; check listing date and GMP

Transrail Lighting IPO

Engineering and construction company Transrail Lighting has closed the subscription for its Rs 839-crore initial public offering on December 23. It recorded the third-highest subscription numbers amongst IPOs closed today, after Mamata Machinery and DAM Capital Advisors. Sanathan Textiles and Concord Enviro Systems were the other two public issues, closing today.

The company will finalise the basis of the allotment of IPO shares by December 24. Investors can start trading in its shares on the BSE and NSE, effective December 27.

The public issue was subscribed 80.80 times during December 19-23, with investors buying 112.44 crore equity shares against the offer size of 1.39 crore shares, the subscription data on the exchanges showed.

Qualified institutional buyers showed strong interest in the issue, bidding 201.06 times their allotted quota, followed by non-institutional and retail investors who have bought 76.41 times and 22.07 times their reserved portion. The part set aside for employees was subscribed 4.07 times.

Transrail Lighting IPO shares were available at more than 40 percent premium over the upper price band in the grey market, according to market observers. The grey market is an unofficial market for trading in IPO shares till the listing.

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The IPO comprised of fresh issuance of equity shares worth Rs 400 crore and an offer-for-sale of 1.01 crore shares worth Rs 438.9 crore by promoter Ajanma Holdings. The price band for the offer was Rs 410-432 per share.

The company that does engineering, procurement and construction (EPC) of power transmission and distribution lines will utilise fresh issue proceeds for working capital requirements, capital expenditure, and general corporate purposes. It competes with listed entities like KEC International, Kalpataru Projects International, Skipper, Patel Engineering, and Bajel Projects.

With a footprint in 58 countries, Mumbai-based Transrail Lighting has undertaken an EPC of 34,654 circuit kilometers of transmission lines and 30,000 CKM distribution lines. Further, it provides EPC services in relation to substations up to 765 kilovolts.

Its unexecuted order book has almost doubled to Rs 10,100.5 crore in FY24, from Rs 5,907.6 crore in FY22. Further, as of June 2024, its confirmed order book amounted to Rs 10,213 crore.