Transrail Lighting IPO listing today on BSE and NSE: strong debut expected; should you buy, sell or hold?

Engineering and construction company Transrail Lighting raised Rs 839 crore through its IPO, which was subscribed 81 times.

Transrail Lighting Ltd shares are set to debut on the NSE and BSE today at 10 am, with strong listing gains anticipated following the IPO’s robust 81 times subscription. Analysts remain positive on the company’s growth potential and market position, recommending a long-term hold for investors who were allotted shares.

Engineering and construction company Transrail Lighting raised Rs 839 crore through its initial public offering, which closed on December 23. The IPO, priced at Rs 410-432 per share, included a fresh issue of Rs 400 crore and an offer-for-sale of 1.01 crore shares by promoter Ajanma Holdings. The proceeds from the fresh issue will be used for working capital requirements, capital expenditure, and general corporate purposes.

Transrail Lighting listing expectations: Issue fairly priced

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, said that Transrail Lighting’s order book of Rs 10,213 crore (2.5 times FY24 revenue) provides strong business visibility. "At the upper price band, the stock is valued at 24.8x its FY24 EPS with a market cap-to-sales ratio of 1.4. The issue is fairly priced, and investors should hold shares post-listing for long-term gains," he said.

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Sagar Shetty, Research Analyst at StoxBox, said the company’s diversification plans and international presence offers mid- to long-term opportunities. "With operations in 58 countries and plans to expand into allied infrastructure sectors and the solar EPC industry, Transrail Lighting is well-positioned to capitalise on emerging opportunities. Investors should remain invested for the medium to long term," he said.

Transrail Lighting financial performance and growth outlook

Transrail Lighting’s robust order book, combined with its integrated manufacturing capabilities for lattice structures, conductors, and monopoles, ensures stable revenue growth. The company is strategically expanding into new markets and product lines, supported by growing demand for power and government initiatives in the transmission and distribution sector. Analysts expect the stock to list at a premium of 39-44 percent over its upper price band, driven by strong demand and positive market sentiment.

Analyst views

Analysts recommend that conservative investors consider booking partial profits if listing gains exceed expectations. However, long-term investors are advised to hold shares to benefit from Transrail Lighting’s strong market presence, diversification plans, and growth potential in the power transmission sector. Non-allottees may explore buying opportunities on dips post-listing.

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