Transrail Lighting, which provides solutions for the power transmission and distribution sector, has filed red herring prospectus with the Registrar of Companies on December 10 as it plans to launch initial public offering for fund raising next week.
The public issue will open for subscription on December 19 and close on December 23, while the anchor book will be launched for a day on December 18, a day prior to the offer opening.
The IPO is a combination of fresh issuance of equity shares worth Rs 400 crore, and an offer-for-sale of 1.01 crore equity shares by promoter Ajanma Holdings.
Promoters own 84.51 percent stake in the engineering, procurement and construction (EPC) company, while 15.49 percent shares are held by public shareholders including Asiana Alternative Investment Fund, Canara Bank, and Volrado Venture Partners Fund.
The company has reserved shares worth Rs 19 crore for its employees, while of the net issue size (excluding employees portion), half of the shares are set aside for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors.
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The total fund raising size via IPO is likely to be around Rs 892 crore if the upper price band finalises around the pre-IPO placement price of Rs 484 per share.
Before the IPO launch, the Mumbai-based company has already raised Rs 50 crore in a pre-IPO placement, from Volrado Venture Partners Fund IV Gamma, Shyamsundar B Asawa, Saurabh Sanjay Agrawal, and Divyam Sanjay Agrawal, at a price of Rs 484 per equity share. Hence, the fresh issue size has been reduced to Rs 400 crore, from Rs 450 crore earlier.
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Transrail Lighting will spend fresh issue proceeds (including pre-IPO placement funds and excluding offer expenses) for its incremental working capital requirements, capital expenditure, and general corporate purposes.
The EPC company primarily focuses on power transmission and distribution business, and manufacturing facilities for lattice structures, conductors, and monopoles. It has completed more than 200 projects in power transmission and distribution vertical with footprint in 58 countries, undertaking EPC of 34,654 circuit kilometers (CKM) transmission lines and 30,000CKM distribution lines.
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It provides EPC services in relation to substations up to 765 kilovolts, while it also operates in other business verticals such as civil construction, poles and lighting, and railways.
The power transmission and distribution business accounted for more than 80 percent of revenue. Overall financial performance has been strong in the past years with net profit more than doubling to Rs 233.2 crore in the year ended March 2024, up from Rs 107.6 crore in the previous year. Revenue during the same period increased by 29.3 percent to Rs 4,076.5 crore, from Rs 3,152.2 crore. Net profit in three-month period ended June 2024 stood at Rs 51.7 crore on revenue of Rs 915.8 crore.
As of June 2024, Transrail's order book stood at Rs 10,213 crore, and it expects revenue of around 55-60 percent from ongoing projects in the next twelve months.
Transrail Lighting will start trading on the BSE and NSE effective December 27. The book running lead managers handling in the public issue are Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities.
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