Transrail Lighting sets price band of Rs 410-432 a share for IPO

As of June 2024, Transrail’s order book stood at Rs 10,213 crore, with around 55-60% of revenue expected to come from ongoing projects over the next 12 months.

Transrail Lighting Ltd has set a price band of Rs 410-432 per share for its initial public offering (IPO), which will open for subscription on December 19 and close on December 23. Anchor bidding will begin on December 18. The basis of allotment is scheduled for December 24, with refunds initiated and equity shares credited to demat accounts by December 26. The stock will be listed on exchanges on December 27.

The IPO comprises a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) of 1.01 crore shares by promoter Ajanma Holdings. At the upper price band, the OFS is valued at Rs 439 crore, taking the total issue size to approximately Rs 839 crore and giving the company a market capitalization of around Rs 5,800 crore.

Proceeds from the fresh issue will be utilised to meet incremental working capital needs, fund capital expenditure, and for general corporate purposes.

Promoters currently hold an 84.51% stake in the engineering, procurement, and construction (EPC) company, while the remaining 15.49% is held by public shareholders, including the Asiana Alternative Investment Fund, Canara Bank, and Volrado Venture Partners Fund.

Transrail Lighting focuses primarily on the power transmission and distribution sector and operates manufacturing facilities for lattice structures, conductors, and monopoles. The company has executed over 200 projects across 58 countries, covering 34,654 circuit kilometers (CKM) of transmission lines and 30,000 CKM of distribution lines.

Additionally, the company offers EPC services for substations up to 765 kilovolts and operates in other verticals such as civil construction, poles and lighting, and railways. The power transmission and distribution segment contributed over 80% of the company’s revenue.

Transrail has demonstrated robust financial performance, with net profit more than doubling to Rs 233.2 crore in FY24 from Rs 107.6 crore in the previous year. Revenue grew 29.3% to Rs 4,076.5 crore, up from Rs 3,152.2 crore in FY23. For the three-month period ended June 2024, the company reported a net profit of 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, with around 55-60% of revenue expected to come from ongoing projects over the next 12 months.