Transrail Lighting is a prominent Indian engineering, procurement, and construction (EPC) company with integrated manufacturing capabilities for lattice structures, conductors, and monopoles. With over 40 years of experience, Transrail Lighting is a trusted partner in providing turnkey solutions in power transmission, distribution, substations, civil construction, poles and lighting, and railways.

The Book Built Issue for the Transrail Lighting IPO seeks to raise ₹838.91 Crores, with a fresh issue of ₹400.00 Crores and an offer for sale (OFS) of ₹438.91 Crores. The IPO price band is set between ₹410 and ₹432 per share, which positions the company's market capitalization at ₹5,799.86 Crores at the upper price band. The lot size for retail investors is 34 shares, with a minimum investment of ₹14,688. High-Net-Worth Individuals (HNIs) need to invest for a minimum of 14 lots (476 shares), totaling ₹2,05,632.

The subscription period for the Transrail Lighting IPO will begin on December 19, 2024 and end on December 23, 2024. The allotment date is scheduled for December 23, 2024, and the shares are expected to be listed on both BSE and NSE by December 27, 2024.

Grey Market Premium (GMP) and Subscription Status

As of December 17, 2024, the Grey Market Premium (GMP) for Transrail Lighting IPO stands at ₹176, indicating a potential listing gain of 40.73%. The GMP is based on the company’s financial performance and demand-supply dynamics, which can fluctuate until the listing. Investors should keep in mind that the GMP is an informal market indicator and should not be used as a sole basis for investment decisions.

IPO Allotment and Subscription Status

Investors can track the live subscription status of the IPO starting from December 19, 2024. The allotment is expected to be finalized on December 23, 2024, and investors can check the allotment status on the registrar’s website.

Financial Performance and Investment Metrics

Transrail Lighting’s financial performance for FY2024 is robust, with revenues of ₹41,299.99 Million, up from ₹31,720.34 Million in FY2023 and ₹23,571.99 Million in FY2022. The EBITDA for FY2024 stood at ₹5,310.33 Million, showing a significant increase from ₹3,138.14 Million in FY2023 and ₹2,128.52 Million in FY2022. The Profit After Tax (PAT) for FY2024 is ₹2,332.09 Million, marking solid profitability growth over previous years.

The company is issuing shares at a pre-issue EPS of ₹19.59 and a post-issue EPS of ₹17.37, with a pre-issue P/E ratio of 22.05x and a post-issue P/E ratio of 24.87x, which is favorable compared to the industry’s P/E ratio of 55.5x. The company’s Return on Capital Employed (ROCE) for FY2024 is 24.33%, and its Return on Equity (RoE) stands at 24.41%, highlighting strong returns on capital and equity.

Investment Recommendation

Given the strong financials, competitive pricing of the IPO, and the GMP trend showing potential listing gains of 40.73%, we recommend risky investors to apply for the Transrail Lighting IPO for listing gains or consider it for long-term investment. With the company’s longstanding market position and continued expansion in the power transmission, distribution, and construction sectors, Transrail Lighting presents a promising investment opportunity.

The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
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