Transrail Lighting is a leading Indian engineering, procurement, and construction company with over four decades of experience. It specializes in integrated manufacturing of lattice structures, conductors, and monopoles. The company is offering an IPO of ₹838.91 Crores, which includes a Fresh Issue of 92.59 Lakh Shares worth ₹400.00 Crores and an Offer for Sale of 101.6 Lakh Shares totaling ₹438.91 Crores. The IPO will be open from December 19, 2024, to December 23, 2024, with the allotment scheduled on December 23, 2024, and a tentative listing date on December 27, 2024.

IPO Details

The price band for the Transrail Lighting IPO is set at ₹410 to ₹432 per equity share, and the company’s market capitalization at the upper price band of ₹432 per share will be ₹5,799.86 Crores. Retail investors must invest a minimum of ₹14,688 for a lot size of 34 shares, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,05,632 for 476 shares.

The book-running lead managers for the IPO are Inga Ventures Private Limited, HDFC Bank Limited, Axis Capital Limited, and IDBI Capital Markets & Securities Limited, while Link Intime India Private Limited serves as the registrar.

Grey Market Premium (GMP) and Market Outlook

As of December 17, 2024, the Grey Market Premium (GMP) for Transrail Lighting stands at ₹176, showing a potential listing gain of 40.73%. The GMP is a non-official indicator based on the demand and supply of shares in the unregulated grey market and does not guarantee actual listing price movements. However, it reflects strong market sentiment towards the IPO.

Subscription Status and Anchor Investors

The Transrail Lighting IPO has been subscribed 10.84 times as of December 23, 2024. The company raised ₹245.97 Crores from anchor investors, with 56,93,832 equity shares allocated at ₹432 per share. This reflects strong institutional backing for the IPO.

Financial Performance and IPO Valuation

For the period ending June 30, 2024, Transrail Lighting reported ₹9,297.04 million in revenue, with an EBITDA of ₹1,340.32 million and a Profit After Tax of ₹517.44 million. Over the past three fiscal years, the company has consistently shown growth in both revenue and profitability, with an ROCE of 24.33% and an ROE of 24.41% for FY24.

The pre-issue Earnings Per Share (EPS) stands at ₹19.59, with a post-issue EPS of ₹17.37, giving a P/E ratio of 22.05x (pre-issue) and 24.87x (post-issue), which is significantly lower than the industry P/E ratio of 55.5x. This suggests the IPO is attractively priced in comparison to industry standards.

Recommendation for Investors

The Transrail Lighting IPO offers strong potential for listing gains, with an expected GMP of 40.73%, indicating a favorable market outlook. Given the company’s solid financial performance, experienced management, and the lower-than-industry P/E ratio, this IPO presents an attractive option for risky investors looking for short-term listing gains or those interested in long-term investment.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX.