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Transrail Lighting IPO subscribed 3.30 times on Day 2. Check GMP and other details
Team Finance Saathi
20/Dec/2024
What's covered under the Article:
- Transrail Lighting IPO opens December 19-23, 2024, with a subscription status of 3.30 times.
- IPO GMP shows potential listing gains of 40.73%.
- How to check allotment status and investment insights for potential investors.
Transrail Lighting IPO: Overview and Details
Transrail Lighting, a leading Indian engineering, procurement, and construction (EPC) company, is offering an IPO amounting to ₹838.91 Crores. This 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 subscription period for the Transrail Lighting IPO runs from December 19 to December 23, 2024, with the allotment date scheduled for December 23, 2024. The shares will be listed on BSE and NSE, with a tentative listing date set for December 27, 2024.
IPO Pricing and Investment Details
The price band for the IPO is set at ₹410 to ₹432 per share, with a market capitalization of ₹5,799.86 Crores at the upper price band. The lot size is 34 shares, and retail investors are required to invest a minimum of ₹14,688, while HNIs must invest for a minimum of 476 shares, totaling ₹2,05,632.
The book-running lead managers are Inga Ventures, HDFC Bank, Axis Capital, and IDBI Capital Markets. The registrar for the issue is Link Intime India Private Limited.
Transrail Lighting IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the Transrail Lighting IPO indicates a potential listing gain of ₹176 (or 40.73%). This reflects strong demand, although GMP is not a guaranteed indicator of the listing price. Here’s the GMP trend for the IPO:
- 17 December 2024: ₹176 (40.73% increase in expected listing price)
- 16 December 2024: ₹65 (15.05% increase in expected listing price)
Live Subscription Status
As of 12:10 PM on December 20, 2024, the Transrail Lighting IPO has been subscribed 3.30 times on its second day of subscription, indicating a strong interest from investors. You can check the live subscription status on the BSE website for real-time updates.
Anchor Investors and Fundraising
Transrail Lighting has raised ₹245.97 Crores from Anchor Investors at ₹432 per share. The company has allocated 56,93,832 equity shares to the Anchor Investors, reinforcing confidence in the IPO from institutional investors.
IPO Allotment Status Guide
The allotment date for the Transrail Lighting IPO is December 23, 2024, and investors can check their allotment status via the registrar’s website. Here’s how to check:
- Visit the IPO allotment status page on the registrar’s website.
- Select Transrail Lighting IPO from the dropdown list.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to view your allotment status.
Transrail Lighting IPO Review
Transrail Lighting is a key player in the Indian engineering, procurement, and construction (EPC) sector, specializing in lattice structures, conductors, monopoles, and providing turnkey solutions for over four decades. The company's business spans four main verticals:
- Power transmission and distribution, including substations.
- Civil construction.
- Poles and lighting.
- Railways.
Promoted by experienced leaders such as Ajanma Holdings Pvt. Ltd., Digambar Chunnilal Bagde, and Sanjay Kumar Verma, Transrail Lighting has shown impressive growth in its revenue and profitability. The company’s revenues for FY24 reached ₹41,299.99 Million, and its profit after tax (PAT) for FY24 was ₹2,332.09 Million.
Valuation and Financial Metrics
The pre-issue P/E ratio stands at 22.05x, and the post-issue P/E ratio is 24.87x, which is well below the industry P/E ratio of 55.5x, indicating that the IPO is reasonably priced. The company’s ROCE for FY24 is 24.33%, and ROE stands at 24.41%, showing strong financial health and growth potential.
Given the financial strength, strong demand, and 40.73% GMP, we recommend risky investors to consider applying for the Transrail Lighting IPO for listing gains or as a long-term investment.
Investment Opportunity
For those looking to invest in the EPC sector with a strong track record and robust growth potential, the Transrail Lighting IPO offers an excellent opportunity. With positive GMP trends and healthy financials, this IPO presents a compelling case for listing gains and long-term growth.