Transrail Lighting Limited, a prominent Indian engineering, procurement, and construction (EPC) company, is offering its initial public offering (IPO) to raise ₹838.91 Crores. The IPO 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 IPO opens on December 19, 2024, and closes on December 23, 2024. The lot size for the IPO is set at 34 shares, and the price band is ₹410 to ₹432 per equity share. Retail investors can subscribe with a minimum investment of ₹14,688, while High-Net-Worth Individuals (HNIs) can invest a minimum of ₹2,05,632 for 14 lots (476 shares).

At the upper price band of ₹432 per share, Transrail Lighting Limited will have a market capitalization of ₹5,799.86 Crores. The company operates across four business verticals: power transmission and distribution, civil construction, poles and lighting, and railways. With over 40 years of experience, Transrail Lighting is a leading player in the EPC industry, known for providing turnkey solutions globally.

Transrail Lighting IPO Financials and P/E Ratio

Transrail Lighting has demonstrated impressive financial growth over the years. For the period ending June 30, 2024, the company reported revenues of ₹9,297.04 million, showing a growth from ₹41,299.99 million in FY2024. The EBITDA for FY2024 stood at ₹5,310.33 million, and the Profit After Tax (PAT) was ₹2,332.09 million. The company has shown significant revenue growth and profit margins over the last few years.

For the IPO, Transrail Lighting has reported a pre-issue EPS of ₹19.59 and a post-issue EPS of ₹17.37. The P/E ratio at the pre-issue price is 22.05x, and the post-issue P/E ratio is 24.87x, well below the industry P/E ratio of 55.5x, suggesting that the IPO is attractively priced. The company has also reported a Return on Capital Employed (ROCE) of 24.33% and a Return on Equity (ROE) of 24.41% for FY24, signaling strong financial health.

Transrail Lighting IPO GMP and Expected Listing Gains

The Grey Market Premium (GMP) for the Transrail Lighting IPO shows strong investor interest. As of December 17, 2024, the GMP stands at ₹176, indicating a potential listing gain of 40.73%. This suggests that if the shares list at the expected price of ₹608 per share, investors could see significant returns. However, since the GMP is not an official market indicator and is based on supply and demand in the unorganized market, it is advisable to consider it purely for informational purposes.

Subscription and Allotment Status

As of 7:00 PM on December 20, 2024, the Transrail Lighting IPO had been subscribed 5.31 times on its second day of the subscription period, reflecting strong demand. The allotment for the IPO is expected to be finalized on December 23, 2024. Investors can check their allotment status by visiting the registrar’s website and entering the application number, PAN, or DP Client ID.

Transrail Lighting IPO Review

The Transrail Lighting IPO is backed by strong promoters, including Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma. The company has established a strong track record in the engineering and construction sector and is known for its high-quality, turnkey solutions. Its four verticals—power transmission and distribution, civil construction, poles and lighting, and railways—ensure that Transrail Lighting is positioned well in the growing infrastructure sector.

The IPO’s attractive pricing, coupled with strong financials, makes it an enticing option for investors seeking listing gains or long-term investments. The GMP further highlights the market’s confidence in the company, and the robust subscription numbers point to strong investor demand.

Conclusion

In conclusion, the Transrail Lighting IPO offers an excellent opportunity for investors with its solid financials, strong market positioning, and potential for listing gains. The company’s growth trajectory and diverse business verticals make it a promising investment for those looking to enter the infrastructure and construction sectors. With a reasonably priced IPO and strong Grey Market Premium, this IPO is one to watch closely.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is 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