Transrail Lighting Limited is set to launch its initial public offering (IPO) from December 19 to December 23, 2024, with a target to raise approximately ₹839 crores. The company specializes in power transmission and distribution, offering solutions that include manufacturing lattice structures and conductors. The IPO comprises a fresh issue of ₹400 crores and an offer for sale of 1.01 crore shares by promoter Ajanma Holdings. With a price band set between ₹410 and ₹432 per share, the proceeds will be utilized for working capital, capital expenditures, and general corporate purposes.
₹160
₹432
₹590
Expert Opinions
Market sentiment for the Transrail Lighting IPO is cautiously optimistic, reflecting growing interest in infrastructure investments amid India’s push for enhanced power transmission capabilities. Company strengths include a solid track record in the EPC sector, with revenue growth from ₹2,284 crores in FY22 to ₹4,009 crores in FY24, demonstrating robust operational performance. However, risks and challenges involve reliance on government tenders for approximately 70% of revenue, which exposes the company to regulatory changes and project delays.
The valuation analysis indicates a price band of ₹410 to ₹432 per share for a total issue size of ₹839 crores, which seems reasonable given the company’s growth trajectory. From a long-term investment perspective, Transrail Lighting is well-positioned to benefit from increasing infrastructure spending in India, making it an attractive option for investors seeking exposure in the energy and construction sectors, provided they are aware of the associated risks.
Investor Considerations
Investors considering the Transrail Lighting IPO should evaluate several critical aspects. Company performance and fundamentals are strong, with revenue growth from ₹2,284 crores in FY22 to ₹4,009 crores in FY24, and net profit increasing significantly, indicating operational efficiency. The sector outlook is promising, as India plans to invest heavily in infrastructure development, particularly in power transmission and renewable energy projects.
The IPO valuation, with a price band of ₹410 to ₹432 per share for a total issue size of ₹839 crores, appears reasonable given the company’s growth trajectory. Growth prospects are bolstered by strategic investments in manufacturing capabilities and expanding project portfolios. However, risk factors include reliance on government contracts for about 70% of revenue and potential project delays or cost overruns. A long-term investment horizon is advisable, as Transrail Lighting is well-positioned to benefit from the expanding energy sector, making it an attractive option for investors seeking exposure to infrastructure development.
| Date | GMP | Trend |
|---|---|---|
| 26 Dec 2024 15.40 | ₹160 | Down |
| 25 Dec 2024 11.21 | ₹190 | --- |
| 24 Dec 2024 11.02 | ₹190 | Up |
| 23 Dec 2024 11.52 | ₹180 | --- |
| 22 Dec 2024 12.05 | ₹180 | --- |
| 21 Dec 2024 11.56 | ₹180 | --- |
| 20 Dec 2024 10.49 | ₹180 | Up |
| 19 Dec 2024 18.04 | ₹170 | Up |
| 18 Dec 2024 11.54 | ₹110 | --- |
| 17 Dec 2024 12.09 | ₹110 | --- |
| 16 Dec 2024 17.58 | ₹110 | Up |
| 15 Dec 2024 13.22 | ₹00 | --- |
| 14 Dec 2024 16.33 | ₹00 | --- |
FAQs
The Grey Market Premium showed excellent accuracy in predicting Transrail Lighting’s listing performance. The GMP of ₹160 predicted a premium of 37.04% over the issue price, while the stock delivered a very similar gain of 36.57%. With a minimal prediction error of just 0.34%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Transrail Lighting IPO Current GMP is ₹160.
Transrail Lighting IPO Expected Returns is 37.04%.
Transrail Lighting IPO estimated listing price is ₹592.