Transrail Lighting IPO subscribed 80.80 times on Day 3. Check GMP, review and other details

The initial public offer (IPO) of Transrail Lighting was subscribed 80.80 times on Monday, December 23, which was the final day of the bidding process. The IPO issue is a mix of a fresh equity issue worth Rs 400 crore and an offer-for-sale (OFS) of 1.01 crore shares.

Subscriptions from retail investors stood at 22.07 times, while the non-institutional investors had subscribed by 76.41 times on the final day of bidding. Meanwhile, the qualified institutional buyers had subscribed to 201.06 times the allotted portion.

At the upper price band, the OFS of 1.01 crore shares by promoter Ajanma Holdings is valued at Rs 439 crore, taking the total issue size to about Rs 839 crore and bringing the company's market capitalization to around Rs 5,800 crore.


The proceeds from the fresh issue will be utilized to meet incremental working capital requirements, fund capital expenditure, and support general corporate purposes.

Promoters currently own an 84.51% stake in the company, while the remaining 15.49% is held by public investors, including Asiana Alternative Investment Fund, Canara Bank, and Volrado Venture Partners Fund.

Transrail Lighting IPO: Price band

The company has fixed a price band of Rs 410-432 per share, where investors can bid for 34 shares in one lot and in multiples thereafter.

Transrail Lighting IPO: GMP today

Transrail Lighting’s unlisted shares were trading at Rs 612 per share in the unofficial market on Monday, reflecting a grey market premium (GMP) of 41.7% against the upper end of the IPO price band of Rs 432.

Transrail Lighting IPO: Preview

Analysts have advised investors to subscribe to the issue, as the valuation appears attractive due to its solid financial health, strong market position, and promising growth prospects.

"The company has demonstrated consistent revenue growth, profitability, and positive cash flow, contributing to its financial stability. Its involvement in infrastructure and lighting projects, particularly with government contracts, provides a reliable revenue stream," said Bajaj Broking while recommending a subscribe.

Transrail Lighting IPO: Opening Date, Allotment, and Listing Date

The Transrail Lighting IPO opened for public subscription on December 19 and will close on December 23.

The allotment for the IPO is expected to be finalized on December 24, with the shares set to list on both NSE and BSE platforms on December 27.

About Transrail Lighting IPO

Transrail Lighting, established in 2008, is an engineering and construction firm specializing in power transmission and distribution. The company manufactures lattice structures, conductors, and monopoles.

Since its founding, Transrail Lighting has completed over 200 power transmission and distribution projects. The company operates in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, and Cameroon, executing turnkey EPC and supply projects.

As of June 2024, the company has completed the EPC of 34,654 CKM of transmission lines and 30,000 CKM of distribution lines, both domestically and internationally.

In FY24, the company’s revenue from operations rose 30% YoY to Rs 413 crore, while its profit more than doubled to Rs 233 crore during the same period.

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