Transrail Lighting Limited IPO (Transrail Lighting IPO) Detail Review –
Transrail Lighting Limited IPO (Transrail Lighting IPO) is set to open for subscription from 19th Dec 2024 to 23rd Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Transrail Lighting Limited IPO (Transrail Lighting IPO). Keep scrolling below to read more!
Transrail Lighting Limited IPO (Transrail Lighting IPO) Overview –
Established in March 2008, Transrail Lighting Limited is an engineering and construction company focused on power transmission and distribution and manufacturing lattice structures, conductors, and monopoles.
The company provides the following services:-
- Supply, engineering, procurement and construction of transmission lines and distribution lines.
- EPC services in civil construction including design in relation to bridges, tunnels, elevated roads and cooling towers.
- Act as manufacturers and service providers in the poles and lighting segment, including supply, installation, and testing.
- The company provides railway services, including overhead electrification, signalling, telecommunication, earthworks, and track linking.
Since its inception, the company has completed over 200 power transmission and distribution projects. The company has a presence in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, and Nicaragua, with turnkey EPCs and supply projects.
As of June 30, 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.
As of December 2024, the company has four manufacturing units. The first one is situated in Vadodara Gujrat, second one in Deoli, Maharashtra,and third and fourth one in Silvassa, Dadra and Nagar Haveli respectively.
As of June 30, 2024, the company supplied 1.3 MMT of towers, 194,534 KM of conductors, and 458,705 poles.
As of June 30, 2024, the company has 114 employees in the design and engineering team.
Competitive Strength:
- Strong and diversified Order Book
- Established manufacturing facilities in four locations
- Proven track record of growth and established presence in the power transmission and distribution sector through effective implementation and execution skills.
Transrail Lighting Limited IPO (Transrail Lighting IPO) Synopsis –
Transrail Lighting Limited IPO (Transrail Lighting IPO) is set to be open for subscription from 19th Dec 2024 to 23rd Dec 2024, combination of fresh issue of 0.93 crore shares aggregating to Rs 400.00 crores and offer for sale of 1.02 crore shares aggregating to Rs 438.91 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Friday, December 27, 2024.
The total issue size of this IPO amounts to Rs. 838.91 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 19th Dec 2024 |
| Closing Date | 23rd Dec 2024 |
| Lot Size | 34 Shares |
| Face Value | Rs 2 |
| IPO Size | Rs. 838.91 Cr |
| Fresh Issue | Rs. 400.00 Cr |
| IPO Price Range | Rs. 410 – 432 |
| Min. Investment | Rs. 14,688 |
| Offer for Sale (OFS) | Rs. 438.91 Cr |
| Employee Discount | — |
| Basis of Allotment | 24th Dec 2024 |
| Refunds | 26th Dec 2024 |
| Listing Date | 27th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Transrail Lighting Limited IPO (Transrail Lighting IPO) Market Lot –
Transrail Lighting Limited IPO (Transrail Lighting IPO) minimum market lot is 34 shares with ₹14,688 application amount. The retail investors can apply up to 13 lots with 442 shares or ₹1,90,944 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 34 | ₹14,688 |
| Retail Maximum | 13 | 442 | ₹1,90,944 |
| S-HNI Minimum | 14 | 476 | ₹2,05,632 |
| S-HNI Maximum | 68 | 2,312 | ₹9,98,784 |
| B-HNI Minimum | 69 | 2,346 | ₹10,13,472 |
Transrail Lighting Limited IPO (Transrail Lighting IPO) Book Running Lead Managers –
- Axis Capital Limited
Transrail Lighting Limited IPO (Transrail Lighting IPO) Registrar to the offer –
The registrar for the Transrail Lighting Limited IPO (Transrail Lighting IPO) is Link Intime India Pvt Ltd. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Funding incremental working capital requirements of our Company;
- Funding capital expenditure of our Company; and
- General corporate purposes
Key Performance Indicator –
The market capitalization of Transrail Lighting Limited IPO is Rs 5,799.86 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 24.41% |
| ROCE: | 24.33% |
| EBITDA Margin: | 11.71% |
| PAT Margin: | 5.65% |
| Debt to equity ratio: | 0.56 |
| Earning Per Share (EPS): | ₹19.59 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 21.68% |
| Net Asset Value (NAV): | ₹86.79 |
Financial Status –
Transrail Lighting Limited’s revenue increased by 30.2% and profit after tax (PAT) rose by 116.8% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 Sept 2024.
The company’s total assets are Rs. 4,836.17 crore.
The company’s total revenue is Rs. 929.70 crore.
The company’s PAT is Rs. 51.74 crore.
The company’s net worth is Rs. 1,140.65 crore.
| Period Ended | 30 Sept 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 4,836.17 | 4,620.61 | 3,445.49 | 2,841.87 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 929.70 | 4,130.00 | 3,172.03 | 2,357.20 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 51.74 | 233.21 | 107.57 | 64.71 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 1,140.65 | 1,075.87 | 709.15 | 599.32 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 603.43 | 643.19 | 604.92 | 469.12 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | ||||||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.19.59 from the last year, the resulting P/E ratio is *x.
Considering the weighted EPS of Rs.14.88 for the last three years, the P/E ratio is *x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 55.05x.
Peers of Transrail Lighting Limited IPO (Transrail Lighting IPO) –
| Company Name | EPS (Basic) | NAV | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|
| Transrail Lighting Limited | 19.59 | 86.79 | 21.68 | Consolidated | ||
| Kec International Ltd. | 13.49 | 159.00 | 91.95 | 8.50 | 7.80 | Consolidated |
| Kalpataru Projects International Limited | 31.76 | 316.00 | 36.72 | 10.00 | 3.69 | Consolidated |
| Skipper Ltd | 7.66 | 84.00 | 75.97 | 9.10 | 6.93 | Consolidated |
| Patel Engineering Ltd. | 3.64 | 38.00 | 15.57 | 9.56 | 1.49 | Consolidated |
| Bajel Projects Limited | 0.37 | 49.00 | 702.97 | 0.80 | 5.31 | Standalone |
Dividend Policy –
A Dividend of Rs.1.50 per equity share was paid out by the company from 01 July 2024 till the filing of the RHP.
Transrail Lighting Limited IPO (Transrail Lighting IPO) Strengths –
A robust and varied order book.
Four manufacturing plants were established.
A Strong track record of expansion and a well-established presence in the power transmission and distribution industry thanks to strong execution and implementation abilities.
Transrail Lighting Limited IPO (Transrail Lighting IPO) Weakness –
Market-related risk factors involve variability in factors like interest rates relating to discounts or other financial-related variables that can affect market balance sheets and the company’s defined-benefit obligations.
Price Volatility for Commodities: The company incurs significant operational costs because of price fluctuations of core inputs such as steel, aluminum, and zinc. The profitability is affected by a hedging process that does not guarantee protection against all price volatility.
Interest Rate Risks: Fluctuations in the current interest rate level in the market can affect fair values or future cash flows of financial instruments, more so debts bearing floating interest rates.
Foreign Currency Exposures: For operations with revenue or expenses denominated in foreign currency, the company might be at risk concerning foreign exchange fluctuations impacting its financial performance and cash flows.
Safety and Operational Hazards: Exposure to these chemicals and plant operations while handling hazardous raw materials and dangerous equipment poses various interactable risks like explosions, fires, and mechanical failures, resulting in injury, death, or damage to the environment.
Transrail Lighting Limited IPO (Transrail Lighting IPO) Status –
Transrail Lighting Limited IPO (Transrail Lighting IPO) allotment status will be available on the Link Intime India Pvt Ltd website. Click on this link to get allotment status.
Disclaimer –
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
