Transrail Lighting Limited IPO: Things Investors Should Know

Transrail Lighting IPO is offering a book-built public issue. This upcoming IPO is offering a fresh issue worth Rs 450 crores of shares and upto 1.02 Crore of equity shares as offer for sale, face value is reported as Rs. 2 Each Share. This new IPO issue is being made through the book building process, with reservation of not more than 50% of the new offer is reserved for Qualified Institutional Investor, not less than 15% is reserved for Non-Institutional Investor and the rest 35% or more is reserved for Retail Individuals.

About the Company

Transrail Lighting Limited is one of the leading Indian engineering, procurement and construction (“EPC”) companies with primary focus on power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles. The company have a track record of four decades in providing comprehensive solutions on a turnkey basis globally and have been a trusted and longstanding partner in the power transmission and distribution sector. The company has also reported the highest growth in its revenue from operations at 35.1% among its peers in Financial Year ended March 31, 2023.

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Objectives of the Public Offering

The intent of net proceeds utilization is set forth to funding incremental working capital requirements, funding capital expenditure of our Company and for general corporate purposes. The funding requirements are based on internal management estimates which in turn, is based on current conditions and is subject to change in light of changes in external circumstances, costs, other financial condition or business strategies. Company is yet to place orders for the total capital expenditure. They have not entered into any definitive agreements to utilize the Net Proceeds for this object of the Offer and have relied on the quotations received from third parties for estimation of the cost. While the company have obtained the quotations from various vendors in relation to such capital expenditure, most of these quotations are valid for a certain period of time and may be subject to revisions, and other commercial and technical factors. Additionally, in the event of any delay in placement of such orders, the proposed schedule implementation and deployment of the Net Proceeds may be extended or may vary accordingly.

Financials of the Company

The Company reported net revenue of Rs 3172.03 Crore, Assets worth Rs 3445.49 Crore and Profit After Tax is reported Rs 107.57 Crore for the year ended March 31, 2023. If we look for sales statistics of the company it represented 12.83%, 15.34 % and 13.32% for the Financial Years ended March 31, 2023, March 31, 2022 and March 31, 2021, respectively.

Lead Manager, Registrar & Promoter of Public Offering

The IPO is managed by Inga Ventures Private Limited, Axis Capital Limited, HDFC Bank Limited, IDBI Capital Markets & Securities Limited that is the book-running lead manager whereas Link Intime India Private Limited has been appointed as the registrar for the issue. The promoters of the company are Ajanma Holdings Private Limited, Digambar Chunnilal Bagde and Sanjay Kumar Verma. The listing will be on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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