Transrail Lighting Limited IPO: A Comprehensive Investment Guide for 2024
Transrail Lighting Limited IPO- Overview
Founded in February 2008, Transrail Lighting Ltd. is an engineering construction company that manufactures lattice structures, conductors, and monopoles, specializing in energy transmission and distribution. There was also an offer for sale of 1.02 crore shares valued at Rs 438.91 crore. The IPO auction was launched on December 19, 2024, and will conclude on December 23, 2024. The allotment of shares will be finalized on December 24, 2024, and the shares are scheduled to be listed on BSE and NSE on December 27, 2024. 2024 The price range for IPOs has been fixed at ₹410 to ₹432 per share. Investors can apply for a minimum of 34 shares, with a retail investment of ₹ ₹14,688 The minimum investment for small non-institutional investors (sNII) is 14 lots (476 shares) equivalent to ₹2,05,632, while the minimum investment for large non-institutional investors (bNII) is ₹14,688) is 69 lots (2,346 shares) for a total of ₹10,13,472.
IPO Subscription Period
The Transrail Lighting Limited IPO is scheduled to open for subscription on December 19, 2024, and will close on December 23, 2024. The share allotment is expected to be finalized by December 24, 2024, with the tentative listing date set for December 27, 2024, on both the BSE and NSE.
Pricing and Lot Details
The Transrail Lighting Limited IPO offers investors an opportunity to invest in a prominent player in the engineering and construction industry. Below are the key details:
- Price Band: ₹410 to ₹432 per share. The lower limit is ₹410, while the upper cap is ₹432.
- Lot Size: A minimum investment requires 34 shares, amounting to approximately ₹14,688 at the upper price band.
- Issue Size: The IPO aims to raise a total of ₹838.91 crore, comprising a fresh issue of 0.93 crore equity shares worth ₹400 crore and an Offer for Sale (OFS) of 1.02 crore shares valued at ₹438.91 crore.
- Face Value: ₹2 per equity share, with the IPO price reflecting a premium based on the company’s valuation and market demand.
- The Transrail Lighting IPO follows a structured bidding system that accommodates various investor categories, including Retail Investors, Small Non-Institutional Investors (sNIIs), and Large Non-Institutional Investors (bNIIs). Below is a breakdown of investment requirements:
| Category | Lots | Shares | Investment Amount (₹) |
| Retail Investors | Minimum: 1 | 34 | 14,688 |
| Retail (Max) | Maximum: 13 | 442 | 1,90,944 |
| Small HNIs (Min) | Minimum: 14 | 476 | 2,05,632 |
| Small HNIs (Max) | Maximum: 68 | 2,312 | 9,98,784 |
| Large HNIs (Min) | Minimum: 69 | 2,346 | 10,13,472 |
Reservation Structure
The Transrail Lighting Limited IPO employs a structured reservation system to ensure participation from diverse investor categories:
- Qualified Institutional Buyers (QIBs): 50% of the total issue is reserved for QIBs, including mutual funds, foreign institutional investors, banks, and other large financial institutions.
- Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
- Small HNIs (sNIIs): Minimum 14 lots (476 shares), amounting to ₹2,05,632 at the upper price band.
- Large HNIs (lNIIs): Minimum 69 lots (2,346 shares), totaling ₹10,13,472 at the upper price band
- Retail Investors: 35% of the total issue is reserved for retail investors.
- Minimum lot size: 1 lot (34 shares), requiring an investment of ₹14,688 at the upper price band.
This reservation system ensures balanced participation across institutional and individual investors while catering to varying investment capacities.
Key Dates & Timelines
Transrail Lighting Limited IPO Timeline (December 2024)
- IPO Open Date: Thursday, December 19, 2024
- IPO Close Date: Monday, December 23, 2024
- Basis of Allotment: Tuesday, December 24, 2024
- Initiation of Refunds: Thursday, December 26, 2024
- Credit of Shares to Demat Accounts: Thursday, December 26, 2024
- Listing Date on BSE and NSE: Friday, December 27, 2024
Book Running Lead Managers
The Transrail Lighting Limited IPO is being managed by the following Book Running Lead Managers (BRLMs):
- Inga Ventures Private Limited
- Axis Capital Limited
- HDFC Bank Limited
- IDBI Capital Market Services Limited
The registrar for the IPO is Link Intime India Private Limited, responsible for processing applications, managing the allotment process, and handling refund-related activities for the IPO.
Promoters Information
Transrail Lighting Limited is led by a seasoned management team with extensive experience in the transmission and distribution (T&D) industry.
- Digambar Chunnilal Bagde, the Executive Chairman, holds a Bachelor of Engineering (Civil) degree and has over 47 years of experience in the design and execution of transmission lines in both Indian and international markets. He has been associated with the company since its inception in 2008.
- Randeep Narang, the Managing Director and Chief Executive Officer, holds a Master of Business Administration from NMIMS Mumbai and has attended several leadership development and strategic management programs in the U.S. and India. With more than 36 years of experience managing complex profit and loss responsibilities across various industries, he has been instrumental in steering the company’s growth and operations.
- Sanjay Kumar Verma, a Non-Executive Director, holds a diploma of master in computer systems and networks from Khaikov State Polytechnical University, Ukraine. He has several years of experience in business administration and serves as a director on the boards of multiple companies.
The promoters of Transrail Lighting Limited include Ajanma Holdings Private Limited, Digambar Chunnilal Bagde, and Sanjay Kumar Verma. This leadership team brings a wealth of expertise and strategic vision to Transrail Lighting Limited, positioning the company for sustained growth and success in the T&D sector.
About Transrail Lighting Ltd.
Founded in February 2008, Transrail Lighting Ltd is a leading engineering, procurement and construction (EPC) company with a primary focus on energy transmission and distribution. With over four decades of expertise The company has thus built a strong reputation for providing turnkey EPC solutions to civil construction. This includes bridges, tunnels and cooling towers. as well as poles and lighting systems and railway infrastructure, such as overhead electrification. Signal and rail connections making the company successful in transmitting power and Worldwide distribution project It has started operations in 58 countries, including Bangladesh, Kenya, Nigeria, Finland and Poland… This global presence reinforces our ability to execute large-scale projects in a variety of challenging markets. Especially in Asia and Africa… Financially, Transrail is showing strong growth. Its revenue increased from Rs 2,139.09 crore in 2021 to Rs 3,086.14 crore in 2023, coupled with lower costs. This indicates improved operational efficiency. As of September 2023, the company had 1,575 employees, reflecting its commitment to improving operations and building capacity. Transrail is well positioned to capitalize on growing demand in the global communications and electricity distribution sectors, driven by growing energy demand in emerging markets. The integration of smart grids and renewable energy sources presents significant opportunities, especially in high voltage (HV) and ultra-high voltage (EHV) solutions. The company’s focus is on delivering sustainable, quality infrastructure. That high is consistent with the priorities of industry trends.
Financial Highlights: Investor-Centered Approach
- Strong revenue growth Operating Income: ₹4,009 Crore in FY2022, up 75.5% from FY2022. This sustained growth underscores our strong business performance and extensive market position. Total revenue: ₹4,113 million in fiscal year Reflecting two-year growth of 73.4%, supported by operational excellence and additional revenue streams.
- Effective cost management Consumables expenses: Increased to ₹2,246 trillion in FY2024, in line with revenue growth. which shows efficiency in operations Subcontract costs: ₹499 million in fiscal year This demonstrates scalable operations. At the same time, external work can be managed efficiently.
- Increase profits Profit after tax (PAT): ₹233 trillion in FY, up 118% from FY23 and 264% from FY22, highlighted by key operational and financial improvements. Other Income: Continued growth in non-operating income, such as interest or dividends. Helps create profits.
- Expanding assets and financial strength Total assets: ₹4,836 crore as on June 30, 2024, up 70% from FY2022, indicating substantial investment in the capital structure. Net worth: ₹1,140 million in FY2024, up 90% in three years, reflecting strong profits and reinvestment ability.
- Careful debt management Total debt: ₹603 million in fiscal year which is in outstanding proportion to the growth of assets It signals disciplined financial practices. Finance Expenditure: Fixed at ₹50 million, emphasizing efficient debt service amid expansion.
- Investing in human fixed assets Employee benefit expenditure: ₹198 million in fiscal year This emphasizes the company’s commitment to its people. Depreciation and Amortization: Continued growth to ₹164 trillion in FY2024 indicates strategic investments in fixed assets and long-term growth initiatives.
Important points for investors
- Transrail Lighting Ltd shows a clear path to revenue growth. Improving Profitability and efficiency in operations.
- Combined with disciplined spending and debt management. The company’s financial strength provides a solid foundation for sustainable performance.
- The company’s strategic investments in assets and employees further position it as a reliable and growth-oriented player in the EPC sector.
- Transrail is an attractive investment opportunity for those wanting exposure to a fast-growing and well-run enterprise in the communications, electricity, and infrastructure sectors.
IPO Objectives
Transrail Lighting Limited is proposing an Initial Public Offering (IPO) with the aim of utilizing the net proceeds for various purposes. The company intends to allocate the funds towards the following objectives:
- Incremental working capital requirements to support the company’s operations.
- Funding capital expenditure to aid in the company’s growth and development.
- General corporate purposes to enhance its overall business activities.
The total number of shares to be issued is as follows: 92,59,259 shares will be issued through a fresh issue, while 1,01,60,000 shares will be offered for sale by existing shareholders.
Subscription Status as of December 20, 2024, 06:54 PM
| Category | Subscription (times) | Shares Offered | Shares Bid For |
| Qualified Institutional Buyers (QIB) | 1.36 | 37,95,889 | 51,51,680 |
| Non-Institutional Investors (NII) | 7.42 | 28,46,917 | 2,11,36,508 |
| – bNII (bids above ₹10L) | 5.67 | 18,97,945 | 1,07,70,010 |
| – sNII (bids below ₹10L) | 10.92 | 9,48,972 | 1,03,66,498 |
| Retail Investors | 7.13 | 66,42,805 | 4,73,67,100 |
| Employee Portion | 1.53 | 4,29,814 | 6,55,792 |
| Total | 5.42 | 1,37,15,425 | 7,43,11,080 |
Recommendation:
Transrail Lighting Limited stands out with strong profitability, consistent revenue growth, and superior operational efficiency, outperforming larger peers like KEC International and Kalpataru Projects. Its higher Operating and Net Profit Margins reflect effective management.
Despite its smaller scale and shorter history in the T&D sector (since 2016), its lower P/E ratio suggests potential undervaluation, though market sentiment may remain cautious. Strong management and customer relationships support growth, but risks like order book susceptibility and regulatory challenges should be considered.
A promising T&D growth story with risks; thorough due diligence is essential.