Transrail Lighting Limited – About the Company
With over four decade of track record, Transrail Lighting is India’s leading engineering, procurement and construction companies, with integrated manufacturing facilities for structures, conductors, and monopoles. Transrail Lighting business is divided into four verticals i.e. power transmission and distribution, civil construction, poles and lighting, and railways. The company has a footprint in 58 countries, including turnkey epcs or supply projects. As of Sep 30, 2023, it has undertaken EPC of 33,500 circuit km of transmission lines and 30,000 circuit kilometers of distribution lines, both domestically and internationally.
TRANSRAIL LIGHTING LIMITED IPO Objectives
The IPO issue by TRANSRAIL LIGHTING LIMITED is both offer for sale and fresh issue. Taking the offer for sale issuance, the selling promoter will offload up to 10,160,000 Equity Shares aggregating to Rs. [●] million.
As per DRHP, the Company proposes to utilize Net Proceeds through fresh issuance towards funding the following objects:
- Funding incremental working capital requirements of our Company
- Funding capital expenditure of our Company
- General corporate purposes
| Particulars | Amount |
| Funding incremental working capital requirements of our Company | 2500 |
| Funding capital expenditure of our Company | 909.02 |
| General corporate purposes | [●] |
| Total | [●] |
TRANSRAIL LIGHTING LIMITED IPO Details:
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Basis of Allotment | December 24, 2024 |
| Listing Date | December 27, 2024 |
| Face Value | ₹2 per share |
| Price | ₹410 to ₹432 per share |
| Lot Size | 34 Shares |
| Total Issue Size | 1,94,19,259 shares |
| (aggregating up to ₹838.91 Cr) | |
| Fresh Issue | 92,59,259 shares |
| (aggregating up to ₹ 400.00 Cr) | |
| Offer For Sale | 1,01,60,000 shares of ₹2 |
| (aggregating up to ₹438.91 Cr) | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
TRANSRAIL LIGHTING LIMITED IPO Issue Price & Size
The issue size of the IPO has been declared and the overall issue size of the IPO is Rs 838.91 crores, out of which 92,59,259 Equity Shares, aggregating up to Rs 400 cr, comprise of fresh issuance, and the remaining Rs 438.91 will be offered for sale by shareholders.
TRANSRAIL LIGHTING LIMITED IPO Launch Date
Transrail Lighting Limited IPO will be open on December 19, 2024 and close on the December 23, 2024. All types of investors can bid between these dates through their eligible categories.
TRANSRAIL LIGHTING LIMITED Financial Statements:
| Particulars | 6M period ended Sep 30, 2023As | For the FY ended Mar 31, 2023 | For the Financial Year ended Mar 31, 2022 | For the Financial Year ended Mar 31, 2021 |
| INCOME | ||||
| Revenue from operations | 18135.31 | 30861.37 | 22841.42 | 21390.86 |
| Other Operating Revenue | 332.6 | 660.19 | 658.73 | 464.29 |
| Other income | 139.77 | 198.78 | 71.84 | 66.58 |
| Total income | 18607.68 | 31720.34 | 23571.99 | 21921.73 |
| EXPENSES | ||||
| Cost of materials consumed | 10976.16 | 18214.11 | 12059.66 | 9950.34 |
| Changes in inventories of finished goods and work-in-progress | -586.08 | -82.08 | -178.14 | 603.06 |
| Sub-contracting Expenses | 1813.28 | 3471.57 | 3540.4 | 3645.72 |
| Employee benefits expense | 965.71 | 1790.37 | 1594.58 | 1355.54 |
| Finance costs | 794.03 | 1196.94 | 848.43 | 841.22 |
| Depreciation and amortisation expense | 254.81 | 458.26 | 378.39 | 340.49 |
| Other expenses | 3299.33 | 5197.97 | 4422 | 3767.88 |
| Total expenses | 17517.24 | 30247.14 | 22665.32 | 20604.25 |
| Profit/(loss) before tax | 1180.69 | 1482.94 | 901.7 | 1310.31 |
| PAT | 848.88 | 1075.68 | 647.07 | 981.81 |
| Particulars | As at Sep 30, 2023 | As at Mar 31, 2023 | As at Mar 31, 2022 | As at Mar 31, 2021 |
| Net cash flow from operating activities (A | 159.02 | 1426.79 | 501.62 | 849.63 |
| Net cash flow used in investing activities (B) | -769.39 | -1045.3 | -813.91 | -203.23 |
| Net cash flow from/(used in) financing activities(C) | 698.43 | 290.61 | -3.72 | 25.31 |
| Net increase / (decrease) in cash and cash equivalents | 88.06 | 672.1 | -316.01 | 671.71 |
| Key Ratios | ||||
| As at / for the FY ended | ||||
| Particulars | 6M period ended Sep 30, 2023 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 |
| Revenue from Operation | 18467.91 | 31521.56 | 23500.15 | 21855.15 |
| Revenue growth | N.A. | 34.13% | 7.53% | N.A. |
| EBIDTA | 2089.76 | 2939.35 | 2056.68 | 2525.44 |
| EBIDTA Margin | 11.32% | 9.32% | 8.75% | 11.56% |
| Profit After Tax | 848.8 | 1075.68 | 647.07 | 981.81 |
| Profit After Tax margin | 4.36% | 3.39% | 2.75% | 4.48% |
| Net Debt | 4745.55 | 4802.08 | 4116.13 | 3400.24 |
| Debt equity ratio | 0.62 | 0.78 | 0.71 | 0.76 |
| Net Debt to EBITDA | 2.27 | 1.63 | 2 | 1.35 |
| Return on Capital Employed | 11.72 | 18.27% | 14.94% | 22.18% |
| Working capital days | 60 | 53 | 61 | 54 |
| Working Capital Turnover Ratio | 2.99 | 6.83 | 5.97 | 6.7 |
| Vertical Wise Order Book | ||||
| 6M period ended Sep 30, 2023 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
| Power transmission and distribution | 86589.54 | 84158.42 | 40899.02 | 27524.4 |
| Civil construction | 8217.4 | 9754.61 | 13181.17 | 22826.19 |
| Poles and lighting | 591.57 | 929.97 | 1661.4 | 1344.97 |
| Railways | 805.97 | 1349.79 | 3334.28 | 100.22 |
| Total | 96204.48 | 96192.49 | 59075.87 | 51795.78 |
| Geography wise order book | ||||
| Vertical | For the 6M period ended Sep 30, 2023 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 |
| In India | 31212.16 | 33770.1 | 28615.14 | 35003.34 |
| Outside India | 64992.32 | 62422.69 | 3046073 | 16792.44 |
| Total | 96204.48 | 96192.79 | 59075.87 | 51795.78 |
TRANSRAIL LIGHTING LIMITED Financial Performance
Revenue from operations from sale of products, sale of services, income from EPC contracts and other operating revenue was Rs.1,362.45 million, Rs.71.55 million, Rs.16,701.31 million and Rs.332.60 million, respectively for the six month period ended September 30, 2023.
Company has done a Net cash outflow on capital expenditure in past years. Capital outlay increased from Rs. 166.79 mil in 2021 to Rs. 758.20 in 2022. For the Financial Year ended March 31, 2023 Company Capital Expenditure was Rs. 518.17 mil.
For FY223, net cash flow from operating activities was Rs. 1,426.79 million compared to a rise from Rs. 501.62 mil For Financial Year ended March 31, 2022.
Employee benefits expense increased by 12.28 % over Rs. 1,594.58 million in FY22 to Rs. 1,790.37 million in FY23 due a increase in salaries, bonus, perquisites etc.
TRANSRAIL LIGHTING LIMITED IPO Promoters & Shareholding of the Company
As on the date of filing the DRHP, Ajanma Holdings Private Limited was the biggest shareholder of the company with 85% ownership.
Digambar Chunnilal Bagde, hold 1.25% equity directly into the company is a promoter and executive chairman of company. Sanjay Kumar Verma, who directly owns 0.04% equity share of company, is a Promoter and Non-Executive Director of Company.
| Name of the Promoter | % of pre-Offer issued, subscribed and paid-up Equity Share Capita |
| Ajanma Holdings Private Limited | 85% |
| Digambar Chunnilal Bagde | 1.25% |
| Sanjay Kumar Verma | 0.04% |
| Total | 86.29% |
Why Invest in TRANSRAIL LIGHTING LIMITED IPO?
Either applying with small subscription money or bidder for greater number of shares, one should check company’s fundamentals that help to know its financial performance and competitive strength that drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Also Read: Difference Between Fundamental Analysis and Technical Analysis
In a listed company, apart from fundamental analysis, you can also perform the technical analysis, which also helps to know the share price valuation and movement as per the performance of the company. However, for an unlisted company, or company that introduced the IPO, you have only options to analyse the fundamentals of the company and compare the share price valuation from its listed peer group companies.
Competitive Strengths:
Proven track record in power transmission and distribution
Till date, the company has completed over 200 projects in power transmission and distribution verticals. As of September 30, 2023, the company has constructed 33,500 CKM transmission lines, including over 19,000 CKM of lines above 132 kV, proving its reliability as an EPC partner in the ultra-high voltage transmission lines sector. The company has also built India's first 1200 kV transmission lines, 30,000 CKM distribution networks, and built substations up to 400kV.
Established manufacturing facilities
The company has established several manufacturing facilities in Gujarat and Maharashtra equipped with advanced technology, focusing on the production of galvanized lattice steel towers, conductors, and poles. The company also has an in-house tower testing facility in Deoli, Maharashtra, which houses the research and development team and offers online viewing of tower tests.
Quality assurance
The company has conducted internal inspections and incremental quality control of raw materials to maintain quality assurance. The company has also conducted external inspections from CE and NABL. Their facilities are ISO certified for Management System like Quality Management System, Environmental Management System, etc.
Competitive Weakness:
Heavily reliant on government tenders, public sector undertakings
For the six months ending Sep 30, 2023, approximately 88% of revenue primarily came from tenders released by government entities, including domestic and international entities.
EPC contracts for transmission towers, conductors, substations, and electrification for Indian railways are primarily with public sector undertakings, which are awarded through a competitive bidding process.
Exchange rate fluctuation
The company sources raw material like zinc and aluminium from globe and since commodities are quoted in Dollars term, so the expenses are largely influenced by the value of the dollar.
Fluctuation in cost of raw materials
The company is heavily relied on raw material like steel, zinc, and aluminum for manufacturing of various products such as transmission towers, conductors, and street light poles. Seeing current geopolitical conditions, prices of raw material have become really volatile. If the company due to any reason couldn’t pass on higher effect of raw material price fluctuations, the effects of which could adversely impact its business, financial condition, results of operations, and cash flows.
TRANSRAIL LIGHTING LIMITED IPO Grey Market Premium (GMP)
Grey Market Premium or GMP is that premium price over the issue price, that a speculator or investor is ready to pay for an IPO-bounded company likely to list on the bourse. GMP is determined in the grey market as per the demand and supply of the shares in the grey market.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
The GMP is an unofficial ecosystem that keeps fluctuating in the grey market, hence it should be not considered as an individual factor while determining the share price of a company. As there are various factors, that affect the stock market in India or the stock price of the individual companies. However, you can use the GMP, as a speculative price, at which the stock price might be listed on the exchange.
Also Read: What are the Top Factors Affecting the Stock Market in India
As per the sources, the GMP of Transrail Lighting Limited IPO is trading at around Rs 120 in the grey market shows the share of Transrail Lighting Limited is expected to list at around Rs 550 if you consider the upper price band of Rs 432 announced in the IPO for the bidding.
How to Apply for TRANSRAIL LIGHTING LIMITED IPO?
To apply in the Transrail Lighting Limited IPO just open a trading account and demat account with Moneysukh and follow the steps given below. However, by opening both these accounts with Moneysukh you will have the benefits of trading and investing in various investment horizons.
Also Read: What to Know Before Investing in Stocks: 10 Things to Consider
At Moneysukh you will get the advantages of the best online trading app with the best features demat account at the lowest broking charges in India. Here you can also choose to trade in Algo-trading with the latest software algorithms like TradeTron, AlgoBulls, Quantman, Keev, Trade Radar, and FoxTrader all of are integrated with the most advanced charting systems TradingView to give you world-class trading and investing experience with updated market information and live feeds of the market data.
Also Read: How to Choose the Best Trading Platform in India: Points to Check
Steps to Apply for Transrail Lighting Limited IPO:
Step 1: To apply for Transrail Lighting Limited IPO use your PC or smartphone.
Step 2: Now browse to trade.moneysukh.com and log in with your User ID & password.
Step 3: Here just go to the IPO section and select the Transrail Lighting Limited IPO.
Step 4: Now you need to fill in the various details like price, quantity, and so on.
Note: Always keep in mind that while bidding at the cutoff price and then submit your application.
Step 5 : Here before submitting your IPO application successfully you have to make the payment.
Also Read: Choosing the right broker: Decoding the mystery of lowest brokerage charges
How to Check Transrail Lighting Limited IPO Allotment Status?
To check the Transrail Lighting Limited IPO allotment status you need PAN and IPO application details but that would be possible only after 12 Feb 2024 which is the basis of the allotment date. And after 13 Feb 2024, investors will start getting refunds if they don't get the allotment of shares. You can use various online reliable sources like BSE, and NSE including Moneysukh to check the allotment status.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
The allotment of shares in the IPO is not possible for every individual, especially when the IPO is oversubscribed. If you have applied through either the retail category or HNI category, and both these categories are oversubscribed many times, then your chances of getting the allotment are very low.
If you don't get the allotment of shares in the IPO, your money will refunded to your bank account after 13 Feb 2024 and if you get the allotment of any share, then the allocated shares will be transferred into your demat account on 13 Feb 2024 of on the date of listing date i.e. 14 Feb 2024. However, you can increase your chances of getting the allotment in IPOs, if you follow tips and tricks while applying.
Also Read: How to improve Allotment chances: 15 Tips for investing in IPO
