Transrail Lighting IPO: Fundamental Analysis

Transrail Lighting Limited IPO opened for bidding on 19th December 2024 and is on the focus of investors for its tentative listing date prescribed as 27th December 2024. Link Intime India Pvt. Ltd., the registrar of this book-built issue, awaits to announce the allotment status on 24th December 2024. 

The face value of Transrail Lighting Limited shares stands at Rs 2 per share. However, the price band is set to Rs 410 to Rs 432. In total, 1,94,09,257 shares are offered in this issue, with a lot size of a minimum of 34 shares. Refer to the table below for Transrail Lighting IPO Details and timelines. 

Transrail Lighting Limited IPO: Offer Details, Issue Size, and More

Transrail Lighting Limited has come with its IPO, consisting of a fresh issue of around 93,00,000 shares and an offer for sale of 1,02,00,000 shares. The total worth of the IPO is Rs 839.91 crore. The shares of Transrail Lighting Ltd. will be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). 

Here is the segregation of shares offered in this IPO among diverse categories of investors. 

*Note: QIB (Qualified Institutional Buyers), NII (Non-Institutional Investors), sNII (Small Non-Institutional Investors), bNII (Big Non-Institutional Investors).

Fundamental Analysis of Transrail Lighting IPO

Robust growth momentum in Transrail’s fundamentals indicates that shares will provide effective listing gains to the allottees. Let’s explore the fundamentals of Transrails Lighting IPO to know whether to apply or avoid it. 

1. Financial Health: 

The assessment of the financial health of a company is an effective way to analyse its competitiveness over other firms operating in the identical sector. Transrail Lighting Limited is operating with a good financial record as its revenue has increased by 30.2% between the year ended on 31st March 2023 and 31st March 2024. Moreover, around 116% of the rise in its PAT (Profit After Tax) is a key indicator that the stock is likely to deliver high returns to its investors. However, it is essential to conduct your own research before applying for an IPO. 

2. Technical Indicators

Strong technical indicators could be the signs of positive trends in any stock. They should be added to the list while researching Transrail Lighting Limited IPO. Have a look at them to add a kind of authenticity to your research on this IPO. 

*Data is updated as of 23rd December 2024. 

Transrail Lighting Limited’s share stands at an EPS of 15.42, which means the company makes around $15 for each share. Moreover, a good PE ratio and other technical indicators show its resilience and growth potential in the Indian stock market. Apply for Transrail Lighting IPO after considering these KPIs and conduct your own research to get updated information. 

3. Liquidity

The current ratio stands at 1.24, indicating that there is adequate liquidity in the shares of Transrail Lighting Limited and that the short-term objectives are achievable. And due to seasonal factors, the inventory turnover ratio shows a decline, which indicates that the company requires efficient inventory management. High liquidity in the shares of this company might offer investors effective returns. Moreover, the company has announced an IPO with 34.22% retail shares, which might increase the liquidity level after its listing on 27th December 2024. 

Transrail Lighting IPO Bidding Requirement

To place a bid or apply for Transrail Lighting IPO, investors should meet the minimum or maximum requirements specified in the table below.  

The above table indicates that investors can bid for a minimum of 34 shares in Transrail Lighting Limited IPO, but for S-HNI, the minimum limit is 476 shares. 

Aim of Transrail Lighting IPO 

Transrail Lighting Limited IPO aims to benefit the company in different ways. Here are the objectives of the company behind this issue. 

• Working Capital: The company aims to invest Rs 21.70 crore in its working capital requirements, which will help it meet revenue targets and achieve profit growth in the coming decades. 
• Capital Expenditure: Transrail is set to utilise around Rs 90 crores to purchase equipment like TSE machines and CNC machines, which might influence its power transmission and infrastructure projects. 
• General Corporate Requirements: The rest of the money will be invested for general purposes like setting up a new venture, marketing, and subsidiaries. 

Net proceeds from the shares will be invested into different corporate practices and will also make the company more efficient to compete against other firms operating in the same industry. 

Challenges Related to Transrail Lighting IPO 

Apart from several benefits, Transrail Lighting Limited IPO includes some challenges that might impact investors’ journey with it. Explore these challenges to make strategic decisions so as not to lose your invested capital. 

• Relies on Government Tenders: Transrail Lighting Limited generate 70% of its revenue through government tenders. Thus, any change in government policies or cancellation of a contract will impact business operations and performance. The company is required to secure its future contracts so as to deliver steady returns. 
• Fluctuations in Foreign Currency: Wide exposure with foreign clients offers the company a large part of its revenue in terms of dollars. However, fluctuation in prices of the US dollar might impact the overall revenue and profitability of the company. 
• Overrunning Cost: Transrail Lighting Limited faces cost overruns in EPC projects. Price escalation and unforeseen events might impact a company’s ability to perform better against its competitors. 

Note: Consider these challenges as the notable factors that may impact your returns in the coming years. Try investing with an effective strategy to deal with these risks/challenges.  

Transrail Lighting Limited IPO Peer Comparison

*Data is updated as of 23rd December 2024.

Experts Recommendations for Transrail Lighting IPO

Transrail Lighting Limited clicked a double-digit margin last year, and the trend should be sustained. ~ (MD and CEO of Transrail Lighting Limited) 

Expert analysts advised investors to apply for Transrail Lighting IPO because of its strong valuation and solid financial health. The positive cash flow of Transrail Lighting Limited encouraged investors to apply for this IPO. 

An exploration of its pros and cons will provide you with a clear picture of the IPO’s efficiency in delivering returns. Let’s explore them together. 

Pros of Transrail Lighting IPO

• Robust growth in the financial performance of Transrail Lighting Limited offers it resilience to sustain a competitive edge. 
• Effective global presence in around 58 foreign nations might offer a steady growth potential to the company, which may offer investors higher returns in the coming years. 
• Strategic manufacturing units of Transrail Lighting Limited offer it the potential to meet clients’ requirements by maintaining quality standards. 

Cons of Transrail Lighting IPO

• The company operates in a highly competitive business segment that includes well-established organisations that are already dominating the sector. It may cause competitive risk for investors in the coming decades. 

About Transrail Lighting Limited

Transrail Lighting Limited was incorporated in 2008 and is currently headquartered in Mumbai, Maharashtra. The company is focused on transmission of electricity and distribution of monopoles, lattice structures, and conductors. Besides this, Transrail is engaged in diverse business segments like civil construction, railways, and poles. 

The company not only completed more than 200 projects but also succeeded in establishing its presence across 58 foreign nations. These countries include Nigeria, Finland, Poland, Bangladesh, etc. Its facilities are ISO 9001:2015 certified to meet quality standards. Moreover, the company is also certified for its health management systems, environment management systems, and communication security systems. As of June 2024, Transrail Lighting Limited supplied 1.3 million metric tonnes of towers and 4,58,705 poles to its customers. 

Transrail Lighting Limited Financials

The strong financial performance of a company might encourage investors to apply or bid for an IPO. Thus, it could be a reason behind the increase in Transrail Lighting Limited IPO subscription. Have a look at the company’s financial statement to analyse its potential to compete in the market. 

*Data is updated as of 23rd December 2024. 

Explanation: The revenue of Transrail Lighting Limited surged by 30.2% in FY23-24. Moreover, profit after tax rose by 116.8% during the same time period. The net worth of this organisation stands at Rs 1,140.65 crores as of June 2024, and market capitalisation remains at Rs 5,7,99.86 crores.  

How to Apply for Transrail Lighting IPO 

Applying for an IPO is not a complex procedure. You just need to follow the steps mentioned below. 

• Check for Details: Have a look at the IPO details like issue size, offer, lot size, GMP, subscription status, etc. 
• Demat Account: Log in to your trading account using credentials and navigate to the IPO section. 
• Select and Apply: Choose Transrail Lighting Limited IPO from the provided list and click on the apply button to submit a request. 
• Confirm Application: Approve the UPI mandate request to apply for Transrail Lighting IPO and wait for the allotment status to be declared. 

How to Check Transrail Lighting Limited IPO Allotment 

After applying for Transrail Lighting IPO, investors are required to know about the allotment status. There are two different ways to know about the allotment status. Applicants can check it from the official BSE website or the registrar portal. Let’s explore both of them. 

Check Allotment Status Through BSE 

Follow the steps below to check Transrail Lighting IPO allotment status on BSE’s official website. 

Step 1: Visit the official website of BSE through <https://www.bseindia.com/investors/appli_check.aspx>

Step 2: Select Issue Type as Equity to proceed. 

Step 3: Scroll down through issue names and select Transrail Lighting Limited IPO.

Step 4: Choose the mode from application no. or PAN. 

Step 5: Submit your information.

Check Allotment Status on the Registrar Portal

Here are some steps you can take to know your Transrail Lighting IPO allotment status on the registrar portal. 

• Step 1: Visit the registrar’s website through <https://linkintime.co.in/Initial_Offer/public-issues.html>.
• Step 2: Select Transrail Lighting Limited IPO from the menu. 
• Step 3: Select the option to check the allotment status from the application no./demat account/PAN. 
• Step 4: Fill in the required details to proceed further. 
• Step 5: Enter the captcha and click on the submit button. 

Transrail Lighting IPO allotment status will be displayed on your screen. 

Let’s Wrap

Transrail Lighting Limited IPO, which opened on 19th December 2024, will be listed on both stock exchanges, i.e., BSE and NSE. The company operates in 58 nations, and its impeccable project completion exceeds 200. Link Intime India Pvt. Ltd. is the registrar of this IPO and is responsible for allotment and refund procedures. 

This issue comprises a fresh issue of 93,00,000 shares and an offer for sale of 1,02,00,000 shares. The company is set to raise Rs 838.91 crores from the market. Conduct research on details, live GMP, and subscription status to apply for Transrail Lighting IPO and earn higher returns from its listing. 

FAQs Of Transrail Lighting IPO

1. Who is the registrar of Transrail Lighting IPO?

Ans. Link Intime India Pvt. Ltd. is the registrar of Transrail Lighting Limited IPO. It plays a crucial role in ensuring seamless IPO allotment and refund initiation for investors. For any query on allotment and refund, reach out to transrailingLighting.ipo@linkintime.co.in. 

2. How can I check the Transrail Lighting IPO allotment status?

Ans. To check for the Transrail Lighting IPO allotment status, you should consider the steps mentioned below. 

Step 1: Visit the official BSE website or registrar portal.  

Step 2: Select Issue Type as Equity to proceed. 

Step 3: Scroll down through issue names and select Transrail Lighting Limited IPO.

Step 4: Choose the mode (application no. or PAN). 

Step 5: Submit your information.

Step 6: Allotment status will be displayed on your screen.

3. When will Transrail Lighting IPO list?

Ans. The listing date for Transrail Lighting Limited IPO is prescribed as 27th December 2024, and investors have a positive outlook towards its listing. 

4. What is the current GMP of Transrail Lighting Limited IPO?

Ans. As of now, on 23rd December 2024, Transrail Lighting IPO GMP stands at Rs 182, which indicates that the estimated listing price would be Rs 614. As per the recorded GMP, the IPO is expected to offer 42.13% gains to the allotees. GMP changes on a daily basis, and it is essential for investors to stay informed about the live GMP updates before applying for the IPO. 

5. What does Transrail Lighting Limited do?

Ans. Transrail Lightning Limited is engaged in power transmission and manufacturing of monopoles, lattice structures, and conductors. Moreover, the company operates in diverse business segments like civil construction, railways, and poles. As of June 2024, Transrail successfully accomplished over 200 projects and was exposed to 58 foreign nations in delivering its services.  

6. Is Transrail Lighting Limited IPO a fresh issue?

Ans. Transrail Lighting IPO is partially a fresh issue as it offers around 93,00,000 shares as a fresh issue and 1,02,00,000 shares through OFS (Offer for Sale). The shares of fresh issue in this IPO are worth around Rs 400 crores. 

7. What is the allotment date of Transrail Lighting Limited IPO?

Ans. The Transrail Lighting IPO allotment date has been finalised as 24th December 2024, and the registrar of this IPO (Link Intime India Pvt. Ltd.) is expected to ensure a smooth allotment procedure. One can check for the allotment status on BSE’s official website or on the registrar portal by submitting the required information. 

8. What is the issue size of the Transrail Lighting IPO?

Ans. Transrail Lighting IPO is a book-built issue, and the company is about to raise Rs 838.91 crore. In total, 1,94,19,259 shares are offered, of which 93,00,000 shares (worth Rs 400.00 crore) are issued under fresh issue and 1,02,00,000 shares (worth Rs 438.91 crore) are issued under OFS (Offer for Sale).