Transrail Lighting IPO: Know GMP Today, Know Whether You Should Buy Or Not 

The public offer for Transrail Lighting is a book-built issue with a total IPO size of 838.91 crores. This offer includes a fresh issue worth 400 crores, representing 0.93 crore shares, and an offer for sale (OFS) for the remaining portion worth 438.91 crore, representing 1.02 crore shares. 

The initial public offer of Transrail Lightning was opened for subscription on 19th December 2024 and is set to close today on 23rd December 2024. It is a mix of offer for sale and fresh issue with a price band of Rs 410 to Rs 432. The minimum number of shares required to be subscribed is 34, and the minimum investment amount required is Rs 13,940. 

Transrail Lightning Limited IPO GMP Updates

As of 23rd December 2024, the shares of Transrail Lightning are trading at a Grey Market Premium (GMP) of Rs 180, which indicates a strong market debut on D-street on the listing day of 27th December 2024. With a cap price of Rs 432, the shares of Transrail Lightning are expected to be listed at Rs 612. Refer to the table below for GMP updates. 

Transrail Lightning IPO Subscription Status

Transrail Lightning offered a total of 1.37 crore equity shares for subscription. The public offering currently stands at a subscription status of 8.05 times. In the retail segment category, it was subscribed 9.17 times, followed by the NII category 15,27 times and the QIB category 1.37 times. 

Transrail IPO has reserved a portion for employees, equating to a sum of Rs 190 million and more than 50 per cent of the shares offered are reserved for qualified institutional buyers (QIB) and not less than 15 per cent for non-institutional investors (NII). 

Transrail Lightning Limited IPO Details 

About Transrail Lightning Limited 

Transrail Lightning is an engineering company that was established in February 2008. Its business is forayed into four verticals: transmission and distribution, civil construction, railways, and poles and lightning.

It has a strong presence in over 50 countries spanning over four continents – America, Europe, Africa, and Asia. Transrail Lightning has completed over 200 projects alone in the power transmission and distribution segment both in India and internationally. 

Financial of Transrail Lightning Limited

The results of the Transrail IPO present a strong image of its financial health. It has experienced growing revenue figures since 2022. In 2022, the organisation’s revenue stood at Rs 2,284.14 crore, and in 2024, it had a revenue figure of Rs 4,009.23 crore. 

A similar trend can be seen in the profitability, where Transrail Lightning Limited has earned a positive revenue of Rs 233.20 crore, which is higher than the profits of 2023 and 2022. 

Should Apply For Transrail Lightning Limited IPO?

Pros

1. Financial Stability – The company has performed well in past years, resulting in stable financial health and a strong positioning in the industry.

2. Global Presence and Track Record – The company operates in 58 countries across 4 major continents and has a substantial performance track record. It has global footprints in countries like Bangladesh, Kenya, Niger and many others. 

3. Strategic Manufacturing Facilities – Transrail Lightning Limited has manufacturing facilities in 4 strategic areas of India. These facilities are spread over the Deoli Plant (Towers), Vadodara Plant (Towers), Silvasa (Conductors) and Silavasa Plant (Poles).

Cons 

1. High Competition – The industry in which Transrail Lightning Limited operates has a high amount of competition because various well-established organisations already dominate the industry. 

2. Dependency on Large Projects – Transrail Lightning Liited generates a substantial amount of its revenue from large manufacturing and construction projects, which may increase the risk for investors.