Transrail Lighting Limited is coming up with an IPO consisting of a fresh issue of 0.93 crore shares worth INR 400 crores and an offer to sell 1.02 crore existing shares worth INR 438.91 crores. The company aims to fund incremental working capital, capital expenditures, and general corporate purposes. 

Transrail Lighting IPO – Important Dates 

Read more about Transrail Lighting Limited IPO GMP

Transrail Lighting Limited IPO – Company Profile 

Transrail Lighting Limited is an Indian EPC company specialising in power transmission and distribution. It has four decades of experience, over 200 completed projects, and integrated manufacturing facilities for lattice structures, conductors, and monopoles globally. 

Its strong position in power transmission and distribution is due to its presence in 58 countries, undertaking EPC of 34,654 CKM transmission lines, 30,000 CKM distribution lines, and substations up to 765 kV globally. 

The company is active in all power transmission and distribution segments, primarily focusing on HV and EHV. Apart from power transmission, they have diversified business verticals, including civil construction, poles and lighting, and railways, further enhancing their industry presence. 

Transrail Lighting Ltd IPO Fundamental Analysis 

Transrail Lighting Limited’s financial analysis reveals a mixed performance. Revenue has shown growth, while liabilities and debt-equity ratios have increased. Despite efficient inventory management, profitability and EPS have decreased, with declining RoNW and weakened liquidity. 

• Revenue Trend: The revenue increased from ₹22,841.42 millions in March 2022 to ₹30,861.37 millions in March 2023. The revenue for the current year’s 3-month period ending June 2024 is INR 8,969.03 million. 
• Equity and Liabilities: Liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹647.07 million in March 2022 to ₹517.44 million by June  2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹11.62 in March 2022 to ₹4.17 by June 2024, reflecting lower earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has decreased from 10.80% to 4.54%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest faster sales or efficient inventory management. 

Check out the other upcoming IPOs this month:

Transrail Lighting IPO Financial Analysis 

Transrail Lighting Limited IPO Peer Comparison 

Transrail Lighting Limited, KEC International, Kalpataru Projects, Skipper, Patel Engineering, and Bajel Projects show varying financial performances across revenue, profitability, return ratios, and inventory turnover, with Transrail Lighting leading in specific metrics. 

Transrail Lighting Ltd IPO Objective 

The main objective of Transrail Lighting Limited is to fund the company’s incremental working capital requirements and capital expenditures. 

1. Funding the company’s incremental working capital requirements: The company intends to utilise INR 21.70 crores from the Net Proceeds to fund its incremental working capital requirements for FY 2025 and 2026, supporting revenue growth, profitability, and achieving business targets. 

2. Funding capital expenditure requirements of the company: The company plans to utilise INR 90.86 crores for procuring equipment, including CNC machines and stringing TSE machines, to enhance manufacturing capabilities and support its growing EPC portfolio for transmission and infrastructure projects. 

3. General Corporate Purposes: The company will deploy funds for general corporate purposes, including investments in subsidiaries, new business ventures, marketing in new markets like the USA and Australia, research in energy and construction, and strategic initiatives. 

Transrail Lighting IPO Risks And Challenges 

Transrail Lighting Limited’s risks include potential time and cost overruns in EPC projects, reliance on government tenders for 70% of revenue, and exposure to foreign currency fluctuations, notably the US Dollar, which can affect costs and operations. 

• The company faces potential time and cost overruns in long-term EPC projects due to price escalation, delays, currency fluctuations, and unforeseen events. Past projects have experienced significant delays and additional costs. 

• The company relies on government tenders for approximately 70% of its revenue. Changes in government policies, delays, or cancellations of contracts could adversely impact its business, cash flows, operations, and ability to secure future contracts. 

• The company generates nearly 50% of its revenue from international operations, with exposure to foreign currencies, notably the US Dollar. While it hedges some foreign currency risk, fluctuations may impact costs and operations. 

Transrail Lighting Ltd IPO – Industry & Market Potential 

Incremental power demand from railway electrification, metro rail, and EV adoption is expected to grow significantly between fiscal 2025 and 2029. Railway electrification will account for 23 BUs (around 46%), metro rail 5-6 BUs (10-12%), and EVs 12-13 BUs (24-26%) annually. 

India’s peak electricity demand rose from 184 GW in fiscal 2020 to 243 GW in fiscal 2024, averaging a 7.3% annual growth. It is projected to increase by 5-6% annually, reaching approximately 318 GW by fiscal 2029. 

India’s installed generation capacity reached ~442 GW in fiscal 2024, with renewables comprising 33%. Over fiscal 2025-2029, 32-35 GW of conventional capacity and 320 GW of renewables are expected, including 23-24 GW of BESS. 

Transrail Lighting Limited IPO – Type of Offer 

Transrail Lighting Limited plans a fresh issue of 0.93 crore shares, seeking INR 400 crores to fund incremental working capital, capital expenditure, and general corporate purposes. Additionally, the company proposes an offer to sell 1.02 crore existing shares worth INR 438.91 crores. 

1. Fresh Issue: The company will issue 0.93 crore new shares to raise capital, aiming to collect INR 400 crores. The company intends to utilise the proceeds from the fresh issue to fund incremental working capital, capital expenditure, and general corporate purposes.
2. Offer for sale: Transrail Lighting Limited is offering to sell 1.02 crore existing shares worth INR 438.91 crore. The following are the details of the existing shareholders who are also the promoters selling the shares:

Transrail Lighting IPO Offer Size 

The offer size of Transrail Lighting Limited is 838.91 crores, consisting of a fresh issue of 0.93 crore shares worth INR 400 crores and an offer to sell 1.02 crore existing shares worth INR 438.91 crore. The company aims to fund incremental working capital, capital expenditures, and general corporate purposes. 

Transrail Lighting Limited IPO Allotment Structure 

Transrail Lighting Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. A portion is set aside for eligible employees. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Eligible Employees: A portion is set aside for eligible employees. 

How to apply for Transrail Lighting IPO?

To apply for the Transrail Lighting Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Transrail Lighting Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Transrail Lighting Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Transrail Lighting IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Transrail Lighting Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Transrail Lighting Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Transrail Lighting Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Transrail Lighting Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Transrail Lighting Ltd IPO Offer Registrar

The registrar for the Transrail Lighting Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited 

C 101, 1st Floor, 247 Park L.B.S Marg 

Vikhroli (West), Mumbai 400 083 

Maharashtra, India 

Tel: +91 22 810 811 4949 

E-mail: [email protected] 

Website: www.linkintime.co.in 

Transrail Lighting SME IPO – FAQs