Transrail Lighting IPO opens on December 19; GMP, price, and other key details in 10 points

Transrail Lighting IPO: The initial public offering (IPO) of engineering, procurement, and construction company Transrail Lighting will open for public subscription on Thursday, December 19, and will remain so till Monday, December 23. The book-built issue combines a fresh issue of 93 lakh shares to raise ₹400 crore and an offer for sale (OFS) of 1.02 crore shares.

Transrail Lighting IPO key details

As the Transrail Lighting IPO is set to open on Thursday, let’s take a look at ten key details of the mainboard issue:

1. Transrail Lighting IPO GMP: According to stock market sources, the last grey market premium (GMP) of the Transrail Lighting IPO was ₹120, which indicates investors are positive about the stock. Considering the last GMP and the upper price band of the issue at ₹432, the stock is expected to be listed at a premium of 27.78 per cent at ₹552 on the Indian stock exchanges.

2. Transrail Lighting IPO price band: The issue’s price band has been set at ₹410 to ₹432 per share.

3. Transrail Lighting IPO date: The mainboard IPO is opening for subscription on Thursday, December 19, and will close on Monday, December 23.

4. Transrail Lighting IPO size: The ₹839 crore issue offers 1.93 crore shares. This comprises a fresh issue of up to 0.93 crore shares, aggregating to ₹400 crore, and an offer for sale of 1.02 crore shares, amounting to ₹439 crore.

5. Transrail Lighting IPO lot size: The minimum lot size for an application is 34 Shares. With the issue’s upper price band at ₹432, the minimum amount of investment required by retail investors is ₹14,688.

6. Transrail Lighting IPO allotment date: The company will finalise the share allotment a day after the IPO closing date. Since the issue closes on Monday, December 23, the share allotment will be finalised by 6 PM on Tuesday, December 24.

7. Transrail Lighting IPO book-running lead managers and registrar: Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Market Services are the book-running lead managers of the Transrail Lighting IPO, while Link Intime India is the registrar for the issue.

8. Transrail Lighting IPO listing: According to the T+3 rule, the company’s shares must be listed after three business days from the IPO closing day. So, the stock will be listed on Friday, December 27, on the BSE and the NSE.

9. Object of the issue: The company intends to use the net proceeds for funding incremental working capital requirements, capital expenditures (capex), and general corporate purposes.

10. Company overview: Transrail Lighting is one of the leading Indian engineering, procurement, and construction (EPC) companies with a primary focus on power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles.

Its total revenue grew to ₹31,720.34 million in FY23 from ₹21,921.73 million in FY21, at a CAGR of 20 per cent. Profit for the year also increased to ₹1,075.68 million in FY23 from ₹981.81 million in FY21, reflecting a CAGR of 5 per cent.

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