Transrail Lighting Limited is an engineering and construction company focused on power transmission and distribution and manufacturing lattice structures, conductors, and monopoles. Transrail Lighting IPO intends to raise Rs. 838.91 crores. The issue is a combination of fresh issue and OFS.
IPO opens
December 19, 2024
IPO Closes
December 23, 2024
IPO Size (Rs.)
₹838.91 Cr
Breakup
Fresh ₹ 400.00 Cr+ OFS ₹438.91 Cr
Face Value:
₹ 2
IPO Price in Rs :
₹410 to ₹432 per share
Minimum Lot
34 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Inga Ventures ., Axis Capital Ltd., HDFC Bank ,IDBI Capital Markets
Registrar
Link Intime India Pvt Ltd.
About Transrail Lighting:
The company is Indian engineering, procurement and construction company focusing primarily on power transmission and distribution business (T&D) and integrated manufacturing facilities for lattice structures, conductors, and monopoles.
The company also provides EPC services in relation to air insulated and gas insulated substations.
The company has a track record of 4 decades in providing comprehensive solutions in the power T&D sector, on a turnkey basis globally.
The company’s business is divided into 4 verticals,
(i) power transmission and distribution, (ii) civil construction, (iii) poles and lighting, and (iv) railways.
The company set up first manufacturing facility in Vadodara for galvanized lattice steel towers in 1994. Company opened another facility in Deoli, Maharashtra for galvanized steel towers in 2009. The company then set up two manufacturing sites in Silvassa, Dadra and Nagar Haveli in 2007 and 2010 for conductors and poles.
Promoters are Ajanma Holdings Private Limited, Digambar Chunnilal Bagde and Sanjay Kumar Verma.
Financials : Transrail Lighting IPO
Particulars/ Rs Cr.
2024 (3)
2024 (12)
2023(12)
2022(12)
Total Income
929.7
4,130.00
3,172.03
2,357.20
Revenue from Operations
915.78
4,076.53
3,152.16
2,350.02
Revenue Growth (%)
–
29.32%
34.13%
7.53%
EBITDA
120.11
477.56
293.94
205.67
EBITDA Margin (%)
13.12%
11.71%
9.32%
8.75%
Net Profit
51.74
233.21
107.57
64.71
Net Profit (%)
5.57%
5.65%
3.39%
2.75%
Share Capital
24.79
24.79
22.8
22.71
Net Worth
1,140.65
1,075.87
709.15
599.32
Total Borrowings
603.43
643.19
604.92
469.12
ROCE (%)
6.02%
24.33%
18.27%
14.94%
NAV (₹)
92.02
86.79
62.21
52.78
Post issue Share Capital
26.85
FV
2.0
IPO price
432.0
EPS Fy24
17.4
PE
24.9
EPS Fy25 (annualized)
15.4
PE (annualized)
28.0
Market cap in cr.
5,800
Market cap / Sales
1.42
Anchor: Transrail Lighting IPO
Transrail Lighting Ltd has mobilised Rs 246 crore from anchor investors. This included names like ICICI Prudential Mutual Fund, Tata Mutual Fund, Winro Commercial (India) Ltd, Bengal Finance and Investments, SBI General Insurance Company and LIC Mutual Fund.
Salient Points: Transrail Lighting IPO
Government’s is laying lot of thrust on the revamped distribution sector scheme which augurs well for the company.
Use of Net proceeds: It will utilize Rs. 250 cr. for working capital, Rs. 90.73 cr. for capex funding and the rest for general corporate purposes.
Transrail Lighting Limited has completed more than 200 projects in power transmission and distribution vertical, along with comprehensive and extensive project execution capabilities both in India and internationally.
Company forayed into underground cabling and substations, and has a comprehensive execution profile for overhead transmission lines, monopole lines, underground cables, distribution networks as well as sub-stations.
The company generates about 83% gross revenues from power transmission and distribution, 10% from Civil constructions, 2% from railways and the rest from Poles and lighting.
Peers
Particulars (Rs cr)
Sales
EBITDA
EBITDA(%)
Net Profit
NPM %
PE (x)
Mcap/ Sales
RoE (%)
Transrail Lighting
4,077
475
11.7
230.9
5.7
24.9
1.4
24.4
KEC International
19,914
1,353
6.8
347
1.7
78.2
1.6
8.8
Kalpataru Projects
19,626
1,814
9.2
516
2.6
42.3
1.1
10.4
Skipper Ltd.
3,282
321
9.8
75
2.3
59.1
2.0
9
Patel Engineering
4,544
690
15.2
290
6.4
16.6
1.1
7.5
Bajel Projects
1,169
16
1.4
4
0.3
117
2.8
0.9
Transrail’s around 12% EBITDA margin of FY24 is higher than peers.
PE (FY25 annualized) 28x ; PE FY24 24.9x.
The company has a track record of 4 decades in providing comprehensive solutions in the power transmission and distribution sector, on a turnkey basis both in India and globally.
The company has a footprint in 58 countries such as Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, Nicaragua, etc.
They have developed extensive pre-qualifications in power transmission and distribution business owing to our extensive experience in the sector which is reflected in their strong order book.
The company’s order book of Rs 10,213 cr as of Jun’24 is more than twice of its FY24 revenues which provides good revenue visibility.
On the flip side it may have some implications from Bangladesh crisis.
In Sep 2024, Transrail raised Rs. 50 cr via pre-IPO placement, at Rs. 484 per share. The IPO is priced at a discount to this price.
Transrail’s 12% EBITDA margin of FY24 is higher than Kalpataru (8%), KEC (6%), Skipper (10%) as well as Bajel (6%
I intend to apply in Transrail Lighting IPO. Government’s thrust on the revamped distribution sector scheme bodes well for the company and they have a good order book to be executed in next 2 years.
GMP as reported in media is Rs. 186 (43%)
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
