Transrail Lighting IPO: GMP, subscription status; should you apply as issue ends today?
Transrail Lighting IPO, worth ₹400 crore, closed for subscription on December 23. The issue priced in the range of 410 to ₹431 per share witnessed strong subscriptions from all three categories of investors.
Transrail Lighting's initial public offering (IPO) closed for public subscription on Monday, December 23. The public issue opened for bidding on Thursday, December 19. The company has fixed the price band for the public issue in the range of ₹410 to ₹431 per share, with a lot size of 34 shares per lot.
Transrail Lighting IPO latest GMP
As of December 22, the grey market premium (GMP) for the Transrail Lighting public issue is at ₹175 per share. With the upper price band for the issue at ₹432, the shares are expected to be listed at ₹607 per share, a premium of 40.51 per cent, according to the data collected from Investorgain.com.
Grey market premium (GMP) is an indicator of the investors' willingness to pay more for a public issue. The GMP fell to its current level on December 21, and as of the publishing of this article is at ₹175. Earlier the GMP rose to ₹185 on December 19.
Transrail Lighting IPO subscription data
The initial public offering of Transrail Lighting received strong subscriptions from all three investor categories. Overall, the IPO was subscribed 80.80 times at the end of the third day.
The non-institutional investors (NIIs) portion was booked 76.41 times, while the retail investors' portion was subscribed 22.07 times. The qualified institutional buyers (QIBs) quota was booked 201.06 times the shares available on the third day.
Transrail Lighting IPO Apply or not?
Assigning a “Subscribe - Long Term” rating to the initial public offering of Transrail Lighting, stock brokerage Anand Rathi said, “The growing demand for power, coupled with government initiatives, has driven the need for transmission and distribution lines. The company is well-positioned to supply T&D products and efficiently manage multiple projects across various countries. We believe that the issue is fairly priced.”
“At the upper band company is valuing at 24.8x its FY24 EPS. Following the issuance of equity shares, the company's market capitalization stands at ₹57,998.6 million, with a market cap-to-sales ratio of 1.4 based on its FY24 earnings,” said the analysts.
The company aims to use the ₹400 crore raised from the fresh issue towards funding working capital requirements, capex requirements, and general corporate purposes. The issue is set to open on December 23 for its final bidding day; the shares are expected to be listed on Friday, December 27.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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