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PremiumTransrail Lighting Share Price Live Updates: Transrail Lighting's share price listed at a premium of nearly 40 per cent on the BSE and NSE. However, post-listing at a hefty premium, the stock witnessed some profit booking. It ended the day 5% below its listing price on the BSE and 6 per cent on the NSE. However, from its IPO price of ₹432, the stock was still up 28 per cent.
Transrail Lighting's initial public offering (IPO) was oversubscribed by 80.80 times on the final day of the sale on Monday. The company secured ₹246 crore from anchor investors. This ₹839-crore IPO had a share price range set between ₹410 and ₹432. The offering consists of a fresh issuance of shares amounting to ₹400 crore, in addition to an Offer-for-Sale of 1.01 crore equity shares by the promoter, Ajanma Holdings Pvt Ltd.
The funds raised from the fresh issue will be allocated to cover increasing working capital needs, to finance capital expenditures, and for general corporate activities. Transrail Lighting is recognized as one of the top Indian engineering, procurement, and construction (EPC) firms, primarily concentrating on the power transmission and distribution sector and has integrated manufacturing capabilities for lattice structures, conductors, and monopoles.
Transrail Lighting shares ended the session at ₹554.50 on the NSE, down 6.02 per cent against the listing price of ₹590 apiece. However, the stock was still up 28 per cent against its issue price of ₹432.
Similarly, on BSE, the stock closed at ₹554, down 5% from its listing price of ₹585.15.
Transrail Lighting has reported a remarkable financial performance for the year ending March 31, 2024, with total revenue surging by 30.20%. The company’s revenue increased from ₹31,720.34 million in the previous financial year to ₹41,299.99 million in FY 2024.
In addition to the revenue growth, Transrail Lighting posted a significant rise in its annual profit. The company's profit for FY 2024 stood at ₹2,332.05 million, a substantial improvement compared to ₹1,075.68 million in the previous year.
2008-10
Transrail Lighting Limited was incorporated as a wholly owned subsidiary of Associated Transrail Structures Limited.
Associated Transrail Structures Limited merged with Gammon India Limited with effect from 7 July 2009.
2015-2016
Ajanma Holdings Private Limited (formerly Bilav Softwares Private Limited) acquired 75% in Transrail Lighting Limited. Resultantly, Ajanma Holdings Private Limited owns 75% and Gammon India Limited owns 25% equity shares of Transrail Lighting Limited.
Business Transfer Agreement and Scheme of Arrangement for the transfer of T&D business from Gammon India Limited to the Company 2023-24.
2023-2024
Digambar Bagde and Sanjay Verma named as promoters, along with Ajanma Holdings Private Limited, of Transrail Lighting Limited vide board resolution dated 6 February 2024.
The company has strong fundamentals, and the stock was offered at attractive valuations. However, the stock still possesses upside potential in the medium to long term. So, those with medium to long-term views can hold the stock, maintaining a buy-on-dips strategy. To minimise one's risk, one can book partial profit and use that money to add more on big dips after the profit-booking trigger.
The company's business is divided into four verticals:
(i) power transmission and distribution
(ii) civil construction
(iii) poles and lighting
(iv) railways
The details of contribution to revenue from operations by each vertical a set out below:
Around 1.25 pm, Transrail Lighting share price traded 2 per cent below its listing price of ₹585.15. The stock was at ₹573.05 on BSE at this hour.
Digambar Chunnilal Bagde is the Executive Chairman of our Company. He holds a Bachelor of Engineering degree in Civil Engineering from Maharaja Sayajirao University of Baroda and has over 40 years of experience in the EPC industry. He has previously been associated with Transrail Engineering Company Limited, Associated Transrail Structures Limited, and Gammon India Limited as Deputy Managing Director - Transmission and Distribution.
Randeep Narang is the Managing Director and CEO of our Company. He holds a Bachelor’s degree in Commerce from the University of Delhi and a post-graduate diploma in Marketing from the Institute of Marketing Management, New Delhi. He has over 35 years of experience in marketing and T&D and has previously worked with Bharti Airtel Limited, CEAT Kilani Holdings, and KEC International Limited.
Sanjay Kumar Verma is the Non-Executive Director of our Company. He holds a diploma in Computer Systems and Networks from Khaikov State Polytechnical University, Ukraine. With approximately 8 years of experience in business administration, consulting, commodity trading, and specialized technology, he has worked with Arthur D. Little India and Fair Commodities Trading S.A. He currently serves as a director on multiple company boards.
Srikant Chaturvedi is the Non-Executive Director of our Company. He holds a Bachelor’s degree in Commerce from Kishori Raman College, Mathura, and has over 42 years of experience in chartered accountancy. He is a partner at Chaturvedi S K & Fellows LLP and a member of the Institute of Chartered Accountants of India.
Vita Jalaj Dani is the Non-Executive (Nominee) Director of our Company. She holds a Bachelor’s degree in Arts from St. Xavier’s College, Mumbai University, and has over 12 years of experience in executive roles. She is associated with several companies, including Asian Paints Limited and Chennaiyin F.C. Sports Private Limited.
Vinod Dasari is the Independent Director of our Company. He holds a Master’s degree in Engineering Management and an MBA from Northwestern University, USA. With several years of executive experience, he has previously served as CEO of Royal Enfield Motors Limited, Managing Director of Ashok Leyland Limited, and Joint Managing Director of Cummins India Limited.
Ashish Gupta is the Independent Director of our Company. He holds a Bachelor’s degree in Civil Engineering from Nagpur University, a law degree from Chaudhary Charan Singh University, Meerut, and an MBA from S.P. Jain Institute of Management & Research. He has over 30 years of experience in operations and has previously worked with Gammon Engineers & Contractors, Vensar Construction, and Hindustan Construction Company.
Ravita Nirmal Punwani is the Independent Director of our Company. She holds a Bachelor of Science degree in Home Science from the University of Bombay and a diploma in Advertising and Public Relations from K.C. College of Management Studies. With 26 years of experience in human resource consultancy, she has worked with ATV Projects India, Britannia Industries, and Hotel Corporation of India. She is also a partner at Technical System Corporation.
Ranjit Jatar is the Independent Director of our Company. He holds a Bachelor’s degree in Commerce (Honours) from Shri Ram College of Commerce, University of Delhi, and is a member of the Institute of Chartered Accountants of India. He has 9 years of experience in finance, having previously worked with Eicher Motors Limited and Pepsico India Holdings.
Major General Dr. Dilawar Singh (Retd.) is the Independent Director of our Company. He holds a doctorate in Philosophy from G.H. Patel Post Graduate Institute of Business Management, Sardar Patel University, Gujarat. With 35 years of experience in defense services, he was previously associated with the Ministry of Youth Affairs & Sports as Director General, Nehru Yuva Kendra Sangathan.
Transrail Lighting Limited is an Indian engineering, procurement and construction (“EPC") company. Which primarily focuses on power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles. The company demonstrated consistent growth in revenue and profitability. The IPO is attractively priced based on its PE ratio. The company made a quiet stock market debut, listing at a significant 36% premium over its issue price of Rs. 432. Those who took part in the initial public offering (IPO) may take listing gains profit.
Transrail ranks 4th in terms of operating revenue. Transrail reported a significant revenue growth of 29.3% in fiscal 2024. Similarly, the net profit margins are higher than most of its peers, indicating a stable profitability position. The company operates with lower capital employed, coupled with robust EBITDA levels, resulting in a strong ROCE of 27.1%, which is the highest among the companies disclosed above.
- Funding incremental working capital requirements
- Funding capital expenditure of the company
- General corporate purposes
Transrail Lighting is an engineering, procurement, and construction (EPC) company primarily focused on the power transmission and distribution sector, along with integrated manufacturing facilities for lattice structures, conductors, and monopoles. With a track record spanning four decades, the company provides comprehensive turnkey solutions in the power transmission and distribution sector globally.
It has completed over 200 projects in this vertical, showcasing its extensive project execution capabilities in terms of manpower, material supply (including self-manufactured products), and world-class machinery, both in India and internationally, particularly across Asia and Africa.
The company's strong position in the power transmission and distribution sector is backed by our footprint in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, Nicaragua, and more, with a mix of turnkey EPCs and supply projects.
As of June 30, 2024, it had undertaken the EPC of 34,654 circuit kilometers (CKM) of transmission lines and 30,000 CKM of distribution lines, both domestically and internationally.
Transrail Lighting share price witnessed some profit booking after solid stock market debut. The stock traded at ₹581.45 as against the listing price of ₹590 on the NSE.
Transrail Lighting Limited had a strong debut on the Indian stock market, with its share price opening at ₹585.15 on the BSE and ₹590 on the NSE. The stock delivered a listing gain of approximately 36% to the allottees.
Transrail Lighting shares traded at a premium of 36.57% on the NSE in the pre-open session while on the BSE, they were at a premium of 35.45%.
Transrail Lighting IPO was subscribed 81.98 times at the end of the 3-day bidding process. The public issue was subscribed 22.62 times in the retail category, 197.41 times in QIB, and 78.31 times in the NII category.
The Transrail IPO generates significant investor interest, with a strong subscription of 81.98 times and a robust grey market premium (GMP) of ₹175 (40.5%). As an engineering and construction company specializing in the transmission and distribution sector, Transrail boasts years of experience and a strong global presence. The company has demonstrated consistent growth in revenue and profitability, and the IPO is attractively priced based on its P/E ratio. Given the strong fundamentals, robust subscription, and attractive GMP, Transrail is poised for a strong market debut.
Transrail Lighting IPO GMP today is ₹167, which means the grey market expects the IPO listing price to be around ₹597, a premium of 38% over the issue price of ₹432.
Transrail Lighting closed for subscription on 23rd December after garnering an overall subscription rate of 80.80 times over its issue size. The robust subscription rate indicates an attractive GMP of 39% over its upper price band. Given its strong order book, the company ensures stable revenue growth, further supported by a mix of international and domestic clients. Furthermore, plans to diversify into allied infrastructure sectors and the solar EPC industry will broaden its market reach and reinforce its position in the infrastructure sector. Given its strong position in the market, the company is poised to capitalize on emerging market opportunities. Thus, we recommend that participants allot the shares to remain invested from a medium- to long-term perspective.
Transrail Lighting will be included and authorized for trading on the Exchange under the 'B' Group of Securities, according to the circular notice from BSE. Additionally, trading members should be aware that the aforementioned stock will participate in the Special Pre-open Session (SPOS) scheduled for Friday, December 27, 2024.
