Transrail Lighting Limited, a prominent Indian engineering, procurement, and construction (EPC) company specializing in power transmission and distribution, is launching its initial public offering (IPO) to raise ₹839 crore.The IPO is scheduled to open on December 19, 2024, and close on December 23, 2024.
IPO Details:
- Issue Size: The IPO comprises a fresh issue of shares worth ₹400 crore and an offer for sale totaling ₹439 crore.
- Price Band: The shares are priced between ₹410 and ₹432 per equity share.
- Lot Size: Investors can bid for a minimum of 34 shares and in multiples thereof. At the upper price band, the minimum investment amounts to ₹14,688 per lot.
- Allocation: 50% of the net offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
- Listing Date: The shares are expected to be listed on both the NSE and BSE, with a tentative listing date of December 27, 2024.
Company Overview:
Transrail Lighting has a robust presence in the power transmission and distribution sector, with operations extending to 58 countries. As of June 30, 2024, the company has completed over 200 projects, including the engineering, procurement, and construction of 34,654 circuit kilometers of transmission lines and 30,000 circuit kilometers of distribution lines.
Financial Performance:
- Revenue: Increased by 29.3% to ₹4,076.5 crore in FY24 from ₹3,152.2 crore in FY23.
- Net Profit: Rose to ₹233.2 crore in FY24 from ₹107.6 crore in FY23.
Objectives of the IPO:
- Funding incremental working capital requirements.
- Financing capital expenditures.
- General corporate purposes.
Investor Considerations:
Investors should be aware of the company’s heavy reliance on government contracts, which constituted 70% of its revenue as of June 30, 2024.Additionally, the top ten clients accounted for 67.5% of the total revenue in Q1 FY25, indicating a concentration risk.
Disclaimer-
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