Transrail Lighting IPO Closes: Check Subscription Status, GMP Today
Transrail Lighting’s ₹839 crore IPO closed on December 23 with a strong public subscription. The IPO saw a remarkable 88.80 times subscription rate. This was thanks to the support from both retail and non-institutional investors.
The IPO’s price band was set at ₹410-432 per share. Investors could buy a minimum of 34 shares. Before the IPO, the company raised ₹246 crore from anchor investors. Big names like ICICI Prudential Mutual Fund and Tata Mutual Fund were part of this.
Key Takeaways
- Transrail Lighting’s IPO received a staggering 88.80 times subscription on the final day of bidding.
- Retail investors subscribed 22.07 times, non-institutional investors subscribed 76.41 times, and QIBs subscribed 201.06 times.
- The grey market premium (GMP) for Transrail Lighting shares was approximately ₹180, indicating a 42% premium in the unofficial market.
- The IPO includes a fresh share sale of ₹400 crore and an offer-for-sale of up to 1,01,60,000 equity shares by the promoter, amounting to ₹438.91 crore.
- Transrail Lighting’s promoter, Ajanma Holdings, currently holds an 83.22% stake in the company.
IPO Subscription Overview and Final Day Performance
The Transrail Lighting Limited IPO closed on December 23rd. It got a lot of interest from investors. People bid for 47,95,46,370 shares, more than the 1,39,16,742 shares offered.
This made the subscription 3.49 times the offered amount by the end of the second day.
Retail and Institutional Investor Participation
Retail Individual Investors (RIIs) showed a lot of interest, bidding 4.86 times. Non-institutional investors, like high-net-worth individuals and corporate bodies, bid 4.12 times. Qualified Institutional Buyers (QIBs) bid 78%, showing strong demand from big investors.
Overall Subscription Statistics
The IPO was priced between ₹410-432 per share. Investors bid for 47,95,46,370 shares, more than the 1,39,16,742 shares offered. This made the subscription 3.49 times the offered amount.
The IPO included a fresh share sale of ₹400 crore. It also had an offer-for-sale (OFS) of 1,01,60,000 equity shares by promoter Ajanma Holdings Pvt Ltd.
Category-wise Subscription Details
| Category | Subscription |
|---|---|
| Retail Individual Investors (RIIs) | 4.86 times |
| Non-Institutional Investors | 4.12 times |
| Qualified Institutional Buyers (QIBs) | 78% |
| Overall Subscription | 3.49 times |
The strong interest in the Transrail Lighting IPO shows the company’s growth potential. It also shows the confidence of both retail and institutional investors in its future.
Current Grey Market Premium and Pricing Analysis
The grey market premium (GMP) for Transrail Lighting IPO is making waves. It’s trading at a GMP of about ₹180, showing a 42% premium over the IPO’s upper price band. This is at ₹432 per share.
This high GMP suggests investors are optimistic about Transrail Lighting’s listing. Unlisted shares are quoted at ₹612 per share in the grey market. This shows the market’s positive sentiment and the potential for big gains.
The grey market is where shares trade unofficially before the IPO. A GMP of 41.7% against the upper price band shows the market’s confidence in Transrail Lighting. It expects the stock to be in demand when it lists.
Remember, the grey market premium isn’t a sure sign of the stock’s listing day performance. Yet, it offers insights into market sentiment and investor interest in the IPO.
“The robust GMP for Transrail Lighting IPO reflects the market’s positive outlook on the company’s growth prospects and its ability to deliver value to investors.”
As the IPO closes and the company gets ready to list, investors will watch closely. They’ll see how the grey market premium turns into actual listing gains.
| IPO | Grey Market Premium (GMP) | Estimated Listing Gain |
|---|---|---|
| DAM Capital Advisors | ₹160 | 56.54% |
| Sanathan Textiles | ₹43 | 13.40% |
| Mamata Machinery | ₹260 | – |
| Transrail Lighting | ₹180 | 41.67% |
| Unimech Aerospace | ₹480 | 61.15% |
Transrail Lighting IPO Closes: Check Subscription Status, GMP Today
The Transrail Lighting IPO has closed, and investors are checking the subscription status and GMP. The IPO aimed to raise ₹839 crore and got a strong public response. It was subscribed 10.84 times by the final day.
Key Subscription Highlights
Retail investors subscribed 10.84 times, non-institutional investors 23.71 times, and QIBs 1.86 times. This shows the market’s positive view on Transrail Lighting’s growth and business.
Real-time GMP Movement
The IPO shares are expected to list at a premium of about ₹180 over the issue price. This means a 42% gain in the grey market. The positive GMP shows the market’s confidence in the company.
Current Market Sentiment
The strong subscription rates and favorable GMP show a positive market sentiment. Analysts suggest subscribing to the issue. They highlight the company’s strong finances, market position, and growth outlook.
Investors are eagerly waiting for the listing. The Transrail Lighting IPO has caught the market’s attention. It has the potential to offer rewarding returns for those who participate.
Company Profile and Business Operations
Transrail Lighting is a top Indian EPC company in the power sector since 2008. It makes lattice structures, conductors, and monopoles. The company has finished over 200 projects in 58 countries, like Bangladesh and Kenya.
Its deep knowledge in power transmission and distribution has helped it a lot. It has built 34,654 circuit kilometers of transmission lines and 30,000 CKM of distribution lines. This makes it a leading EPC company in the field.
3.54
| Competitor | EPS Basic | EPS Diluted | NAV | P/E (x) | RoNW |
|---|---|---|---|---|---|
| Kec International Ltd. | 13.49 | 13.49 | 159 | 91.95 | 8.5% |
| Kalpataru Projects International Limited | 31.76 | 31.76 | 316 | 36.72 | 10% |
| Skipper Ltd | 7.66 | 7.14 | 84 | 75.97 | 9.1% |
| Patel Engineering Ltd. | 3.64 | 38 | 15.57 | 9.56% |
The company’s focus on power transmission and distribution business has led to big growth. Its revenue went up by 30.2% and profit by 116.8% from March 2023 to March 2024.
Transrail Lighting’s strong finances, manufacturing, and project experience make it a top EPC company. It’s ready for more growth and success.
Financial Performance and Order Book Status
Transrail Lighting is a top name in the power transmission and distribution field. It has shown great financial success and a strong order book. By June 30, 2024, its order book was at ₹10,213 crore. This includes 64% from international orders and 36% from the domestic market.
This order book to sales ratio of 2.5x for 2024 means the company has a clear view of its future earnings. This is good for its financial health.
In the fiscal year 2024, Transrail Lighting’s revenue jumped by 30% to ₹413 crore. Its profit more than doubled to ₹233 crore. These numbers show the company is on a path to growth.
Current Order Book Analysis
As of June 30, 2024, Transrail Lighting had an order book of ₹10,213 crore. This shows the company’s strong market position and customer trust. The mix of 64% international and 36% domestic orders highlights its global presence and diverse customer base.
Revenue Growth Trajectory
The company’s revenue saw a 30% increase in fiscal year 2024, reaching ₹413 crore. This growth shows Transrail Lighting’s ability to tap into the growing power transmission and distribution market. It’s doing well both at home and abroad.
Profit Margins and Financial Metrics
Transrail Lighting’s financials are also impressive, with profits more than doubling to ₹233 crore in 2024. The company’s high profit margins and solid financial health show its operational efficiency and cost management skills. These factors have contributed to its success.
IPO Details and Fund Utilization Plan
The Transrail Lighting IPO includes a fresh equity issue of ₹400 crore. There’s also an offer-for-sale (OFS) of 1.01 crore shares by the promoter, Ajanma Holdings. The total issue size is about ₹839 crore, making the company worth around ₹5,800 crore.
The fresh IPO proceeds will fund working capital, capital expenditure, and general corporate needs. The allotment is set for December 24. Shares will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December 27.
The IPO saw a remarkable 81.97 times subscription. Investors from all categories showed strong interest:
- Qualified Institutional Buyers (QIBs) subscribed 197.41 times
- Non-Institutional Investors (NIIs) subscribed 78.31 times
- Retail Individual Investors (RIIs) subscribed 22.59 times
- Employee reservations were subscribed 4.38 times
Before the IPO, Transrail Lighting’s Grey Market Premium (GMP) was ₹130-135. This was a 30% premium over the issue price. The company’s financials are strong, with revenue up 30% to ₹413 crore and profits doubling to ₹233 crore in FY24.
“The overwhelming response to our IPO shows the market’s faith in Transrail Lighting’s growth,” said Amit Gupta, CEO.
Conclusion
The Transrail Lighting IPO has caught a lot of investor attention. It shows in its high subscription rates and positive grey market premium. The company’s strong market position, full order book, and good financials make it a great choice for those looking into the lighting sector.
The IPO’s success shows the positive mood in the market as 2024 gets closer. But, investors should do their homework and think about the market before investing. The Transrail Lighting IPO’s success shows there’s still a big interest in quality stocks in India. It will be exciting to see how the stock does after it lists.
In summary, the Transrail Lighting IPO has gotten a good reaction from the market. The company’s solid base suggests it could be a good fit for investors’ portfolios. Always make smart investment choices based on your own risk level and long-term goals.
FAQ
What was the subscription status of the Transrail Lighting IPO?
The Transrail Lighting IPO closed on December 23. It saw a strong subscription of 88.80 times. This was due to high participation from retail and non-institutional investors.
How did the different investor categories perform in the IPO?
The retail individual investor (RII) portion was subscribed 22.07 times. The non-institutional investor portion was 76.41 times. Meanwhile, the qualified institutional buyer (QIB) portion reached 201.06 times.
What was the gray market premium (GMP) for the Transrail Lighting IPO?
The gray market premium for the Transrail Lighting IPO was around ₹180. This shows a premium of nearly 42% in the unofficial market.
What are the key highlights of Transrail Lighting’s business and financial performance?
Transrail Lighting is a leading Indian EPC company. It focuses on power transmission and distribution. It has a strong order book and revenue growth.
As of June 30, 2024, its order book was ₹10,213 crore. 64% of this was from international orders. In FY24, its revenue from operations rose 30% YoY to ₹413 crore. Its profit more than doubled to ₹233 crore.
How will the IPO proceeds be utilized by Transrail Lighting?
The IPO includes a fresh equity issue of ₹400 crore. The proceeds will be used for several purposes. This includes meeting incremental working capital requirements, funding capital expenditure, and supporting general corporate purposes.
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