Bengaluru: The Transrail Lighting Limited initial public offering (IPO) is set to conclude its subscription period on December 23, 2024, and investors are keenly evaluating whether to participate in this public issue. With the IPO already receiving significant interest, here’s what you need to know before making your decision.
IPO Details
Transrail Lighting has fixed the price band for its IPO between ₹410 and ₹432 per share, with a minimum lot size of 34 shares. The total issue size is approximately ₹838.91 crore, which includes a fresh issue of equity shares worth ₹400 crore and an offer-for-sale component of ₹438.91 crore.
Key Dates:
- IPO Opening Date: December 19, 2024
- IPO Closing Date: December 23, 2024
- Allotment Date: December 24, 2024
- Listing Date: December 27, 2024
Subscription Status
As of now, the Transrail Lighting IPO has been subscribed 5.31 times, with investors bidding for 7,38,94,750 shares against the 1,39,16,742 shares available. The subscription has seen robust participation across all investor categories:
- Non-Institutional Investors (NIIs): Subscribed 7.23 times
- Retail Individual Investors (RIIs): Subscribed 6.90 times
- Qualified Institutional Buyers (QIBs): Subscribed 1.38 times
Grey Market Premium (GMP)
The grey market premium (GMP) for the Transrail Lighting IPO currently stands at ₹175 per share. This indicates that shares are expected to list at around ₹607, reflecting a potential premium of approximately 40.51% over the upper price band of the issue.
Should You Apply?
Analysts from stock brokerage firm Anand Rathi have assigned a “Subscribe – Long Term” rating to the Transrail Lighting IPO. They highlight that the growing demand for power and government initiatives in transmission and distribution sectors position the company favorably for future growth. At the upper price band, the company is valued at approximately 24.8 times its FY24 earnings per share (EPS).
Financial Projections:
- Market Capitalization Post-Issue: ₹57,998.6 million
- Market Cap-to-Sales Ratio: 1.4 based on FY24 earnings
The funds raised through this IPO will be utilized for working capital requirements, capital expenditures, and general corporate purposes.
Conclusion
With strong subscription figures and a healthy GMP indicating positive market sentiment, the Transrail Lighting IPO presents an attractive opportunity for investors looking to capitalize on growth in the power transmission sector. However, potential investors should consider their risk tolerance and investment strategy before applying.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with financial advisors before making investment decisions related to IPOs or any other financial instruments. This article provides a comprehensive overview of the Transrail Lighting IPO while highlighting key details and considerations for potential investors.
