Transrail Lighting Files for IPO to Fund Growth and Expansion

15 Mar 2024 , 11:17 AM

Engineering and construction company Transrail Lighting has filed draft papers with the Securities and Exchange Board of India to raise funds through an initial public offering (IPO). The offer comprises a fresh issue of shares worth ₹450 Crore and an offer-for-sale of 1.01 Crore shares by promoter Ajanma Holdings.

The company may consider a pre-IPO placement aggregating up to ₹50 Crore, and the fresh issue size will be reduced accordingly.

Of the fresh proceeds, ₹250 Crore will be used to meet working capital requirements, and ₹90.9 Crore will support capital expenditure. The remaining funds will be allocated for general corporate purposes.

INGA Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities are the lead managers to the issue. Link Intime India is the registrar for the issue. Ajanma Holdings, Digambar Chunnilal Bagde, and Sanjay Kumar Verma are promoters.

In FY23, the company’s revenue (including other operating revenue) rose by 34.13% from the previous year to ₹3,152.15 Crore. Profit after tax jumped by 66.2% to ₹107.56 Crore.

For the six-month period ended September 30, revenue stood at ₹1,846.8 Crore, and PAT at ₹85.88 Crore. Net debt was at ₹474.55 Crore, and the debt-to-equity ratio was 0.62 times.

Transrail Lighting’s listed peers include Kalpataru Projects International, KEC International, Skipper, Bajaj Electricals, and Patel Engineering.

Transrail is an engineering, procurement, and construction company with integrated manufacturing facilities for lattice structures, conductors, and monopoles, boasting over four decades of experience in providing comprehensive solutions on a turnkey basis globally.

The business operates across four verticals — power transmission and distribution (including substations), civil construction, poles and lighting, and railways.