Transrail Lighting Ltd (TLL) shall open the bid/offer period in relation to its initial public offer (IPO) of equity shares on Thursday, December 19, 2024 for subscription, and close on Monday, December 23, 2024.
The anchor investor bid/offer period opens and closes on Wednesday, December 18, 2024.
The IPO comprises of a fresh issue of equity shares aggregating Rs.400 crore and an offer for sale (OFS) aggregating up to 10,160,000 equity shares by one of the promoters of the company – Ajanma Holdings Pvt Ltd.
The company proposes to use the net proceeds towards funding:
- Incremental working capital requirements of the company
- Capital expenditure of the company
- General corporate purposes
The price band of the offer has been fixed at Rs.410.00 to Rs.432.00 per equity share. Bids can be made for a minimum of 34 equity shares and multiples thereof.
Capex plans
Addressing a media conference in Mumbai on December 16, 2024, Randeep Narang, MD & CEO, Transrail Lighting Ltd said that of the total IPO proceeds of Rs.400 crore, around Rs.250 crore will be set aside for working capital requirements, while Rs.90 crore will be used for capital expenditure. The remaining would be assigned for general corporate purposes.
Elaborating on the capex plans, Narang said that manufacturing capacity would be expanded by 25-30 per at the company’s existing facilities. TLL has four integrated manufacturing facilities, including one tower testing facility, spread across the Gujarat (Vadodara), Maharashtra (Deoli) and UT of DNH&DD (Silvassa). These facilities produce key components for transmission towers, conductors and poles. This backward integration has helped the company reduce its dependence on third-party suppliers.
TTL is also planning to produce HTLS (high-temperature low sag) conductors in collaboration with France-headquartered Epsilon, Narang said.
Responding to a query on whether TTL would like to explore opportunities in the power transmission development space, Randeep Narang stressed that Transrail would like to adhere to its core competence of EPC in power T&D, and was not considering grooming into a transmission service provider.
The MD & CEO also said that there was good potential in underground cabling. However, Narang clarified that in India, Transrail Lighting would be looking at underground cabling, as a complement to overhead transmission lines, in areas where right-of-way constraints exist, as opposed to end-to-end underground cabling projects. However, in some international projects, for instance in Suriname, TTL has commissioned an end-to-end underground cabling project.
Order book
As of June 30, 2024, TLL had a confirmed order book (excluding L1 positions) of Rs.10,213 crore. Significantly 64.47 per cent of this represented overseas orders while only 35.53 per cent related to domestic orders. Transrail has a global footprint spanning 58 countries and currently has ongoing projects in over 20 countries. Seen from the perspective of business verticals, over 90 per cent of this order book related to power T&D. The remaining was distributed across civil construction, railways and solar energy.
In FY24, TLL had an order inflow of Rs.4,383 crore of which 90 per cent related to power T&D projects – both domestic and international. The momentum was seen continuing in Q1FY25 (April to June) with order bookings of Rs.944 crore.
Featured photograph shows Digambar Bagde, Executive Chairman, Transrail Lighting Ltd (right) and Randeep Narang, MD & CEO, Transrail Lighting Ltd, at the company’s IPO-related media conference in Mumbai on December 16, 2024.
