Transrail Lighting Ltd (TLL) is entering the market with its initial public offering (IPO) of equity shares, aiming to mop up Rs.450 crore. The Mumbai-headquartered company has already filed the draft red herring prospectus (DRHP) with Securities & Exchanges Board of India (SEBI).
The IPO will also have an “offer for sale” of up to 10.16 million equity shares by one of the company’s promoters, Anjanma Holdings Pvt Ltd.
TLL has two other promoters, both individuals – Digambar Chunnilal Bagde and Sanjay Kumar Verma. At the time of filing of the DHRP, Anjanma Holdings Pvt Ltd held 105.36 million equity shares of TTL, representing 85 per cent of the company’s equity capital.
The net proceeds of the public issue will be used for meeting incremental working capital requirements, funding the company’s capital expenditure and for general corporate purposes, the DHRP said.
TLL proposes to spend around Rs.90 crore to procure equipment and plant & machinery, which would include CNC machines, stringing TSE (tension stringing equipment) machines and other equipment.
Currently, TTL has four manufacturing units supplying galvanised lattice towers, galvanised monopoles, and conductors. As of September 30, 2023, the company had executed EPC works covering 33,500 ckm of transmission lines and 30,000 ckm of distribution lines, domestically and internationally.
Transrail Lighting also provides EPC services in relation to substations up to 765kV and the company intends to strengthen its position as one of the leading infrastructure turnkey solutions provider in the EPC space in India and internationally.
The global footprint of Transrail Lighting covers 58 countries including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, Nicaragua etc. This includes both turnkey EPC projects as well as supply projects.
Over the past few years, the share of international business in the company’s total revenue from operations has been showing a steady upward trend. From just 21 per cent in FY21, this share rose to 38 per cent in FY22 and further to 53.4 per cent in FY23. In the first six months of FY24 (H1: April to September), this share was even higher at 55.9 per cent.
While power T&D is the major business vertical of Transrail Lighting Ltd, accounting for 85.2 per cent of the company’s total revenue from operations in H1 of FY24, the company is also present in other verticals like civil construction, railways and lighting & poles. These three verticals had respective shares of 8.44 per cent, 3.04 per cent and 3.32 per cent in the company’s operational revenue in H1FY24.
Order book
As of September 30, 2023, Transrail Lighting had an unexecuted order book worth Rs.9,620.45 crore with international orders commanding a 67.56 per cent share. In terms of business verticals, power T&D clearly dominated with a 90 per cent share. In addition to this confirmed order book of Rs.9,620.45 crore, the company held L1 position with respect to orders aggregating Rs.7,087.26 crore.
Also read: Transrail Celebrates 35 Glorious Years Of Engineering Excellence
Featured photograph (source: Transrail Lighting) is for representation only.
