Shares of Transrail Lighting, a recently listed engineering, procurement, and construction (EPC) company, saw a sharp rise in early trading on Friday, February 28, gaining as much as 6% to reach ₹517.70 per share on the National Stock Exchange (NSE). The surge was driven by a significant development announced by the company on Thursday, where it revealed that it had secured a major contract worth ₹2,752 crore in the power transmission and distribution (T&D) sector.
Despite the strong start, the stock struggled to maintain its early momentum and trimmed some of its gains within minutes of the surge. At the most recent update, Transrail Lighting was trading 2.51% higher at ₹500.30 per share on the NSE, reflecting some profit booking by investors.
This latest contract win has further strengthened the company’s project pipeline, bringing its total order book value to ₹7,400 crore. This significant growth reflects Transrail Lighting’s expanding market presence and increasing demand for its services in the T&D sector.
Randeep Narang, Managing Director & CEO of Transrail Lighting, expressed confidence in the company’s growth trajectory following this achievement. In an official statement, he said, “With this addition, our year-to-date (YTD) order inflows have surpassed ₹7,400 crore, marking a 90% growth compared to last year. This milestone further solidifies our position as a leading player in the industry.”
Transrail Lighting’s IPO Performance and Listing Details
Transrail Lighting made a remarkable debut on the Indian stock exchanges on December 27, 2024, with its shares witnessing a substantial surge on the first day of trading. Investors showed strong confidence in the company, leading to a nearly 37% rise in share price compared to the IPO issue price of ₹432 per share.
• On the Bombay Stock Exchange (BSE), the company’s shares debuted at ₹585.15 per share, reflecting a 35.45% premium over the issue price. As the trading session progressed, the stock soared further, hitting a high of ₹604 per share, marking an impressive 39.81% increase over the issue price.
• Similarly, on the National Stock Exchange (NSE), the stock opened at ₹590 per share, registering a 36.57% surge from the issue price.
The overwhelming response from investors was evident in the company’s initial public offering (IPO), which recorded a subscription of 80.80 times on the final day of bidding. This level of demand demonstrated significant market interest in Transrail Lighting’s business model and growth prospects.
The IPO, valued at ₹839 crore, was launched within a price band of ₹410 – ₹432 per share. It consisted of:
• A fresh issue of equity shares worth ₹400 crore, aimed at supporting the company’s expansion plans.
• An offer-for-sale (OFS) of 1.01 crore equity shares by Ajanma Holdings Pvt. Ltd., the company’s promoter.
The strong debut and sustained investor confidence following the listing underscored the company’s solid fundamentals, growth potential, and strategic positioning in the T&D sector.
Utilization of IPO Proceeds
Transrail Lighting has strategically planned the allocation of funds raised through its IPO to support its long-term expansion and operational efficiency. The proceeds from the fresh issue of shares will be directed toward multiple key areas, including:
1. Incremental Working Capital Requirements
• A substantial portion of the funds will be used to enhance working capital, ensuring smooth execution of ongoing and upcoming projects.
• Given the nature of large-scale EPC contracts, maintaining adequate working capital is crucial for seamless project execution, timely procurement of raw materials, and managing day-to-day operations.
2. Capital Expenditure (CapEx)
• The company plans to invest in infrastructure, equipment, and technological advancements, enabling it to improve efficiency and scale up its operations.
• Strengthening its manufacturing capabilities for key components like lattice structures, conductors, and monopoles will help Transrail maintain its competitive edge in the industry.
3. General Corporate Purposes
• The remaining portion of the IPO proceeds will be utilized for general corporate purposes, which may include debt reduction, business development activities, and strategic initiatives to expand market presence.
• This allocation will provide financial flexibility, helping the company sustain growth and capitalize on emerging opportunities in the power transmission and distribution sector.
About Transrail Lighting
Transrail Lighting is a well-established Indian EPC company specializing in power transmission and distribution (T&D) projects. With decades of expertise in the industry, the company has successfully positioned itself as a leading player in the infrastructure development sector, providing end-to-end solutions for power grid projects, electrification, and related services.
One of Transrail Lighting’s core strengths lies in its integrated manufacturing capabilities. The company has developed an extensive in-house manufacturing setup for lattice structures, conductors, and monopoles, which are critical components in power transmission networks. This vertical integration allows the company to:
• Maintain strict quality control over its products.
• Enhance operational efficiency and cost-effectiveness.
• Improve timely execution of large-scale projects without depending on third-party suppliers.
Beyond its strong presence in India, Transrail Lighting has successfully expanded its footprint in the global market, having executed projects in over 58 countries. The company’s international reach demonstrates its ability to adapt to diverse market conditions, regulatory requirements, and infrastructure needs across different geographies.
As the demand for power infrastructure continues to grow, both in India and globally, Transrail Lighting remains focused on strengthening its capabilities, securing new contracts, and enhancing its position in the market. With a robust order book, a strong financial foundation, and a strategic vision for growth, the company is well-positioned to capitalize on emerging opportunities in the T&D sector while continuing to expand its global presence.