Transrail Lighting shares list at 37% premium over IPO price

The shares of Transrail Lighting debuted with a premium of 36.57% on Friday. The shares listed at Rs 590 on the NSE.

Meanwhile, the shares listed at Rs 585.15 on BSE, rising 35.45%.

The company's shares were trading with a GMP of Rs 165 in the grey market.

However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

The IPO of Transrail Lighting received robust response from investors with an overall subscription of 80 times at close. The Rs 839 crore IPO included a fresh equity issue of Rs 400 crore and an offer for sale (OFS) of Rs 438 crore.

Transrail Lighting, established in 2008, is an engineering and construction firm specializing in power transmission and distribution. They manufacture lattice structures, conductors, and monopoles.

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Since its founding, Transrail Lighting has completed over 200 power transmission and distribution projects. The company operates in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon executing turnkey EPCs and supply projects.

As of June 2024, the company has completed the EPC of 34,654 CKM of transmission lines and 30,000 CKM of distribution lines, both domestically and internationally.

The power transmission and distribution system across India has expanded extensively over the years. The total length of domestic transmission lines rose from 413,407 CKM in FY19 to 485,544 CKM in FY24.

Further, India has the second-largest road network in the world, spanning 6.30 million kms. Large highways/expressways are the key demand drivers for the high mast lighting in India. With more than 20 expressways planned across the country and with the award of nearly 5,000 km of highways every year in the next five fiscal years, the demand for high masts is expected to be supported by road segments.

In FY24, the company's revenue from operations rose 30% YoY to Rs 413 crore, while profit more than doubled to Rs 233 crore in the same period.

Shares of the company ended at Rs 553.30 at close of trade, down 31.85 or 5.44% from listing price and up 121.30 or 28% from issue price.

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