Transrail Lighting IPO Shines Bright with Full Subscription

Transrail Lighting's IPO was fully subscribed just hours after opening, with bids for 1.28 times the shares on offer. Retail individual investors led with a 2.07 times subscription. The company aims to raise Rs 839 crore with proceeds earmarked for working capital and expansion.

Transrail Lighting's initial public offering (IPO) saw full subscription in mere hours on Thursday, underscoring strong market confidence. The share sale received bids for 1,77,77,512 shares, surpassing the 1,39,16,742 shares available, resulting in a subscription rate of 1.28 times, according to data from the National Stock Exchange as of 14:30 hours.

Retail individual investors showed robust interest, achieving 2.07 times subscription, while non-institutional investors subscribed 1.18 times. Preceding the IPO launch, the company successfully raised Rs 246 crore from anchor investors. The Rs 839-crore offering is set within a price band of Rs 410-432 per share.

The IPO comprises a fresh issue of shares valued at Rs 400 crore and an offer for sale of 1.01 crore equity shares by the promoter, Ajanma Holdings Pvt Ltd, which currently holds an 83.22% stake in the Mumbai-based firm. Aiming for a market capitalization near Rs 5,600 crore, the fresh capital will support incremental working capital, capital expenditure, and broader corporate purposes. Transrail Lighting, a leader in the Indian EPC sector focusing on power transmission and distribution, boasts a global footprint across 58 countries. Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities are spearheading the book-running management of the issue.

(With inputs from agencies.)