Transrail Lighting files IPO papers with Sebi; eyes Rs 450-crore via fresh issue

Transrail Lighting Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

The proposed initial share sale is a combination of a fresh issue of equity shares worth Rs 450 crore and an offer for sale of over 1 crore equity shares by a promoter Ajanma Holdings Private Limited, according to the Draft Red Herring Prospectus (DRHP) filed last week.

At present, promoters hold over 86 per cent stake in the Mumbai-based company. The company may consider a pre-IPO placement for Rs 50 crore.

If such placement is undertaken, the fresh issue size will be reduced. Proceeds from the fresh issue to the tune of Rs 250 crore will be used to fund incremental working capital requirements, Rs 90.90 crore to support capital expenditure, and balance amount for general corporate purposes.

Transrail Lighting is one of the leading Indian Engineering, Procurement, and Construction (EPC) companies with a primary focus on power transmission and distribution business and integrated manufacturing facilities for lattice structures, conductors, and monopoles.

It has a footprint in more than 58 countries. As of September 30, 2023, the company has undertaken EPC of 33,500 circuit kilometers (CKM) transmission lines and 30,000 CKM distribution lines, domestically and internationally.

Inga Ventures Private Limited, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities are the book-running lead managers that will advise the company on the IPO.