The initial public offering (IPO) of Transrail Lighting Limited is expected to be the last day of public subscription on Monday, December 23. The public issue opened for bidding on Thursday, December 19. Investors in the stock market have until 5pm on Monday as the deadline for submitting applications for the public offer.
Transrail Lighting’s IPO was subscribed 5.31 times the number of shares on offer, with investors bidding for 7,38,94,750 shares compared to the 1,39,16,742 shares on offer. The company has set the price range for the public issue in the range of ₹410 to ₹431 per share, with a lot size of 34 shares per lot.
Transrail Lighting IPO latest GMP
From December 22, the gray market premium (GMP) applies to the public issue Transrail Lighting ₹175 per share. With the upper price range for the issue at ₹432, the shares are expected to be listed at ₹607 per share, a premium of 40.51 percent, according to data collected from Investorgain.com.
The gray market premium (GMP) is an indicator of the willingness of investors to pay more for a public offering. The GMP fell to its current level on December 21 and is where it is at the time of publishing this article ₹175. Previously the GMP rose to ₹185 on December 19.
Transrail Lighting IPO subscription details
The Transrail Lighting IPO received strong subscriptions from all three investor sections from the second day of the public offering.
The non-institutional investors (NIIs) led the bidding round and subscribed 7.23x to the public offer compared to the available shares. The retail investors followed the NII lead and arrived at 6.90x the offered shares for the part. The Qualified Institutional Buyers (QIBs) also subscribed to 1.38 times the number of available shares on the second day of Transrail Lighting’s IPO.
Transrail Lighting IPO Apply or not?
While assigning a “Subscribe – Long Term” rating to Transrail Lighting’s IPO, stockbroker Anand Rathi said: “Growing power demand, coupled with government initiatives, has driven the need for transmission and distribution lines. The company is well positioned to deliver T&D products and efficiently manage multiple projects in different countries. We believe the issue is reasonably priced.”
“The high end values the company at 24.8x its earnings per share for fiscal year 2024. After the issuance of shares, the company’s market capitalization is ₹57,998.6 million, with a market cap/sales ratio of 1.4 based on FY24 earnings,” the analysts said.
The company wants to use the ₹400 crore raised from the fresh issue for financing working capital requirements, capital investment requirements and general corporate purposes. The issue will open for the final bidding day on December 23; The shares are expected to list on Friday, December 27.
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