Transrail lighting attracts Rs 65 Crore investment from notable investors ahead of IPO

India IPO

Updated July 25, 2024

Ajanma Holdings, one of the promoters, sold little more than a percent stake in the company to nine investors.

Transrail lighting attracts Rs 65 Crore investment from notable investors ahead of IPO

Transrail Lighting, an engineering and construction firm, has garnered significant interest from investors such as Ashish Kacholia, Shubham Bansal, Vinod Sethi, and Volrado Venture in anticipation of its upcoming IPO.

Ajanma Holdings, one of Transrail’s promoters, divested a little over 1% of its stake in the company to nine investors. Specifically, Ajanma sold 13,43,746 equity shares, which is 1.08% of the company’s pre-offer paid-up equity share capital, at Rs 484 per share. This transaction was announced in newspapers on July 25.

According to a notice from Ajanma on July 23, Ashish Kacholia and Himalaya Finance each acquired 3.61 lakh shares worth Rs 17.5 crore in Transrail, while Volrado Venture Partners Fund IV GAMMA purchased 3 lakh shares valued at Rs 14.52 crore. Rajasthan Global Securities invested nearly Rs 10 crore for 2.06 lakh shares, and Vinod Sethi bought shares worth around Rs 3 crore. Shubham Bansal and Risabh Bansal each received 20,661 shares, worth nearly Rs 1 crore. Additional investors included Samedh Trinity Partners and Mayvenn Partners.

Transrail Lighting filed preliminary documents with SEBI in March to raise funds via an IPO, which includes a fresh share issuance worth Rs 450 crore and an offer-for-sale of 1.01 crore shares by Ajanma Holdings. The promoters currently hold 86.31% of the company, with the remaining 13.69% held by public shareholders.

Ajanma Holdings owns 85% of the shares, while Asiana Alternative Investment Fund Scheme and Canara Bank hold 8.04% and 1.62%, respectively. The company specializes in power transmission and distribution, with integrated facilities for lattice structures, conductors, and monopoles. It also operates in civil construction, poles and lighting, and railways.

Comparing itself with industry peers like KEC International, Kalpataru Projects International, Skipper, Bajaj Electricals, and Patel Engineering, Transrail may undertake a pre-IPO placement of up to Rs 50 crore before filing the red herring prospectus. The fresh proceeds from the IPO will be allocated towards working capital requirements (Rs 250 crore), capital expenditure (Rs 90.9 crore), and general corporate purposes.

The company is still awaiting SEBI's approval for its draft red herring prospectus. Inga Ventures, Axis Capital, HDFC Bank, and IDBI Capital Markets & Securities are the merchant bankers for the issue.