Transrail Lighting IPO: GMP, subscription status, should you apply as issue ends tomorrow

Transrail Lighting Limited's initial public offering (IPO) is set to witness its final day of public subscription on Monday, December 23. The public issue opened for bidding on Thursday, December 19. Stock market investors will have till Monday, 5 p.m., as the time period for applying for the public offer. The Transrail Lighting IPO has been subscribed 5.31 times the shares on offer as investors bid for 7,38,94,750 shares, compared to the 1,39,16,742 shares on offer. The company has fixed the price band 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 As of December 22, the grey market premium (GMP) for the Transrail Lighting public issue is at ₹ 175 per share. With the upper price band for the issue at ₹ 432, the shares are expected to be listed at ₹ 607 per share, a premium of 40.51 per cent, according to the data collected from Investorgain.com. Grey market premium ( GMP ) is an indicator of the investors' willingness to pay more for a public issue. The GMP fell to its current level on December 21, and as of the publishing of this article is at ₹ 175. Earlier the GMP rose to ₹ 185 on December 19. Transrail Lighting IPO subscription data The initial public offering of Transrail Lighting received strong subscriptions from all three investor portions as of the second day of the public issue. The Non-Institutional Investors (NIIs) led the bidding round subscribing to the public offer 7.23x compared to the shares available. The retail investors followed the NII lead, coming in at 6.90x the shares on offer for the portion. The Qualified Institutional Buyers (QIBs) also subscribed 1.38 times the shares available on the second day of the Transrail Lighting IPO. Transrail Lighting IPO Apply or not? Assigning a “Subscribe - Long Term” rating to the initial public offering of Transrail Lighting, stock brokerage Anand Rathi said, “The growing demand for power, coupled with government initiatives, has driven the need for transmission and distribution lines. The company is well-positioned to supply T&D products and efficiently manage multiple projects across various countries. We believe that the issue is fairly priced.” “At the upper band company is valuing at 24.8x its FY24 EPS. Following the issuance of equity shares, the company's market capitalization stands at ₹ 57,998.6 million, with a market cap-to-sales ratio of 1.4 based on its FY24 earnings,” said the analysts. The company aims to use the ₹ 400 crore raised from the fresh issue towards funding working capital requirements, capex requirements, and general corporate purposes. The issue is set to open on December 23 for its final bidding day; the shares are expected to be listed on Friday, December 27. Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.