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Pioneering in Power Transmission and Distribution

Transrail Lighting Ltd. (TLL) is an Indian EPC (engineering, procurement and construction) company specializing in power transmission and distribution. It operates integrated manufacturing facilities for lattice structures, conductors, and monopoles. TLL has completed over 200 projects across 58 countries, showcasing extensive project execution capabilities. The company operates in four verticals: power transmission and distribution (83.4%), civil construction (9.3%), poles and lighting (4.4%), and railways (2.4%), with projects in India and internationally, primarily in Asia and Africa.

* CRISIL MI&A Consulting projects a 5.5-6.0% growth in power demand from FY24- 29. The distribution segment is expected to attract investments of

* 3-4 trillion between FY25 - 29, driven by rising electricity demand, government initiatives, a focus on sustainability, and the adoption of smart grid technologies.

* Transrail's revenue increased from

* 2,349.9cr in FY22 to ?4,076.4cr in FY24, achieving a CAGR of 32%, primarily driven by higher EPC contract income and increased service revenue.

* The company’s EBITDA grew from

* 64.8cr in FY22 to ?233.1cr in FY24 with a CAGR of 51.8%. PAT increased to

* 462cr, reflecting a CAGR of 89.7% over the FY22-24 period.

* As of June 30, 2024, the order book stood at

* 10,213cr. Of this, 64% comprises international orders (High margin), while the remaining 36% are domestic orders. The order book to sales ratio for FY24 is 2.5x, ensuring healthy revenue visibility over the medium term.

* TLL’s ROE stood at 20.5% in FY24, which is superior compared to its peers. The debt -to-equity ratio of the company has decreased from 0.8x in FY23 to 0.5x inQ1FY25.

* The company did a pre-IPO placement of Rs.50cr (Sept 2024) at a price of Rs. 484 per share and the fresh issue size is reduced to that extent in the IPO.

* At the upper price band of

* 432, TLL is available at a P/E of 24.9 (FY24), which is at a discount compared to its listed peers. The government support for the power transmission segment, strong thrust on sustainability, and rising adoption of smart grid technologies present significant opportunities for the company's future growth. With a robust order pipeline and consistent financial performance featuring industryleading margins, the company is well-positioned for future success. We recommend subscribing to this issue for medium- to long-term investment.

Purpose of IPO The IPO consists of fresh issue of

* 400cr and an OFS of

* 438.91cr. The proceeds from its fresh issuance will be utilised for (i) Funding incremental working capital requirements of the company (ii) Funding capital expenditure of the company (iii) General corporate purposes.

Key Risks

* Order Book is subject to cancellation, modification or delay which may materially and adversely affect the business.

* Company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials, receivables from the foreign projects.

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SEBI Registration Number: INH200000345