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Background:

Transrail Lighting Limited is a distinguished Indian EPC company specializing in the power transmission and distribution sector. Established in 2008, the company has earned a solid reputation as a reliable EPC partner, having successfully executed over 200 projects across 58 countries. The company manufactures a diverse range of products, including lattice structures, conductors, and monopoles. The company has made significant contributions to constructing extensive transmission and distribution networks, achieving notable milestones with 34,654 circuit kilometers (CKM) of transmission lines and 30,000 CKM of distribution lines completed.

Objects and Details of the Issue:

* Total issue of ~Rs. 839 Cr (at upper price band) consists of fresh issue worth Rs. 400 Cr and offers for sale worth Rs. 439 Cr.

* The proceeds from the fresh issue will be allocated as follows: (i) Rs.250 crore will be used to support incremental working capital requirements; (ii) Rs.91 crore will be directed towards funding capital expenditures; and (iii) the remaining funds will be allocated for general corporate purposes.

Investment Rationale:

* Growth Opportunities for Transrail Lighting Limited in India's Power Transmission and Distribution Sector

* Transrail Lighting Limited's extensive experience in the power transmission sector

* State-of-the-art manufacturing facility

Valuation and Recommendation:-

Transrail Lighting Limited has established a strong presence in the power transmission and distribution sector, with an extensive order book valued at approximately Rs.10,213 crore, and L1 of over Rs.3200 crore. The company's involvement in government infrastructure initiatives ensures a reliable revenue stream. It has demonstrated superior operational metrics, boasting the shortest working capital cycle among its peers, which enhances its liquidity. With revenue CAGR of 32%, and a ROCE of 26%, well above the peer, the company showcases robust financial performance. Additionally, it enjoys an attractive valuation with an EV/EBITDA ratio of 13.1. We recommend a subscribe rating for the IPO.

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SEBI Registration number is INH000001766