The initial public offering (IPO) of Rs 839 core Transrail Lighting Limited was subscribed 23.12 times on the final day of bidding, following full subscription. On the second day, it was subscribed 5.31 times, and on the first day, 2.07 times. The Grey Market Premium (GMP) for the IPO reached Rs 180 on the morning of Monday, December 23. The estimated listing price is likely to be Rs 612, which is 41.67% higher than the IPO price.
The share sale by Transrail Lighting received bids for 32.17 crore shares as against 1.39 crore shares on offer. Retail Individual Investors subscribed 14.99 times, while the quota for non-institutional subscribed 46.18 times. The Qualified Institutional Buyers (QIBs) portion attracted 22.43 times bidding. The price band has been set at Rs 410-432 per share. Investors can apply for a minimum of 34 equity shares and its multiples thereafter.
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The power transmission and distribution company is offering fresh shares, with promoter Ajanma Holdings Pvt. offloading shares through this maiden public offering. The company previously conducted a pre-IPO placement worth Rs 50 crore to Volrado Venture Partners Fund IV Gamma and Shyamsundar B.
The Mumbai-based company aims to raise Rs 400 crore through the fresh issue, while Rs 438.91 crore will go to the selling promoter. Net proceeds from the fresh issue, excluding the Rs 50 crore pre-IPO placement, will be allocated toward incremental working capital requirements and capital expenditure.
From the net proceeds and pre-IPO placement, Rs 250 crore will be directed toward working capital requirements, with Rs 217.02 crore expected to be utilised by the fiscal year ending March 2025. Additionally, Rs 90.73 crore has been reserved for capital expenditure, all of which will be deployed within the current financial year.