Today, Transrail Lighting made its debut on the stock market, listed on the NSE at Rs 590, 37% higher than its initial public offering price of Rs 432 per share. The shares were listed on the Bombay Stock Exchange (BSE) at Rs 585.15 each.
As the IPO was oversubscribed 81 times, the market debut is in line with expectations and shows strong investor interest.
The engineering and construction firm’s initial public offering (IPO), which ended on December 23, raised Rs 839 crore. A new issue valued at Rs 400 crore and an offer-for-sale by promoter Ajanma Holdings totalling Rs 438.9 crore were part of the offering. The money obtained from the new issuance will go toward capital expenditures, working capital requirements, and other business needs.
The long-term prospects of the corporation are optimistic, according to analysts. In order to take advantage of Transrail Lighting’s robust order book of Rs 10,213 crore and excellent market visibility, Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, advises holding the company. He points out that the company’s global footprint and diversification strategy offer a strong basis for growth, and that the IPO was fairly priced.
Booking a portion of the listing gains as profits could be wise for risk-averse investors. To take advantage of the company’s projected expansion in the electricity transmission and distribution industry, long-term investors are urged to hold onto their shares.
