Transrail Lighting IPO Anchor Allocation at 29.34%

Transrail Lighting IPO saw a significant anchor allocation response, with 29.34% of the total IPO size subscribed by anchor investors. Out of the 194,092,257 shares on offer, anchors picked up 5,693,832 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on December 18, 2024, just ahead of the IPO opening on December 19, 2024.

The book-built issue of ₹838.91 crores comprises a fresh issue of 92,59,259 shares aggregating to ₹400.00 crores and an offer for sale of 101,60,000 shares aggregating to ₹438.91 crores. The price band is set at ₹410 to ₹432 per share, with a face value of ₹2 per share. This includes a share premium of ₹430 per share at the upper end of the price band.

The anchor allocation process, which took place on December 18, 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹432 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

Notably, the 5,693,832 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. The QIB quota has been adjusted to ensure that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Transrail Lighting IPO, the lock-in details are as follows: 

• Lock-in Period (50% Shares): January 23, 2025 
• Lock-in Period (Remaining Shares): March 24, 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.
 

Anchor Investors in Transrail Lighting IPO 

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On December 18, 2024, Transrail Lighting IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 5,693,832 shares were allotted to 19 anchor investors. The allocation was done at the upper IPO price band of ₹432 per share, resulting in an overall anchor allocation of ₹245.97 crore. The anchors have already absorbed 29.34% of the total issue size of ₹838.91 crore, indicating strong institutional demand.

Out of the total allocation of 5,693,832 equity shares to the Anchor Investors, 2,291,702 equity shares (i.e., 40.25% of the total allocation) were allocated to 6 domestic mutual funds through 10 schemes.

Key IPO Details:

• IPO Size: ₹838.91 crores 
• Shares Allocated to Anchors: 5,693,832 
• Anchor Subscription Percentage: 29.34% ‘
• Listing Date: December 27, 2024 
• IPO Opening Date: December 19, 2024
   

About Transrail Lighting Limited and How to Apply for Transrail Lighting IPO  

Incorporated in February 2008, Transrail Lighting Limited is an engineering and construction company focused on power transmission and distribution and manufacturing lattice structures, conductors, and monopoles. Since its inception, the company has completed over 200 power transmission and distribution projects. The company has a presence in 58 countries, including Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, and Nicaragua. As of June 30, 2024, the company has completed the EPC of 34,654 CKM of transmission lines and 30,000 CKM of distribution lines. The company has four manufacturing units located in Vadodara Gujarat, Deoli Maharashtra, and two in Silvassa, Dadra and Nagar Haveli. As of June 30, 2024, the company has 114 employees in the design and engineering team.