The Indian capital market continues to see a surge in initial public offerings (IPOs) as firms look to cash in on the recent surge in the equity market and strong listing performance by the newly debuted companies amid optimism over resilient economic growth. In a fresh development, Transrail Lighting and Manba Finance have filed a preliminary document with capital market regulator SEBI to raise the fund via the IPO route.
Transrail Lighting, an engineering, procurement and construction (EPC) company, looks to raise through a combination of fresh issuance of equity shares and an offer for sale (OFS) of shares by existing shareholders, while Manba Finance, a financial solutions providers, plans to garner capital via fresh equities only with OFS component.
Here’s all you need to know about upcoming IPOs
Transrail Lighting
The Mumbai- headquartered power distribution and transmission company plans to raise funds by offering equity shares of face value ₹2 each via IPO. The issue comprises a fresh issue of equity shares worth up to ₹450 crore and an offer for sale of up to 10,160,000 equity shares by Ajanma Holdings Private Limited, the promoter of the company.
The company proposes to utilise the net proceeds from the offer towards funding incremental working capital requirements up to ₹250 crore; meeting capital expenditure up to ₹90.90 crore; and balance amount for general corporate purposes.
Inga Ventures Private Limited, Axis Capital Limited, HDFC Bank Limited and IDBI Capital Markets & Securities Limited are the book running lead managers to the offer.
Transrail Lighting has a footprint in more than 58 countries like Bangladesh, Kenya, Tanzania, Niger, Nigeria, Mali, Cameroon, Finland, Poland, Nicaragua etc. including turnkey EPCs or supply projects. As of September 30, 2023, the company has undertaken EPC of 33,500 circuit kilometers (CKM) transmission lines and 30,000 CKM distribution lines, domestically and internationally. The company has presence in all the power transmission and distribution segments and majorly in high voltage and extra high voltage segments.
Manba Finance
The Mumbai-based RBI-registered NBFC, engaged in two-wheeler, used cars, small business and personal loan financing, looks to raise capital completely though the issuance of up to 1.57 crore shares of the face value of ₹10 each.
The proceeds from its fresh issuance will be used to augment the capital base to meet the company’s future capital requirements for onward lending and general corporate purposes.
As per the document filed with the SEBI, half of the issue is reserved for qualified institutional buyers, up to 15% for non-institutional bidders, and the remaining 35% for retail individual bidders.
Manba Finance, having an AUM size of more than ₹800 crore as on December 31, 2023, commenced its business operations as an NBFC in 1998 in Mumbai, Maharashtra. From 2009 onwards, it expanded its activities to include vehicle financing and currently operates across 65 locations in five states - Maharashtra, Gujarat, Rajasthan, Chhattisgarh, and Madhya Pradesh. The company primarily serves salaried and self-employed individuals.
The majority of Manba Finance's loan portfolio, around 99%, consists of new vehicle loans, with an average ticket size of around ₹0.80 lakhs. It specialises in providing financial solutions with quick turnaround times for loan approval and disbursement. The company has developed enduring relationships with over 850 dealers, including more than 60 EV dealers, across its operational states.
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