As we approach the end of the year, December has become a hot month for investors, with the market bustling with IPO activity. Along with several other IPOs in the pipeline, two mainboard IPOs – Transrail Lighting and Sanathan Textiles are opening for subscription today (December 19), with IPOs running at the same time. Both the IPOs will close its bidding window on December 23.
Let’s take a look at the key details of each issue and understand which one is the better choice.
Grey Market Premium
As per the recent trends, on the first day of bidding for the two IPOs, Transrail Lighting’s grey market premium (GMP) is currently trading at Rs 145, indicating an estimated listing price of Rs 577, or a 33.56 per cent potential gain upon listing. On the flip side, the GMP of Sanathan Textiles is trading at Rs 40, indicating an estimated listing price of Rs 361, or a 12.44 per cent potential gain.
Issue Size and Structure
Transrail Lighting IPO issue size stands at Rs 838.91 crores, with a mix of fresh issue (0.93 crore shares) and an offer for sale (1.02 crore shares). The price band for the mainboard issue is set between Rs 410 to Rs 432 per share.
The Sanathan Textiles IPO has a slightly smaller issue size of Rs 550 crores and offers a combination of a fresh issue (1.25 crore shares) and an offer for sale (0.47 crore shares). The price band of the issue is set between the range of Rs 305 to Rs 321 per share.
Minimum Investment and Lot Size
For Transrail Lighting, the minimum lot size is 34 shares, totaling to a sum of Rs 14,688 for retail investors, and for the Sanathan Textiles IPO, the minimum lot size for retail investors is 46 shares, requiring an investment of Rs 14,766.
About the company
Talking of the company profile, both the company operates in a different sector. Transrail Lighting is an engineering and construction company, specialising itself with services in power transmission, distribution, and railway. As of now, it has operations in 58 countries. From FY 2023 to FY 2024, the company reported a revenue surge by 30.2 per cent, and their profit after tax (PAT) increased by 116.8 per cent .
Meanwhile, Sanathan Textiles is a player in the polyester and cotton yarn manufacturing sector. It exports its products to 14 countries and serves diverse industries, from automotive to healthcare. The company specialises in technical textiles used in construction, sports, and protective clothing.
Anchor investors
Prior to the IPO opening its window, Transrail Lighting raised Rs 245.97 crores from anchor investors. Similarly, on the other hand, Sanathan Textiles has secured Rs 165 crores from anchor investors.
Both Transrail Lighting and Sanathan Textiles present unique investment opportunities, each with its own set of strengths and weaknesses. At the end of the day, the choice between the two IPOs depends on an investor’s risk appetite, sector preference, and financial goals.