Transformers and Rectifiers Lists on Dec 28: Moneycontrol.com

Transformers and Rectifiers to list on Dec 28

After receiving excellent response to its initial public offering, Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission, distribution transformers, industrial transformers and a wide range of speciality transformers, will list on the bourses on December 28.

The issue price has been fixed at Rs 465 per equity share (at the upper end of the price band) for its initial public offering (IPO) of 29,95,000 equity shares of Rs 10 each for cash, at a premium of Rs 455 per equity share. The price band was between Rs 425 to Rs 465 per equity share. The issue was over-subscribed 91.31 times. The qualified institutional bidders (QIBs) portion was over-subscribed by approximately around 111 times; the non institutional bidders portion was over-subscribed by approximately 122 times; the retail bidder portion was oversubscribed by approximately around 58 times.

The issue got bids for 27.35 crore shares as against 29.95 lakh shares on offer. The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange. The objects of the proposed Issue are to finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers, to part-finance incremental working capital requirements. Enam Securities Private Limited is the sole book running lead manager to the issue.

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Transformers & Rectifiers likely to list above Rs 700

After receiving excellent response to its initial public offering, Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission, distribution transformers, industrial transformers and a wide range of speciality transformers, will list on the bourses on December 28.
Experts told Moneycontrol.com that the stock is expected to list around Rs 700-750 and advised to hold for long term, if one has capacity.

According to R S Iyer of K R Choksey Securities, "Transformers is expected to list around Rs 600-700. The industry is doing well and will do well in future as well, so one, who has capacity, can hold for long term."

Manish Bhatt of Prabhudas Lilladher said, "Transformers may list with premium of Rs 300-350 over its offer price of Rs 465 per share. One should hold the stock with medium to long term view."

"The company is presently manufacturing transformers upto 220 kV class with an installed capacity of 7,200 MVA, through its two manufacturing facilities located near Ahmedabad. Now the company is setting up a new plant of 220 kV and 400 kV class with a capacity of 16,000 MVA per annum with an estimated expenditure of Rs 67 crore. The company is expected to list at a premium. In case of aggressive listing partial profits can be booked. Investors can also be invested in the company with a long term view", Arpit Agrawal Head of Research, Arihant capital markets said.

"Transformers and Rectifiers is likely to list at Rs 760 as against its issue price of Rs 465. Profit booking is advised at these levels", Investment Advisor, S P Tulsian said.

The issue price has been fixed at Rs 465 per equity share (at the upper end of the price band) for its initial public offering (IPO) of 29,95,000 equity shares of Rs 10 each for cash, at a premium of Rs 455 per equity share. The price band was between Rs 425 to Rs 465 per equity share. The issue was over-subscribed 91.31 times.

The objects of the proposed Issue are to finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers, to part-finance incremental working capital requirements. Enam Securities Private Limited is the sole book running lead manager to the issue.


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