E to E Transportation IPO Opens Today with 75% Grey Market Premium
E to E Transportation Infrastructure's IPO opened for subscription with a price band of ₹164-174 per share, aiming to raise ₹84.22 crore. The railway engineering company shows strong market sentiment with 75% grey market premium, indicating potential listing at ₹304. The company demonstrated robust financial performance in FY25 with 47% revenue growth and maintains a strong order book of ₹401 crore.
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E to E Transportation Infrastructure's initial public offering opened for subscription today, generating significant investor interest with a strong grey market premium of 75%. The railway infrastructure company aims to raise ₹84.22 crore through this public issue, which is scheduled to list on the NSE SME platform on January 2, 2025.
Issue Structure and Pricing Details
The IPO comprises entirely of fresh equity shares, with the company issuing 48.40 lakh shares to the public. The pricing structure and investment requirements are detailed below:
| Parameter: | Details |
|---|---|
| Price Band: | ₹164 - ₹174 per share |
| Total Issue Size: | ₹84.22 crore |
| Fresh Issue: | 48.40 lakh equity shares |
| Subscription Period: | December 27 - December 30, 2024 |
| Allotment Date: | December 31, 2024 |
| Listing Date: | January 2, 2025 |
Retail investors must apply for a minimum of two lots, equivalent to 1,600 shares, requiring an investment of ₹2.78 lakh. Non-institutional investors face a higher threshold with a minimum application size of three lots or 2,400 shares, amounting to ₹4.18 lakh.
Grey Market Performance and Market Sentiment
The issue has demonstrated strong pre-listing momentum with shares commanding a grey market premium of ₹130 per share as of December 26. This translates to a potential listing price of ₹304, representing a premium of 74.71% over the upper price band of ₹174.
| Grey Market Indicators: | Details |
|---|---|
| Current GMP: | ₹130 per share |
| Implied Listing Price: | ₹304 per share |
| Premium Percentage: | 74.71% |
| Market Sentiment: | Strong positive |
Prior to the public opening, the company successfully completed its anchor investor round on December 24, 2024, raising ₹23.97 crore through allotment of 13.77 lakh shares.
Business Operations and Market Position
E to E Transportation Infrastructure, incorporated in 2010, operates as a comprehensive system integrator and engineering solutions provider specializing in railway sector projects. The company's service portfolio encompasses signaling and telecommunications, overhead electrification, track projects, private sidings, and system integration.
The company has established relationships with major clients including Indian Railways, metro rail corporations, public sector undertakings, and private infrastructure developers. Notable project completions include CBTC signaling systems for Hyderabad and Nagpur Metro, platform screen door installations for Mumbai Metro Line 3 and Chennai Metro Phase 1, and signaling modernization projects for industrial clients such as Vizag Steel Plant.
Financial Performance and Fund Utilization
The company reported strong financial performance in FY25, with total income rising to ₹253.82 crore compared to ₹172.50 crore in the previous financial year. EBITDA grew significantly to ₹26.57 crore from ₹18.34 crore, while net profit increased to ₹13.99 crore from ₹10.26 crore in the preceding year.
| Financial Metrics: | FY25 | FY24 | Growth |
|---|---|---|---|
| Total Income: | ₹253.82 cr | ₹172.50 cr | 47.15% |
| EBITDA: | ₹26.57 cr | ₹18.34 cr | 44.87% |
| Net Profit: | ₹13.99 cr | ₹10.26 cr | 36.35% |
The IPO proceeds will be allocated strategically with ₹70.00 crore designated for working capital requirements and ₹14.22 crore for general corporate purposes. Given the project-based nature of railway engineering contracts, working capital funding represents a critical requirement for successful contract execution and business growth.
Market Intermediaries and Listing Details
Hem Securities Limited serves as the book running lead manager for the issue, while MUFG Intime India has been appointed as the registrar. The shares will commence trading on the NSE SME platform, providing investors with a specialized marketplace for small and medium enterprise investments.
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