In a close examination of LIC Mutual Fund’s (LIC MF) latest portfolio disclosures, a mixed trend emerges regarding its holdings in Transrail Lighting across various schemes. While some schemes have increased their stake, others have kept their holdings, reflecting a diverse outlook on the infrastructure sector stock.
Increment in Holdings
LIC MF Flexicap Fund has shown increased confidence in Transrail Lighting, raising its stake from 3,62,198 shares in January to 3,76,892 shares in February. However, despite the increase in quantity, the market value of the holding saw a marginal decline from INR 19.82 crore in January to INR 19.49 crore in February. This could indicate either a price correction in the stock or profit booking at higher levels, followed by reinvestment at lower prices.
A similar uptrend is evident in the LIC MF Children’s Fund, which increased its holdings from 4,113 shares in January to 4,348 shares in February. However, the market value remained nearly flat at around INR 22.50 lakh, suggesting minor adjustments rather than a strategic position change.
Retain Stake
On the flip side, LIC MF Infrastructure Fund has kept its stake of 1,83,053 shares same in February, but the market value of its holdings declined from INR 10.02 crore to INR 9.47 crore. This hints at a fall in stock valuation rather than a reduction in quantity, suggesting that market conditions have led to the decrease in the fund’s asset value.
Similarly, LIC MF Multicap Fund saw a decline in market value. The fund kept 1,75,648 shares in February, same as the previous month. However, the market value dropped from INR 9.61 crore to INR 9.08 crore, pointing towards market-driven depreciation rather than a sell-off.
Key Takeaways
- Two schemes increased their stake – LIC MF Flexicap and LIC MF Children’s Fund.
- Two schemes retained their stake but saw a decline in valuation – LIC MF Infrastructure Fund and LIC MF Multicap Fund.
- The overall trend suggests cautious optimism in LIC MF’s approach to Transrail Lighting, with some funds increasing exposure while others maintained positions despite market valuation drops.
Transrail IPO Journey
Transrail has become a force to be reckoned with in the power transmission and distribution space with 4 decades of EPC experience across 58 countries. The numbers reflect the growth story with Q3 FY25 revenue jumping 62.9% YoY to INR 1,340.25 cr driven by strong domestic and international EPC. EBITDA was at INR 178.27 cr, reflecting operational efficiency and net profit more than doubled to INR 97.57 cr, indicating better execution and cost management.
A well-timed IPO of INR 838.91 cr and preferential issue of INR 482 cr has strengthened the capital structure and set it up for long-term growth. With a healthy order book and increasing international exposure, Transrail is creating a space in high voltage infrastructure and has built investor confidence for the long term.
Transrail Lighting launched its IPO on 19 December 2024; the issue was oversubscribed 80.7 times and delivered 27.14% returns on listing day. The stock made its all-time high of INR 677.15 per share on 9 January 2025, reflecting a return of 56.74% from the allotment price.
Conclusion
This diverse approach underlines LIC MF’s risk diversification strategy. While Flexicap and Children’s Fund have shown increased faith in the stock, Infrastructure and Multicap Funds appear to be treading carefully, possibly awaiting better valuation clarity before making further investment moves. The upcoming months will reveal whether this mix of strategic positioning and market-driven movements turns into a long-term bullish or cautious outlook for Transrail Lighting.
In the first two months of 2025, a total of 10 IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these 10 IPOs, three IPOs delivered negative returns. The average listing returns stand at 17.53%. It is quite low compared to IPOs listed in December 2024.
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