E to E Transportation IPO: ₹84 Cr Issue Opens Dec 26

Introduction to E to E Transportation Infrastructure IPO

E to E Transportation Infrastructure Limited, a prominent engineering and system integration solutions provider for the railway sector, is set to launch its Initial Public Offering (IPO) on the NSE SME platform. The public issue aims to raise ₹84.22 crores through a fresh issue of 4,840,000 equity shares. The IPO will be open for subscription from December 26, 2025, to December 30, 2025. The company has fixed the price band for the issue at ₹164 to ₹174 per equity share, each with a face value of ₹10.

IPO Offer Details and Timeline

The IPO is a book-built issue and consists entirely of a fresh issue. The funds raised will be primarily used to meet working capital requirements and for general corporate purposes. The tentative listing date for the shares on the NSE SME exchange is January 2, 2026. Retail investors are required to apply for a minimum lot of 800 shares, which amounts to an investment of ₹139,200 at the lower price band and ₹278,400 at the upper price band for two lots (1600 shares). Hem Securities Ltd. is the book-running lead manager for the issue, while MUFG Intime India Pvt. Ltd. will serve as the registrar.

Company Overview and Business Operations

Founded in 2010, E to E Transportation Infrastructure Limited specializes in providing comprehensive solutions for the railway sector. The company's services cover the entire project lifecycle, including design, procurement, installation, testing, and maintenance. Its core areas of operation include Signaling and Telecommunications (S&T), Overhead Electrification (OHE), and Track Projects. The company serves a diverse client base, including various zones of Indian Railways, metro rail corporations, and public sector undertakings. Notable projects include platform screen door installations for Mumbai and Chennai Metros, CBTC signaling for Hyderabad and Nagpur Metros, and signaling upgrades for major industrial clients like Vizag Steel Plant.

Financial Performance Analysis

E to E Transportation Infrastructure has demonstrated strong financial growth. Between the financial years ending March 31, 2024, and March 31, 2025, the company's revenue increased by 47%, and its profit after tax (PAT) grew by 36%. As of September 30, 2025, the company's order book stood at ₹401.10 crores, comprising 50 ongoing contracts, indicating healthy revenue visibility.

Objectives of the IPO

The primary objective of the IPO is to raise capital to support the company's growth plans. The net proceeds from the fresh issue will be utilized for:

1. Meeting Working Capital Requirements: A significant portion, estimated at ₹70.00 crore, will be used to fund the company's growing working capital needs as it takes on larger projects.
2. General Corporate Purposes: The remaining funds will be used for general corporate purposes, which may include strategic initiatives, investments in technology, and other operational expenses.

Share Allocation and Promoter Holding

The IPO reserves shares for different categories of investors. Of the total 4,840,000 shares offered, 33.26% are reserved for Retail Individual Investors (RII), 14.25% for Non-Institutional Investors (NII), and 47.45% for Qualified Institutional Buyers (QIB). This QIB portion includes a 28.46% allocation for anchor investors. A 5.04% stake is reserved for the market maker. Prior to the IPO, the promoter holding stood at 45.19%, which will be diluted to 32.51% post-issue.

Grey Market Premium (GMP) and Market Sentiment

The Grey Market Premium (GMP) for the E to E Transportation Infrastructure IPO has shown positive sentiment. As of December 28, 2025, the GMP was reported at ₹145 per share. At the upper price band of ₹174, this suggests a potential listing premium of approximately 83.33%. While GMP is an unofficial indicator and subject to market fluctuations, it often reflects investor interest and demand for an IPO. Investors should, however, base their decisions on the company's fundamentals rather than relying solely on GMP.

Peer Comparison

E to E Transportation Infrastructure operates in a competitive landscape with other established players in the rail engineering and construction sector. A comparison with its peers provides context for its valuation and performance.

Conclusion

The E to E Transportation Infrastructure IPO offers investors an opportunity to participate in the growth of India's railway and metro infrastructure sector. The company's strong order book, consistent financial growth, and specialized expertise are key strengths. However, investors should also consider risks such as dependence on government contracts and the working-capital-intensive nature of the business. The IPO is scheduled to list on January 2, 2026, and its performance will be closely watched by the market.