IPO Overview
Incorporated in 1995, Raksan Transformers Limited is engaged in the manufacturing of transformers across various voltage ratings. The company specialises in the production of distribution transformers, power transformers, transformers for solar applications, and special-purpose transformers, catering to the transmission and distribution requirements of diverse sectors. The company began by repairing and servicing distribution and power transformers, and started manufacturing them in 2005–06. Raksan Transformers serves a diverse customer base comprising government entities, power distribution corporations, public sector undertakings, utility companies, EPC contractors, and industrial clients. The company is an approved vendor for more than 20 entities, including power distribution corporations, PSUs, and public utility companies.
The Rs. 150.50 crore IPO comprises a fresh issue of Rs. 120.47 crore and an offer for sale of Rs. 30.03 crore by promoter Sanjeev Kanda. The price band is Rs. 258–Rs. 273 per share. The IPO opens on September 10, 2026 and closes on September 15, 2026. Raksan Transformers IPO will list on BSE SME on September 18, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 10 September 2026 |
| IPO Close Date | 15 September 2026 |
| Allotment Date | 16 September 2026 (Expected) |
| Listing Date | 18 September 2026 (Tentative) |
| Price Band | ₹258 – ₹273 per share |
| Face Value | ₹10 per share |
| Lot Size | 400 shares |
| Minimum Investment (Retail) | ₹2,18,400 (at upper price) |
| Issue Size | ₹150.50 crore |
| Fresh Issue | ₹120.47 crore (44,12,800 shares) |
| Offer For Sale (OFS) | ₹30.03 crore (11,00,000 shares) |
Note: The company will not receive any proceeds from the OFS component. Only the fresh issue proceeds will flow into the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
The offer for sale of 11,00,000 equity shares is by Sanjeev Kanda, the promoter selling shareholder. The company will not receive proceeds from the offer-for-sale component. Promoter holding will decline from 100% to 73.61% after the IPO, while public shareholders will hold 26.39%.
Objects of the Issue (Fund Utilization)
The company plans to use the fresh issue proceeds as follows:
- Capital expenditure towards setting up a new manufacturing facility at Liwaspur, Sub-Tehsil Rai, Distt. Sonepat, Haryana — ₹62.14 crore
- Working capital requirements — ₹35.00 crore
- Repayment / prepayment of existing borrowings — ₹7.28 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Hem Securities Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
- Market Maker: Hem Finlease Pvt. Ltd.
Promoters & Management
The promoters are Sanjeev Kanda, Dievam Singh Kanda, and Renu Kanda. The promoter family brings over 30 years of experience in the transformer manufacturing industry, having built the business from a repair and servicing shop in 1995 to a full-scale transformer manufacturer with two production units in Haryana.
Registered Office: Shop No. 16, Local Shopping Centre-3, Sector-8, Rohini, North Delhi, New Delhi – 110085.
Company Details
Raksan Transformers Limited is an ISO 9001:2015 certified transformer manufacturer making distribution, power, solar, and special-purpose transformers. As of March 31, 2026, the company operates through two manufacturing units spread across approximately 2,025 sq. mtrs. and 1,012.5 sq. mtrs., with a combined installed production capacity of approximately 15,00,000 KVA for distribution transformers and 1,350 MVA for power transformers.
Sectors Served:
- Power Generation & Transmission
- Power Distribution Corporations & State Utilities
- Public Sector Undertakings (PSUs)
- EPC Contractors & Infrastructure Projects
- Solar & Renewable Energy Applications
- Industrial & Commercial Clients
Key Products:
- Distribution Transformers
- Power Transformers
- Solar Application Transformers
- Special Purpose Transformers
Key Capabilities:
The facilities are equipped with machinery for core cutting, coil winding, assembly, tank fabrication, oil filtration, welding, and testing. The company also has in-house facilities for core cutting/slitting, wire or strip drawing, and tank fabrication, along with an in-house testing laboratory for conducting routine and type tests.
Certifications:
- ISO 9001:2015
- ISI Certification (BIS compliant products)
- BEE STAR Rating Certification
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹162.52 | ₹7.59 |
| FY25 | ₹324.78 | ₹20.38 |
| FY26 | ₹363.63 | ₹33.60 |
Key Financial Metrics
Profit has grown more than four times in two years, from Rs. 7.59 crore in FY2024 to Rs. 20.38 crore in FY2025 and Rs. 33.60 crore in FY2026. Sales have more than doubled over the same period, from Rs. 162.52 crore in FY2024 to Rs. 363.63 crore in FY2026.
- RoCE: 43.09% | RoNW: 46.23%
- Post-issue P/E: 16.98x | Post-issue EPS: ₹16.08 | Market Capitalisation: ₹570.39 crore
- Total borrowing was Rs. 20.74 crore against a net worth of Rs. 77.42 crore as on 31 March 2026 — low debt with improving leverage ratios.
Company Strengths
- More than 30 years of experience in the transformer industry, having started operations in 1995 — providing deep domain expertise and established client trust.
- Revenue has more than doubled and profit has grown more than four times in just two years, reflecting strong execution and operational leverage.
- Approved vendor for more than 20 entities including power distribution corporations, PSUs, and public utility companies — providing strong demand visibility and recurring order flows.
- In-house facilities for core cutting/slitting, wire drawing, tank fabrication, and an in-house testing laboratory — supporting backward integration, cost control, and quality assurance.
- Strong return ratios with RoCE of 43.09% and RoNW of 46.23%, and a low debt-to-equity ratio of 0.27 as of March 2026.
- As of March 31, 2026, the company had 362 employees on its payroll and an additional 223 contract employees — reflecting a well-staffed and scalable operational structure.
Key Risks & Challenges
- Sales growth has slowed sharply — total income rose only 12% in FY2026 while profit rose 65%, so the profit improvement came from margin expansion rather than from selling more.
- The profit margin is thin at 6.28%, which is normal in transformer manufacturing but leaves little room on fixed-price orders.
- Both existing units are small and both are located at Rai in Sonepat, so all production currently sits in one geographic location — creating concentration risk in manufacturing.
- Heavy dependence on government and PSU orders — any slowdown in public sector power capex or delays in order releases can directly impact revenue and cash flows.
- Raw material price volatility — transformer manufacturing relies on copper and CRGO steel, prices of which are globally driven and can squeeze margins on fixed-price contracts.
- Rs. 30.03 crore represents an offer for sale and will not benefit the company — indicating partial promoter exit at IPO stage.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
