IPO Overview
Incorporated in 2005, IC Electricals Company Limited is engaged in the manufacturing of electronic equipment for railway applications and in providing engineering solutions to Indian Railways. The company offers a diverse range of electronic products including regulators, battery chargers, emergency lights, inverters, microprocessor-based control systems, and vigilance control devices, all compliant with the latest technical standards. In addition, the company manufactures key railway components such as alternators, traction motors, and permanent magnet alternators with controllers. IC Electricals also undertakes turnkey railway electrification projects, covering design, supply, erection, testing, and commissioning of 25 kV AC overhead equipment and traction substation systems. The company primarily operates on a Business-to-Government (B2G) model, catering mainly to government departments and ministries, including the Ministry of Railways.
The company is now launching its SME IPO on the NSE SME platform. IC Electricals IPO is an SME book building issue aggregating up to ₹47.91 crore. The IPO comprises a fresh issue of 48,39,600 equity shares with no Offer for Sale component. The price band is fixed at ₹94–₹99 per share. The IPO opens on 25 June 2026 and closes on 30 June 2026, with listing expected on 3 July 2026 on NSE SME.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME |
| IPO Open Date | 25 June 2026 |
| IPO Close Date | 30 June 2026 |
| Allotment Date | 1 July 2026 (Expected) |
| Refund Initiation | 2 July 2026 |
| Credit to Demat | 2 July 2026 |
| Listing Date | 3 July 2026 (Tentative) |
| Price Band | ₹94 – ₹99 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,37,600 (2 lots = 2,400 shares) |
| Issue Size | ₹47.91 – 48 crore |
| Fresh Issue | 48,39,600 shares |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue with no OFS component — all proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 50% |
| Non-Institutional Investors (NII) | 15% |
| Retail Individual Investors (RII) | 35% |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all funds raised will go directly to the company.
Objects of the Issue (Fund Utilization)
The IPO proceeds are primarily intended for working capital requirements, which is important for a business dependent on project execution, railway supplies, and government-linked contracts. groww
- Working capital requirements
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: NEXGEN Financial Solutions Pvt. Ltd.
- Registrar to the Issue: Skyline Financial Services Pvt. Ltd.
- Market Maker: Hem Finlease Pvt. Ltd.
Promoters & Management
Promoters include Sunil Kumar Verma, Renu Verma, SHBD LLP, and Safe System India Private Limited. Together, before the issue, the promoters hold 66.31 percent of the paid-up share capital.
Company Details
Key areas of expertise lie in Power Electronics, Instrumentation & Distribution, microprocessor-based power control systems, and railway electrification, supported by unique strengths including a dedicated Research and Development center for microprocessor-based railway equipment, compliance with latest technical standards, and successful execution of multiple railway electrification projects including the Gorakhpur–Kaptanganj–Valmiki Nagar section and Ara–Sasaram section. IC Electricals serves the Ministry of Railways and government departments through an operational philosophy prioritizing reliability, quality assurance, consistency, efficiency, customized cost-effective solutions, and advanced technology integration to address industry challenges like railway infrastructure modernization and safety standards compliance.
Sectors Served:
- Indian Railways (Ministry of Railways)
- Railway Electrification Projects
- Government Departments (B2G model)
Key Products & Solutions:
- Regulators, Battery Chargers, Emergency Lights, Inverters
- Microprocessor-based Control Systems & Vigilance Control Devices
- Alternators, Traction Motors, Permanent Magnet Alternators with Controllers
- Turnkey Railway Electrification (25 kV AC OHE & Traction Substation Systems)
Key Capabilities:
- A dedicated R&D team focuses on developing new products and enhancing the quality, performance, and reliability of existing offerings. Its innovation-driven approach improves operational efficiency, reduces costs and resource wastage, and supports the development of products suitable for both domestic and international markets.
- ISO 9001:2015 certified, with a robust Quality Management System ensuring products adhere to quality and reliability standards.
Order Book:
As of March 31, 2026, the company had an order book worth ₹175.63 crore.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹121.89 (standalone: ₹121.48) | ₹9.37 (standalone: ₹9.28) |
| FY26 | ₹143.81 | ₹14.10 |
In FY25, on a consolidated basis, revenue from operations was ₹121.89 crore and profit after tax was ₹9.37 crore, with net worth of ₹49.54 crore and EPS of ₹7.28. Borrowings stood at ₹55.79 crore.
Key Financial Metrics
- Revenue increased by 18% and profit after tax (PAT) rose by 50% between the financial year ending March 31, 2026 and March 31, 2025.
- As of August 31, 2025, the company had an order book of ₹158.48 crore in the product and project divisions.
- Government and railway-related contracts, including turnkey electrification schemes and equipment production, comprise the majority of revenues, reflecting heavy dependence on Indian Railways as a principal customer.
Company Strengths
- Exposure to railway electronics and electrification opportunities with improving financials, reasonable valuation, and a specialised B2G business model.
- Dedicated R&D center for microprocessor-based railway equipment, with successful execution of multiple railway electrification projects.
- ISO 9001:2015 certification with strong Quality Management System practices
- Healthy order book providing revenue visibility for upcoming quarters
- Management has a major thrust on high-margin business and discontinuing low-margin business, with the electronics division heading for higher growth and margins.
- Strong, specialized positioning in a niche government-linked railway segment with limited direct competition
Key Risks & Challenges
- Risks related to tender-based orders, working capital cycles, and dependence on public-sector customers.
- Heavy dependence on Indian Railways as a principal customer — government and railway-related contracts comprise the majority of revenues.
- The company has no truly comparable listed peers, making valuation comparisons (such as with Hind Rectifiers Ltd.) appear as an “eyewash” rather than an apples-to-apples comparison.
- Operations require issuance of bank guarantees to fulfill contractual obligations, making the company dependent on the availability of banking facilities and adequate collateral.
- SME IPO liquidity risk — limited secondary market trading volumes on NSE SME platform
- B2G business model carries risk of delayed payments, policy changes, and budgetary dependence on government spending in the railway sector
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.
