Raksan Transformers Ltd IPO
Capital Goods - Electrical Equipment
Price Band
₹258 – ₹273
Lot Size
400
Minimum Bid Quantity
800
Minimum Investment
₹218400
Issue Size
₹150.5Cr
Opens
2026-09-10
Closes
2026-09-15
Listing
18-09-2026
Subscription Status
Qualified Institutional Buyers
70.51 x
Non-Institutional Investor
44.96 x
Retail Individual Investor
27.92 x
Total
43.82 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE1S7M01017
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Raksan Transformers is an ISO 9001:2015 certified company, which manufactures transformers across different voltage ratings. Its product portfolio includes distribution transformers, power transformers, transformers for solar applications, and special purpose transformers, which are used in power generation, transmission and distribution networks, and various industrial and infrastructure projects. The company began operations in 1995, initially providing repair and servicing of distribution and power transformers, and started manufacturing transformers in 2005-06. As of March 31, 2026, the company operates two manufacturing facilities at HSIIDC Industrial Estate, Rai, District Sonepat, Haryana, with a combined area of approximately 3,037.5 sq. mtrs. The facilities have an installed production capacity of approximately 1,500,000 KVA for distribution transformers and 1,350 MVA for power transformers. The company also has a backward integration arrangement through its group company, SHR Powers Private Limited, which manufactures transformer tanks and bodies used in its production. Use of proceeds: The IPO consists of both a fresh issue of shares and an offer for sale (OFS). Proceeds from the OFS will go to the respective selling shareholders, whereas the net proceeds from the fresh issue will be utilised for the following purposes: Funding capital expenditure towards setting up a manufacturing facility at Liwaspur, Distt. Sonepat, Haryana — Rs 62.14 crore To meet working capital requirements — Rs 35 crore Repayment of certain borrowing availed by the company, in part or full — Rs 7.28 crore General corporate purposes
Pros
- • The company operates two manufacturing facilities in Rai, Sonepat, Haryana, with a combined area of approximately 3,037.5 sq. mtrs. It claims to have in-house capabilities for core cutting/slitting, wire or strip drawing, tank fabrication, product designing and testing, which reduces its dependence on third parties for certain manufacturing processes.
- • As of June 30, 2026, the company had 83 orders in hand with an aggregate order book of Rs 329.68 crore. The order book comprises orders for transformers and provides visibility into the company’s pending business.
- • The company had around 121 customers as of March 31, 2026, including government entities, power utilities, EPC contractors, and industrial customers. It is also an approved vendor for more than 20 entities, including power distribution corporations, public sector undertakings, and public utility companies.
Cons
- • A substantial portion of the company’s revenue comes from government and public utility customers, which contributed Rs 184.19 crore (50.73%), Rs 236.63 crore (72.99%), and Rs 90.34 crore (56.13%) to revenue from operations in FY26, FY25, and FY24, respectively. Any reduction in orders, delays in tendering, changes in government policies or budget allocations, or delays in payments from these customers could adversely affect the company’s revenue, profitability, order book, and cash flows.
- • A significant portion of the company’s revenue is generated through competitive bidding for contracts from government and public sector entities, with B2G revenue contributing 50.73%, 72.99%, and 56.13% of revenue from operations in FY26, FY25, and FY24, respectively. The company abstained from bidding for three consecutive tenders by Paschimanchal Vidyut Vitran Nigam Limited in June 2019. Inability to qualify for or win future tenders, increased pricing pressure, changes in eligibility criteria, or restrictions on bidding could adversely affect its order book, margins, and financial performance.
- • The company depends on a limited number of suppliers for its raw materials, with its top 10 suppliers accounting for 54.96% of total raw material procurement in FY26, compared with 63.22% in FY25 and 63.48% in FY24. Raw material consumption amounted to Rs 291.15 crore (80.18% of revenue from operations) in FY26, Rs 270.89 crore (83.55%) in FY25 and Rs 138.62 crore (86.13%) in FY24. The company does not have long-term supply agreements with its suppliers, and any disruption in supply or increase in raw material prices could adversely affect its production, margins, and financial performance.
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