Raksan Transformers IPO Review: Key Details, Company Overview and Financials
- September 8, 2026
- Posted by: Lakshit Sharma
- Category: Market
Raksan Transformers IPO price band Rs 258 to Rs 273. Opens 10 Sep, closes 15 Sep 2026. Issue size Rs 150.50 Cr. Lists 18 Sep on BSE SME.
Quick Answer
The Raksan Transformers IPO is a Rs 150.50 crore bookbuilding SME issue priced between Rs 258 and Rs 273 per share, open for bidding from 10 to 15 September 2026. The Haryana based transformer manufacturer, with three decades of operating history, combines a Rs 120.47 crore fresh issue with a Rs 30.03 crore offer for sale by its promoter. Shares are proposed to list on BSE SME around 18 September 2026, on the back of FY26 profit growth of 65 percent and improving debt levels.
The Raksan Transformers IPO is a bookbuilding issue of Rs 150.50 crore, comprising a fresh issue of shares worth Rs 120.47 crore and an offer for sale of shares worth Rs 30.03 crore by promoter Sanjeev Kanda. The IPO will open for subscription on 10 September 2026 and close on 15 September 2026. The allotment is expected to be finalised on 16 September 2026, while the shares are proposed to list on the SME platform of BSE around 18 September 2026.
The Raksan Transformers IPO price band is set at Rs 258 to Rs 273 per share, with a lot size of 400 shares. Individual investors must apply for a minimum of 2 lots (800 shares), requiring an investment of Rs 2,18,400 at the upper price band.
Hem Securities Ltd. is the book-running lead manager for the Raksan Transformers IPO, while Bigshare Services Pvt. Ltd. is the registrar to the issue.
For detailed information on the company’s business, financials, risk factors and the proposed utilisation of proceeds, investors should refer to the Raksan Transformers IPO Red Herring Prospectus (RHP) before making an investment decision.
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Company Overview
Incorporated in 1995, Raksan Transformers Limited began with transformer repair and servicing before entering manufacturing during 2005-06. The company manufactures distribution transformers, power transformers, solar-application transformers and special-purpose transformers, and operates two facilities at Rai, Sonepat, Haryana, with an installed capacity of 15,00,000 KVA for distribution transformers and 1,350 MVA for power transformers.
Its operations span core cutting, coil winding, tank fabrication, assembly, oil filtration, welding and testing, supported by an in-house testing laboratory. Raksan Transformers is an approved vendor for more than 20 entities, and its products carry ISI and BEE STAR certifications alongside BIS compliance. As of 30 June 2026, the company employed 143 people, including 113 production employees.
Read on for the complete Raksan Transformers IPO details, including price band, lot size, listing timeline and the company’s financial track record.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 10 to 15 September 2026 |
| Allotment | Wed, 16 September 2026 |
| Listing Date | Fri, 18 September 2026 (tentative) |
| Price Band | Rs 258 to Rs 273 |
| Lot Size | 400 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh Issue cum Offer for Sale |
| Total Issue Size | Aggregating up to Rs 150.50 Cr |
| Fresh Issue | Aggregating up to Rs 120.47 Cr |
| Offer for Sale | Aggregating up to Rs 30.03 Cr |
| Listing Exchange | BSE SME |
(Compiled from the RHP/DRHP and market updates)
Industry Context
- India’s transformer manufacturing industry serves power transmission, distribution utilities, renewable energy projects and industrial customers, with demand closely linked to grid expansion and electrification programmes.
- Growing solar and other renewable energy capacity addition in India has created demand for specialised solar-application transformers, an adjacent growth category for established transformer manufacturers.
- Approved-vendor status with utilities, EPC contractors and public sector undertakings is an important barrier to entry in this industry, since customers typically qualify suppliers through rigorous testing and certification processes before awarding orders.
- Copper, aluminium, CRGO steel and transformer oil are key raw material inputs, and their price volatility is a recurring margin consideration across the transformer manufacturing industry.
- In-house testing laboratories and BIS, ISI and BEE STAR certifications help manufacturers demonstrate product quality and compliance, supporting their ability to win and retain government and utility contracts.
Business Strengths
Here are the key strengths investors evaluating the Raksan Transformers IPO should weigh:
- More than three decades of experience in the transformer industry, with revenue more than doubling between FY24 and FY26 and profit after tax rising 65 percent in FY26 to Rs 33.60 crore.
- Strong return ratios, with ROCE of 46.72 percent and RoNW of 43.41 percent for FY26.
- Improving balance sheet, with debt-to-equity declining from 0.53 to 0.27 over the period covered in the RHP.
- Approved-vendor status with more than 20 entities and BIS, ISI and BEE STAR certifications support its ability to win repeat government, utility and industrial orders.
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Business Risks
Alongside these strengths, the Raksan Transformers IPO also carries the following business risks:
- Government and utility orders may involve tender delays, execution risks and extended payment cycles, which can affect working capital and revenue recognition timing.
- Prices of copper, aluminium, CRGO steel and transformer oil can be volatile and affect the company’s margins.
- The Rs 30.03 crore offer for sale by the promoter provides no funds to the company, and the planned new manufacturing facility carries construction, commissioning and utilisation risk.
- As with any SME stock, Raksan Transformers shares may experience limited liquidity and post-listing volatility.
Financial Performance
The Raksan Transformers IPO comes after a period of sharp financial improvement. The company’s total income rose from Rs 162.52 crore in FY24 to Rs 363.63 crore in FY26, while profit after tax increased from Rs 7.59 crore to Rs 33.60 crore over the same period.
Raksan Transformers Ltd. – Financials (Rs in Lakh)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Total Income | 36,363.00 | 32,478.00 | 16,252.00 |
| EBITDA | 4,672.00 | 2,951.00 | 1,019.00 |
| EBITDA Margin (%) | 12.85% (computed) | 9.09% (computed) | 6.27% (computed) |
| Profit After Tax (PAT) | 3,360.00 | 2,038.00 | 759.00 |
| Net Worth | 7,742.00 | 4,407.00 | 2,370.00 |
| Total Borrowings | 2,074.00 | 2,351.00 | 981.00 |
| Return on Capital Employed (ROCE) (%) | 46.72% | Not separately disclosed | Not separately disclosed |
Amounts in Rs Lakh unless stated otherwise, compiled from published Raksan Transformers IPO financial disclosures. EBITDA margin figures are computed from disclosed absolute figures. ROCE for FY25 and FY24 was not separately disclosed in the available data.
Key Ratios and Metrics
The table below summarises the key ratios and metrics relevant to the Raksan Transformers IPO as of the latest reported period.
These ratios offer a quick snapshot of how the Raksan Transformers IPO is priced relative to the company’s profitability and net worth.
| KPI (Mar 31, 2026) | Value |
|---|---|
| Return on Capital Employed (ROCE) | 46.72% |
| Return on Net Worth (RoNW) | 43.41% |
| Debt-to-Equity Ratio | 0.27 (improved from 0.53) |
| Post-Issue EPS | Rs 16.08 |
| Post-Issue P/E (at upper price) | 16.98x |
Objects of the Offer
The company proposes to utilise the net proceeds from the Raksan Transformers IPO towards the following objects.
- Setting up a new manufacturing facility at Liwaspur, Sonepat (Rs 62.14 Cr)
- Funding working capital requirements (Rs 35.00 Cr)
- Repayment or prepayment of borrowings (Rs 7.28 Cr)
- General corporate purposes
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Conclusion
Here is the bottom line on the Raksan Transformers IPO.
The Raksan Transformers IPO reflects an established, three-decade-old transformer manufacturer with strong recent profit growth, healthy return ratios, an improving balance sheet, and a reasonable post-issue valuation.
However, dependence on government and utility orders, raw material price volatility, the offer for sale component, and execution risk tied to a new manufacturing facility are factors that could affect the investment case for the Raksan Transformers IPO.
Overall, investors weighing the Raksan Transformers IPO should evaluate the company’s business model, financial performance, industry outlook, competitive positioning, valuation and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Univest does not publish grey market premium figures. Grey market premium is an unofficial and unregulated indicator collected informally outside the stock exchanges. It is not published, verified or endorsed by SEBI, NSE or BSE, can vary widely between trackers, and is not always accurate.
FAQs
What are the Raksan Transformers IPO dates, and when will it list?
Ans. The Raksan Transformers IPO opens for subscription on 10 September 2026 and closes on 15 September 2026. The allotment is expected to be finalised on 16 September 2026, and the shares are tentatively scheduled to list on the SME platform of BSE around 18 September 2026.
What is the price band and minimum investment for the Raksan Transformers IPO?
Ans. The price band for the Raksan Transformers IPO is set at Rs 258 to Rs 273 per equity share, with a lot size of 400 shares. Individual investors must apply for a minimum of 2 lots, or 800 shares, requiring an investment of Rs 2,18,400 at the upper price band.
What does Raksan Transformers Limited manufacture?
Ans. Raksan Transformers manufactures distribution transformers, power transformers, solar-application transformers and special-purpose transformers, having entered manufacturing in 2005-06 after starting out in transformer repair and servicing in 1995. The company operates two facilities at Rai, Sonepat, Haryana, with an installed capacity of 15,00,000 KVA for distribution transformers and 1,350 MVA for power transformers, covering the full manufacturing process from core cutting and coil winding to tank fabrication, assembly, oil filtration and in-house testing.
Who are Raksan Transformers’ customers?
Ans. The company is an approved vendor for more than 20 entities, spanning government utilities, public sector undertakings, EPC contractors and industrial customers, and its products carry ISI and BEE STAR certifications alongside BIS compliance. This approved-vendor status and certification profile are important because customers in the transformer industry typically qualify suppliers through rigorous technical evaluation before placing orders.
How will Raksan Transformers use the proceeds from its fresh issue?
Ans. The largest allocation, Rs 62.14 crore, is earmarked for setting up a new manufacturing facility at Liwaspur, Sonepat, which should expand the company’s production capacity. A further Rs 35 crore is set aside for working capital requirements and Rs 7.28 crore for repayment or prepayment of borrowings, with the remaining amount from the fresh issue going towards general corporate purposes.
What are the key strengths highlighted for the Raksan Transformers IPO?
Ans. Raksan Transformers brings more than three decades of operating history in transformer manufacturing, and it has delivered strong recent growth, with total income more than doubling between FY24 and FY26 and profit after tax rising 65 percent in FY26 to Rs 33.60 crore. Return ratios are healthy, with ROCE of 46.72 percent and RoNW of 43.41 percent, and the company’s debt-to-equity ratio has improved from 0.53 to 0.27, reflecting a strengthening balance sheet ahead of the issue.
What are the main risks or concerns flagged for the Raksan Transformers IPO?
Ans. Because a large share of the company’s business involves government and utility customers, its order flow and payment cycles can be affected by tender delays and extended government payment timelines, which is a structural risk across this industry. Raksan Transformers is also exposed to volatility in copper, aluminium, CRGO steel and transformer oil prices, all key inputs for transformer manufacturing, and the Rs 30.03 crore offer for sale by the promoter will not bring in funds for the company. The company’s plan to set up a new manufacturing facility at Liwaspur, Sonepat also carries construction, commissioning and capacity-utilisation risk, on top of the usual SME liquidity considerations.
Who are the lead manager and registrar for the Raksan Transformers IPO?
Ans. Hem Securities Ltd. is the book-running lead manager for the Raksan Transformers IPO, responsible for structuring and managing the offer process. Bigshare Services Pvt. Ltd. is the registrar to the issue and will handle the allotment process and crediting of shares to successful applicants’ demat accounts.
Is the Raksan Transformers IPO a good investment?
Ans. Raksan Transformers offers exposure to an established transformer manufacturer with a long operating history, strong recent profit growth, healthy return ratios and an improving balance sheet, which are meaningful positives for investors interested in the power equipment sector. At the same time, dependence on government and utility orders, raw material price volatility, and execution risk tied to its new manufacturing facility are factors that warrant careful evaluation. As always, investors should study the RHP in detail and assess their own risk appetite before applying.