A three-decade-old Haryana-based transformer maker opens its Rs 150.50 crore BSE SME issue on September 10
Raksan Transformers Ltd (RTL) is an ISO 9001:2015 certified manufacturer of transformers across different voltage ratings — a direct play on India’s power transmission, distribution and electrification build-out.
Its product range spans distribution transformers, power transformers, transformers for solar applications, and special-purpose transformers, all serving critical functions in power generation, transmission and distribution networks across diverse industrial and infrastructure projects.
The company has a long, evolving operating history. Incorporated in 1995, RTL began in transformer repair and servicing before entering manufacturing in 2005–06, establishing its first facility at Rai, Sonepat, and later a second facility in the same industrial estate to expand capacity.
Combined installed capacity stands at 15,00,000 KVA for distribution transformers and 1,350 MVA for power transformers, with in-house operations covering core cutting, coil winding, tank fabrication, assembly, oil filtration, welding and testing, plus a testing laboratory for quality control.
Backward integration is a genuine strength. Group company SHR Powers manufactures transformer tanks and bodies — key components — enabling RTL to optimise production, achieve cost efficiencies, control its supply chain and reduce reliance on external suppliers.
Its products comply with BIS requirements and carry ISI and BEE STAR certifications, supporting long-term relationships with a wide customer base including government entities, utility companies, EPC contractors and industrial clients.
RTL is an approved vendor for over 20 entities (power distribution corporations, PSUs and public utilities), running a B2B, B2G and B2C model with the first two dominating revenue.
The forward visibility is meaningful. As of June 30, 2026, RTL had 83 orders valued at Rs 329.68 crore, giving strong revenue coverage. It had 143 employees as of that date, and the promoter is Sanjeev Kanda.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 10, 2026 |
| Issue Closes | September 15, 2026 |
| Listing | BSE SME |
| Listing Date | September 18, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 258 – Rs 273 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 150.50 crore (55,12,800 shares) |
| Fresh Issue | Rs 120.47 crore (44,12,800 shares) |
| Offer for Sale | Rs 30.03 crore (11,00,000 shares) |
| Min. Application | 800 shares (multiples of 400 thereafter) |
| Min. Retail Investment | Rs 2,18,400 |
| Post-IPO Market Cap | Rs 570.39 crore |
| IPO as % of Post-IPO Capital | 26.39% |
| Lead Manager | Hem Securities Ltd. |
| Market Maker | Hem Finlease Pvt. Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
The issue is majority fresh (Rs 120.47 crore) with a Rs 30.03 crore OFS. From the fresh proceeds, RTL will utilise Rs 62.14 crore for capex on setting up a new manufacturing unit, Rs 35.00 crore for working capital, Rs 7.28 crore for repayment of certain borrowings, and the rest for general corporate purposes.
The capacity-plus-working-capital use is a positive. Post-IPO, paid-up equity capital rises from Rs 16.48 crore to Rs 20.89 crore.
Price Band Check
At the upper band of Rs 273, on FY26 earnings the issue is valued at a P/E of about 16.98x, with a P/BV of 5.81 on the March 31, 2026 NAV of Rs 46.97 (post-IPO NAV disclosure is missing). On the cleaner FY25 base the P/E jumps to 28.00x — so on recent average earnings, analysts read the issue as fully priced.
The Raksan Transformers IPO GMP made a high of ₹30 (September 12) and a low of ₹25 (September 8), and stood at around ₹25–26 in the days around opening.
As always, GMP is unofficial, unregulated and unendorsed, and for a thin SME grey market can move on low volume.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 162.52 | 324.78 | 363.63 |
| Net Profit (PAT) | 7.59 | 20.38 | 33.60 |
| PAT Margin (%) | 4.72 | 6.28 | 9.25 |
| RoCE (%) | 34.00 | 43.09 | 46.72 |
The financials show explosive but potentially unsustainable growth. Total income doubled from Rs 162.52 crore in FY24 to Rs 324.78 crore in FY25, then rose to Rs 363.63 crore in FY26, while PAT surged from Rs 7.59 crore to Rs 33.60 crore over two years — more than quadrupling. PAT margin nearly doubled from 4.72% to 9.25%, and RoCE climbed to a remarkable 46.72%.
The company reported an average EPS of about Rs 15.08 and an average RoNW of 42.45% over three fiscals. The company paid a 30% dividend for FY25 and skipped FY24 and FY26, adopting a dividend policy in August 2025.
Peer Comparison
Marsons, Shilchar Techno and Supreme Power are its peers, trading at P/Es of roughly 52.5x, 34.1x and 27.1x (as of September 9, 2026). These differ in scale and product mix, so the comparison isn’t strictly apples-to-apples — but RTL’s ~17x FY26 P/E sits below all three, which lends the valuation some cover.
Risks to Consider
Margin/earnings sustainability is the headline risk. PAT more than quadrupling and margins nearly doubling over FY24–FY26, with much of the surge in the pre-IPO period, raises real questions about whether this profitability can persist — which would make even the ~17x FY26 multiple look expensive if earnings normalise.
Order concentration and B2G dependence. Revenue is dominated by B2B and B2G work with government entities, utilities and EPC contractors, so demand is tender-driven and lumpy, and the Rs 329.68 crore order book, while healthy, concentrates future revenue in a set of large orders.
Rising trade receivables raise a cash-conversion concern (common with government/utility customers), and the Rs 64.24 crore contingent liability is significant relative to the company’s size — both warrant scrutiny.
Raw-material price volatility is structural. Transformers are exposed to copper, CRGO steel and aluminium prices; input-cost swings can compress the recently-expanded margins if not passed through.
Execution and under-utilisation risk. The Rs 62.14 crore new-unit capex must translate into utilised capacity and orders to justify the raise; delays or slow demand off-take could weigh on returns.