A Salem, Tamil Nadu-based maker of traction power supply equipment for railway electrification is raising Rs 33.98 crore through a BSE SME issue.
Vans Electroengineerings is an ISO 9001:2015-certified manufacturer and supplier of components for traction power supply and overhead equipment systems. These are used in Indian Railways’ electrification infrastructure and metro systems, and also in renewable energy systems.
Its main customers are Indian Railways and railway contractors. The company was incorporated as a private limited company on February 7, 2022, and converted into a public limited company in May 2026.
Its product range is approved by the Research Designs and Standards Organisation (RDSO) for use in traction substations, sectioning posts, feeding posts and other railway electrification applications.
The range includes single-pole and double-pole vacuum circuit breakers and single-pole and double-pole vacuum interrupters. The company also makes loco VCBs, and ring main units (RMUs) and vacuum bottles are under development.
VEL runs from a single registered office and manufacturing facility in Salem, Tamil Nadu, where it makes vacuum circuit breakers and vacuum interrupters.
The plant has a busbar multi-processing machine, a horizontal bandsaw machine and other handling tools, along with in-house testing and quality-control infrastructure.
The company has also used the Korea Electrotechnology Research Institute (KERI) in South Korea and the Central Power Research Institute (CPRI) in Bangalore for testing to confirm compliance with international standards, including IEC 62505-1:2016 and IEC 62271-100.
The Central Organisation for Railway Electrification (CORE) has approved VEL as a “Developmental Vendor” for its products, and it has since been upgraded to “Approved Vendor” status for some of them.
These approvals allow it to take part in railway procurement. RDSO, Lucknow has also approved it to manufacture and supply vacuum circuit breakers and vacuum interrupters. Its order book stood at Rs 50.62 crore as of September 5, 2026, and it had 33 employees as of August 31, 2026.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 29, 2026 |
| Issue Closes | October 1, 2026 |
| Allotment (expected) | October 5, 2026 |
| Listing | BSE SME |
| Listing Date (tentative) | October 7, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 112 – Rs 118 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 33.98 crore (28,80,000 shares, entirely fresh) |
| Employee Reservation | 48,000 shares |
| Market Maker Reservation | 1,46,400 shares |
| QIB Portion | Not more than 13,41,600 shares |
| HNI Portion | Not less than 4,03,200 shares |
| Retail Portion | Not less than 9,40,800 shares |
| Lot Size | 1,200 shares |
| Min. Retail Application | 2,400 shares (2 lots) |
| Min. Retail Investment | Rs 2,83,200 |
| Post-IPO Market Cap | Rs 128.38 crore |
| IPO as % of Post-IPO Capital | 26.47% |
| Lead Manager | Hem Securities Ltd |
| Market Maker | Hem Finlease Pvt Ltd |
| Registrar | Bigshare Services Pvt Ltd |
| Syndicate Member | Hem Finlease Pvt Ltd |
From the net proceeds, VEL will use Rs 25.00 crore for working capital and the rest for general corporate purposes. The company raised Rs 9.49 crore from anchor investors, whose bidding took place on September 28, 2026.
Post-IPO, paid-up equity capital rises from Rs 8.00 crore (80,00,000 shares) to Rs 10.88 crore (1,08,80,000 shares).
After its initial issue at par, the company issued 3:1 bonus shares in June 2026. The promoters’ average acquisition cost is shown as NA.
Price Band Analysis
At the Rs 118 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of 23.79x, or 74.21x on FY25 earnings. The P/BV is 10.30 on the March 31, 2026 NAV of Rs 11.46. The post-IPO market cap is Rs 128.38 crore.
Analysts consider the issue aggressively priced on the basis of its recent average earnings.
GMP Watch
As per market channels, the Vans Electroengineerings IPO GMP is ₹45. That is about 38.14% over the upper band and indicates a listing price of around ₹163.
GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 2.76 | 13.82 | 23.19 |
| Net Profit (PAT) | 0.02 | 1.73 | 5.39 |
| PAT Margin (%) | 0.83 | 12.75 | 23.61 |
| RoCE (%) | 2.10 | 53.51 | 63.96 |
Total income rose from Rs 2.76 crore in FY24 to Rs 13.82 crore in FY25 and Rs 23.19 crore in FY26. Net profit rose from Rs 0.02 crore to Rs 1.73 crore and then Rs 5.39 crore. The PAT margin increased from 0.83% in FY24 to 12.75% in FY25 and 23.61% in FY26, and RoCE went from 2.10% to 63.96% over the same period.
Trade receivables stood at Rs 13.14 crore as of March 31, 2026, against FY26 total income of Rs 23.19 crore. Over the last three fiscals, the company reported an average EPS of Rs 4.57 and an average RoNW of 44.99%. It hasn’t paid any dividends during the reported periods, and it adopted a dividend policy in June 2026.
Peer Comparison
The offer document says the company has no listed peers to compare with.
Risks to Consider
A short operating history. The company was incorporated in February 2022, and its total income was Rs 2.76 crore in FY24.
High receivables. Trade receivables of Rs 13.14 crore as of March 31, 2026 compare with FY26 total income of Rs 23.19 crore, and Rs 25.00 crore of the proceeds is earmarked for working capital.
Customer and approval dependence. Sales go mainly to Indian Railways and railway contractors and depend on railway electrification spending and on keeping CORE and RDSO approvals. Some products still have only “Developmental Vendor” status.
Single facility and a small team. All manufacturing takes place at one facility in Salem, Tamil Nadu, and the company had 33 employees as of August 31, 2026.
Valuation and SME-specific risks. The issue is priced at 10.30 times pre-IPO book value and 74.21 times FY25 earnings, and post-IPO NAV data is missing from the offer documents. The minimum retail investment is Rs 2.83 lakh, and liquidity on the SME platform is limited.
This article is for informational purposes and is not personalised investment advice; investors should do their own due diligence or consult a SEBI-registered adviser before acting.
