Raksan Transformers Limited IPO

Incorporated in 1995, Raksan Transformers initially focused on repair and servicing of distribution and power transformers before commencing transformer manufacturing in 2005-06. The company operates two manufacturing facilities in Rai, Sonepat, Haryana, with capabilities covering core cutting, winding, assembly, tank fabrication, oil filtration, welding and testing. Its product portfolio includes distribution transformers, power transformers, solar transformers and special-purpose transformers across different voltage ratings. The company also has in-house capabilities for core cutting and slitting, wire or strip drawing and transformer tank fabrication, together with an in-house testing laboratory. As of June 30, 2026, its order book stood at ₹329.68 crore across 83 orders, providing near-term revenue visibility. The promoters are Sanjeev Kanda, Dievam Singh Kanda and Renu Kanda.

Raksan Transformers IPO is a ₹150.50 crore book-built SME issue comprising a fresh issue of ₹120.47 crore and an offer for sale of ₹30.03 crore at a price band of ₹258 to ₹273 per share. The fresh issue proceeds are proposed to fund a new manufacturing facility at Liwaspur, working capital requirements, repayment of certain borrowings and general corporate purposes. At the upper price band, the reported pre-issue P/E is 13.39x and post-issue P/E is 16.98x, while FY2026 NAV is ₹46.97. The company has delivered strong growth, with revenue rising from ₹162.52 crore in FY2024 to ₹363.63 crore in FY2026 and PAT increasing from ₹7.59 crore to ₹33.60 crore. Key strengths include strong revenue growth, a substantial order book, in-house manufacturing capabilities and improving operating margins, while key risks include dependence on power-sector capex, customer concentration, execution requirements and SME-market liquidity. The IPO valuation appears moderate on earnings compared with several listed transformer peers, although investors should consider the smaller operating scale and execution risk associated with rapid expansion.