Raksan Transformers

Founded in July 1995, Raksan Transformers began its journey as a specialized firm focused on the repair and servicing of transformers. Over nearly three decades, the company evolved from a service-oriented business into a full-scale manufacturer, expanding its capabilities to build transformers from the ground up.

The company's core product portfolio is diverse, encompassing distribution transformers and power transformers, as well as specialized units designed for solar applications and other specific power network requirements. This versatility allows them to cater to a wide array of electrical infrastructure needs.

Raksan's client base is predominantly institutional, consisting of government entities, power distribution corporations, public sector undertakings (PSUs), utility companies, and EPC contractors. This provides the company with a stable B2B and B2G revenue stream.

Operationally, the company manages two manufacturing facilities located in Rai, Sonepat, Haryana. These plants are equipped with comprehensive industrial machinery for core cutting, coil winding, assembly, tank fabrication, oil filtration, welding, and rigorous testing to ensure quality standards.

The business is led by its promoters, Sanjeev Kanda, Dievam Singh Kanda, and Renu Kanda, who have steered the company from a local repair shop to a recognized manufacturer in the transformer industry.

Raksan Transformers is launching a book-built IPO to raise approximately ₹150.50 Crores. The issue is structured with a significant fresh issue of ₹120.47 Crores and an offer for sale (OFS) of 11,00,000 shares. The price band is set between ₹258 and ₹273 per share, with a minimum lot size of 800 shares. The IPO is scheduled to open on September 10, 2026, and close on September 15, 2026, listing on the BSE SME platform on September 18, 2026.

The proceeds from the fresh issue are primarily earmarked for growth and debt management. Specifically, ₹71.91 Crores will be used for capital expenditure to set up a new manufacturing facility at Liwaspur, Sonepat, Haryana. Additionally, ₹39.00 Crores is allocated for working capital and ₹7.91 Crores for the repayment of certain borrowings.

Financial performance has shown an impressive upward trajectory. Revenue grew from ₹162.52 Crores in FY24 to ₹363.63 Crores in FY26. Even more notable is the PAT growth, which surged from ₹7.59 Crores in FY24 to ₹33.60 Crores in FY26, indicating significant scaling in operational efficiency.

From a valuation perspective, the company boasts a very high ROE of 55.32% and ROCE of 46.72%. While a formal P/E ratio was not provided in the raw data, the EPS for FY26 stands at ₹20.39. Compared to peers like Shilchar Technologies and Marsons Limited, Raksan shows competitive profitability metrics.

Key investment strengths include the strong growth in net profits and the strategic expansion of manufacturing capacity. However, investors should be mindful of the inherent risks associated with SME listings, including lower liquidity compared to mainboard stocks and dependence on government contracts.

Overall, the IPO presents a balanced profile with high growth and significant promoter skin in the game, as they maintain a substantial holding post-issue.