Raksan Transformers

Founded in July 1995, Raksan Transformers began its journey as a repair and servicing entity for transformers. Over the decades, the company evolved from a service-based model to full-scale manufacturing, building transformers from scratch to meet growing industrial demands.

The company's core business model revolves around the design and production of a wide array of transformers. Its product portfolio includes distribution transformers, power transformers, and specialized units tailored for solar applications, which are critical for modern energy infrastructure.

Raksan caters to a high-profile client base, including government entities, power distribution corporations, public sector undertakings (PSUs), utility companies, and EPC contractors. This diversification across public and private sectors ensures a stable pipeline of orders.

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

The company is led by promoters Sanjeev Kanda, Dievam Singh Kanda, and Renu Kanda, who have steered the firm from a small repair shop into a significant regional player in the transformer manufacturing space.

Raksan Transformers is launching a book-built IPO to raise approximately ₹150.50 crore. The issue consists of a fresh issue of ₹120.47 crore and an offer for sale (OFS) of up to 11,00,000 equity shares. The price band is set at ₹258 to ₹273 per share, with a minimum retail lot size of 800 shares. The IPO opens on September 10, 2026, and closes on September 15, 2026, with listing on the BSE SME exchange scheduled for September 18, 2026.

The proceeds from the fresh issue are primarily earmarked for capital expenditure, with ₹71.91 crore allocated for a new manufacturing facility at Liwaspur, Sonepat, Haryana. Additionally, ₹39.00 crore will be used for working capital requirements and ₹7.91 crore for the repayment of borrowings.

Financial performance has shown aggressive growth over the last three years. Revenue increased from ₹162.52 crore in FY24 to ₹363.63 crore in FY26. More impressively, the Profit After Tax (PAT) jumped from ₹7.59 crore in FY24 to ₹33.60 crore in FY26, indicating strong operating leverage and margin expansion.

In terms of valuation, the company reports a strong EPS of ₹20.39 for FY26. While a specific P/E ratio is not explicitly provided, the company's ROE of 55.32% and ROCE of 46.72% place it in a high-efficiency bracket compared to its peers like Marsons and Supreme Power Equipment.

Key strengths include a robust growth trajectory, high return ratios, and a significant portion of the IPO proceeds being used for capacity expansion. However, investors should note the risks associated with SME listing liquidity and the inherent cyclicality of the power infrastructure sector.

Overall, the issue presents a balanced profile of high growth and disciplined capital allocation, though the SME platform typically carries higher volatility than the mainboard.