Raksan Transformers Ltd. IPO: issue size, price band, subscription, financials, and use of proceeds

Raksan Transformers Limited, an ISO 9001:2015-certified transformer manufacturer, came to the market with an SME (small and medium enterprises) IPO of ₹150.50 crore at a price band of ₹258 to ₹273 per share. The issue opened on 10 September 2026 and closed on 15 September 2026, with listing on 18 September 2026. The offer combined a fresh issue of ₹120.47 crore and an offer for sale (OFS) of ₹30.03 crore. The stock’s listed price was ₹273, translating into a 0% listing gain versus the upper end of the price band.

What Raksan Transformers does and who it sells to

Raksan Transformers Limited manufactures transformers used in electricity transmission and distribution. Its disclosed product portfolio includes distribution transformers, power transformers, solar-application transformers, and other special-purpose transformer units.

The company’s customer mix includes government utilities and private customers, including engineering, procurement and construction (EPC) companies. This positioning ties a meaningful part of demand to tender-based procurement and project execution cycles in the power sector.

Manufacturing footprint, in-house capabilities, and backward integration

Raksan operates two manufacturing facilities in Rai, Sonipat (Haryana). It highlights in-house design and testing capabilities, which are relevant in a transformer business where specifications and acceptance testing can be customer- and tender-driven.

The company also discloses backward integration through a group entity that supplies key components such as transformer tanks. This structure is intended to support execution by reducing dependence on external vendors for certain components.

Alongside its existing footprint, the company states that construction of a new manufacturing facility at Village Liwaspur, Sonipat (Haryana) started in 2026, which is linked to the stated IPO objectives.

Track record and milestones disclosed

Raksan traces its operating history to 1995, when it was incorporated as Raksan Transformers Private Limited. It shifted its registered office from Punjab to the National Capital Territory of Delhi in 2008.

For transformer procurement—especially for utilities—product certifications and approvals are a recurring requirement. The company discloses the following milestones in this context:

It obtained BEE (Bureau of Energy Efficiency) certifications in 2009 and received BIS (Bureau of Indian Standards) certification IS 1180 (Part 1:2014) in 2016. It achieved ISO 9001:2015 certification in 2017. The company also states it increased production capacity up to 12.5 MVA, 33/11 kV class transformers in 2017.

In 2019, it received manufacturer approval from PGCIL (Power Grid Corporation of India Limited) for 11 kV distribution transformers up to 400 kVA class. In 2023, it supplied transformers via India-based customers/EPC companies to African markets including Nigeria.

In 2025, the company converted from private limited to public limited and was renamed Raksan Transformers Limited.

IPO structure, reservations, subscription outcome, and GMP observations

The Raksan Transformers IPO was an SME issue with a lot size of 400 shares. The category split disclosed for the issue was 50% for QIBs (Qualified Institutional Buyers), 15% for NIIs (Non-Institutional Investors), and 35% for retail individual investors.

By the close of the issue, the IPO was subscribed 1.31 times overall. Subscription was concentrated in the QIB segment at 3.87 times, while the NII and retail categories were subscribed at 0.16 times and 0.35 times, respectively.

Ahead of listing, grey market premium (GMP) observations provided across the available dates (15 September 2026 to 18 September 2026) moved from ₹61 at one point to the low double digits closer to listing, with the observations in the latest window ranging between ₹9 and ₹12 against a referenced issue price of ₹273. GMP is an unofficial indicator and can change.

Financial performance, margins, and disclosed valuation metrics

Across the reported financial years in the disclosures, Raksan shows an increase in scale, with total revenue and profit after tax (PAT) rising from FY2024 through FY2026. Total assets also rose over the same period. The reported PAT margin increased across these financial years.

For operating profitability and returns, the disclosed KPI set reports an EBITDA margin of 12.87% and a PAT margin of 9.25%. Return ratios disclosed include ROE (return on equity) of 55.32%, ROCE (return on capital employed) of 46.72%, and RoNW (return on net worth) of 43.41%.

On leverage, the disclosed debt-to-equity ratio is 0.27.

For valuation context as presented in the IPO materials, the issue discloses an EPS (earnings per share) of ₹20.39, a pre-IPO P/E (price-to-earnings) of 13.39 times, and a price-to-book multiple of 18.98 times.

Fresh issue vs OFS, proposed fund use, key risks, and monitoring points

The IPO combined a fresh issue of ₹120.47 crore and an OFS of ₹30.03 crore. This distinction is important because fresh issue proceeds go to the company, while OFS proceeds go to the selling shareholders.

The company states that the fresh issue is proposed to be used for: (1) funding capital expenditure towards setting up a manufacturing facility at Liwaspur, Sub-Tehsil Rai, District Sonipat, Haryana; (2) meeting working capital requirements; (3) repayment of certain borrowings (in part or full); and (4) general corporate purposes. Within the identified proposed allocations disclosed, the largest component is earmarked for the Liwaspur facility’s capital expenditure (including civil works and machinery as described), followed by working capital, and then repayment of certain borrowings; general corporate purposes are also stated as an object of the issue.

Key risks highlighted by the company’s disclosures relate to the tender-led and utility-linked nature of the business and the conversion of orders into cash.

One disclosed risk is revenue concentration with government and public utilities, with the company noting that over 50.73% of revenue comes from such customers; this can affect cash flows and working capital due to payment timelines. A second disclosed risk is dependence on winning competitive tenders, where losing bids or tender pricing can affect earnings predictability and margins. A third disclosed risk is that the order book may not convert into sales due to delays, cancellations, or inspection-linked billing, which can affect near-term revenue and liquidity.

Monitoring points to track, based on the stated business profile and IPO objectives:

Progress and execution at the Liwaspur facility relative to the proposed capital expenditure plan.

Working-capital movement, including collections and receivables linked to government and public-utility customers.

Order book conversion into billed revenue, especially where billing is inspection-linked.

Tender participation outcomes and customer mix between government utilities and private/EPC customers.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.