Raksan Transformers Limited depends on promoter-group operating ties

Raksan Transformers Limited depends on promoter-group entities across procurement, operating premises and bank-facility support. In FY2026, Raksan Transformers bought Rs 44.70 crore of goods from SHR Power Private Limited, while its promoters held 94.22% of pre-offer equity and Haryana Power Industries featured in disclosed property and guarantee arrangements.

How concentrated is Raksan Transformers' promoter control?

Raksan Transformers' three promoters held 94.22% of its pre-offer paid-up equity capital as of the red herring prospectus date. Sanjeev Kanda, Renu Kanda and Dievam Singh Kanda collectively owned 1,55,28,662 equity shares with a face value of Rs 10 each, giving the group voting control and an interest in dividends or other distributions if declared.

Raksan Transformers identifies KPV Buildcon Private Limited and SHR Power Private Limited as corporate promoter-group entities under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The promoter-group list also includes Haryana Power Industries and M/s Sanjeev Kanda as partnership or proprietorship firms, as well as Sanjeev Kanda Hindu Undivided Family, or HUF. An HUF is a family unit recognised under Indian law.

The shareholding concentration coincides with board positions. Sanjeev Kanda was chairman and managing director, Dievam Singh Kanda was whole-time director, and Renu Kanda was a non-executive director. In FY2026, Raksan Transformers disclosed Rs 1.50 crore of director remuneration for Sanjeev Kanda and Rs 48 lakh of salary expense for Dievam Singh Kanda, separately from transactions with promoter-group entities.

How significant are Raksan Transformers' purchases from SHR Power?

Raksan Transformers bought Rs 44.70 crore from SHR Power in FY2026, compared with Rs 36.28 crore in FY2025 and Rs 20.20 crore in FY2024. The related-party schedule also records FY2026 sales of Rs 2.27 crore to SHR Power, job-work expenses of Rs 19.35 lakh, and payments made of Rs 48.43 crore. Job work refers to production or processing performed for another party.

The FY2026 purchases from SHR Power were equivalent to about 16.7% of Raksan Transformers' Rs 267.77 crore cost of materials consumed. This is a comparison of disclosed figures, not a company-stated sourcing ratio: the prospectus does not specify whether every purchase from SHR Power was recorded within cost of materials consumed. Continued access to the entity and the terms of purchases and payments therefore affect a material disclosed procurement relationship.

Raksan Transformers' reported balance with SHR Power also changed across the three years. It disclosed advances given of Rs 1.42 crore at March 31, 2026, against advances receivable of Rs 4.35 crore at March 31, 2025 and Rs 2.94 crore at March 31, 2024. The labels differ between periods, so the figures show changing reported balances rather than a directly comparable single balance category.

Which promoter-group assets does Raksan Transformers use?

Raksan Transformers disclosed two rented Sonipat industrial properties involving Haryana Power Industries. Plot Nos. 1676-1677 at HSIIDC Industrial Estate, Sector 38, Kundli, are identified as the factory and corporate office under a 15-year lease that commenced on January 1, 2016. The agreement sets monthly rent at Rs 15,000 and covers 2,025 square metres.

The second arrangement concerns Plot No. 1675 at HSIIDC Rai Industrial Area, Sonipat, where Haryana Power Industries is named as owner. The tenancy began on March 1, 2026 for 11 months, covers 1,551.48 square metres and requires monthly rent of Rs 3.90 lakh. The two disclosed sites total 3,576.48 square metres, although the prospectus does not assign a separate operational use to Plot No. 1675 in the property table.

Haryana Power Industries appears in more than one capacity in the disclosures. Raksan Transformers identifies Haryana Power Industries as a promoter-group firm and separately consolidates a Haryana Power Industries partnership firm as a subsidiary entity. The related-party note reports Rs 1.89 lakh of rent paid to the subsidiary in FY2025 and Rs 1.80 lakh in FY2024, with those intragroup transactions eliminated in consolidation; it reports no such FY2026 rent payment.

How do promoter-group entities support Raksan Transformers' borrowings?

Raksan Transformers' working-capital term loans were guaranteed by directors and by the corporate guarantee of Haryana Power Industries, a partnership firm described as being under the same management. A guarantee is a commitment by another party to meet a borrower's obligation if the borrower does not. The long-term borrowing note gives this support arrangement without quantifying the amount specifically covered by each guarantor.

The company reported a cash-credit borrowing of Rs 11.28 crore at March 31, 2026, down from Rs 12.05 crore a year earlier. Cash credit is a revolving bank working-capital facility. The facility was secured by charges over current assets and plant and machinery, subject to stated exceptions, and the prospectus says it was guaranteed by directors and Haryana Power Industries; it also names SHR Powers Private Limited as a corporate guarantor for the year ended March 31, 2023.

The Rs 7.59 crore micro, small and medium enterprises loan against property, or MSME LAP loan, was scheduled for 120 monthly instalments from July 2024 to June 2034. It was secured by equitable mortgages over industrial properties at Plot Nos. 1676-77, Rai, Sonipat, standing in the name of Haryana Power Industries and covering 1,012.50 square metres and 2,025 square metres. These collateral and guarantee arrangements link financing support to assets and commitments outside Raksan Transformers' direct ownership.

What changed in Raksan Transformers' other promoter-group transactions?

Raksan Transformers' purchases from SHR Power rose by Rs 24.50 crore between FY2024 and FY2026, while sales to the same entity rose by Rs 74 lakh. Over the same two years, revenue from operations increased from Rs 160.95 crore to Rs 363.11 crore and profit for the year increased from Rs 7.59 crore to Rs 33.60 crore. The company does not attribute either financial change to related-party transactions.

Manpower services from Haryana Power Industries, described in the related-party note as a proprietorship of Sanjeev Kanda HUF, fell to nil in FY2026 from Rs 3.77 crore in FY2025 and Rs 2.13 crore in FY2024. Payments to that entity were Rs 67.05 lakh in FY2026, compared with Rs 3.18 crore in FY2025, while the amount payable declined from Rs 81.41 lakh to Rs 14.36 lakh at March 31, 2026.

Conclusion

Raksan Transformers' disclosed promoter-family influence extends beyond 94.22% equity ownership. SHR Power accounted for Rs 44.70 crore of FY2026 purchases, Haryana Power Industries was involved in premises used by the company, and promoter-linked parties provided guarantees or collateral connected with borrowing facilities. The disclosures make procurement, occupancy and financing relevant areas of related-party dependence.

The next disclosed contractual developments are the 11-month Plot No. 1675 tenancy beginning March 1, 2026 and the MSME LAP loan repayment schedule through June 2034. Later disclosures will show whether SHR Power purchase volumes, Haryana Power Industries property arrangements, outstanding advances and guarantee support change after the proposed public issue.