Raksan Transformers IPO 2026: Price Band, Dates, Lot Size & Key Details

Reviewed by BuyUnlistedShares Research Desk.

Summary

Raksan Transformers Limited, a Haryana-based manufacturer of distribution and power transformers, is launching its initial public offering (IPO) on the BSE SME platform in September 2026. The issue combines a fresh issue of shares with a partial offer for sale by one of the promoters.

Key points at a glance:

• Retail quota: Not less than 35% of the net offer

• QIB quota: Not more than 50% of the net offer

• NII (HNI) quota: Not less than 15% of the net offer

• Platform: This is an SME IPO listing on BSE SME, which typically carries lower trading liquidity than a mainboard listing

• Payment modes: ASBA (through net banking) or UPI, or offline through a stockbroker

The Business

Raksan Transformers was incorporated in 1995 and initially focused on the repair and servicing of distribution and power transformers, before moving into manufacturing during 2005-06. The company is promoted by Sanjeev Kanda, Dievam Singh Kanda and Renu Kanda.

• Core products: Single and three-phase CRGO oil-filled distribution transformers, power transformers, solar-application transformers and special-purpose transformers designed to customer specifications.

• Manufacturing base: Two facilities located at Rai, Sonepat, Haryana, with an installed capacity of about 15,00,000 KVA for distribution transformers and 1,350 MVA for power transformers.

• In-house operations: Core cutting and slitting, wire and strip drawing, coil winding, tank fabrication, assembly, oil filtration and welding, supported by an in-house testing laboratory for routine and type tests.

• Certifications: Products comply with Bureau of Indian Standards (BIS) requirements and carry ISI and BEE STAR certifications.

• Customer base: Approved vendor for more than 20 entities, including government bodies, power utilities, public sector undertakings, EPC contractors and industrial customers.

• Workforce: 143 employees as of June 30, 2026, of which 113 were engaged directly in production.

• Expansion: IPO proceeds are earmarked in part for a new manufacturing facility at Liwaspur, Sub-Tehsil Rai, District Sonepat, Haryana.

Financials

Raksan Transformers has reported strong revenue and profit growth over FY24-FY26, along with an improving balance sheet.

• Return ratios (FY26): Return on capital employed (ROCE) of about 46.72% and return on net worth (RoNW) of about 43.41%

• Leverage: Debt-to-equity has improved from about 0.53 to about 0.27 over the period, alongside a decline in absolute borrowings in FY26

• Trend: Total income growth moderated in FY26 after a sharp jump in FY25, while PAT continued to grow at a faster pace than revenue, aided by margin improvement

Figures are drawn from the company's restated financial statements ahead of the IPO and are subject to the final Red Herring Prospectus (RHP).

Valuation Context

At the upper end of the ₹258-₹273 price band, Raksan Transformers is valued at a pre-issue price-to-earnings (P/E) multiple of about 13.39 times and a post-issue P/E of about 16.98 times, based on disclosed FY26 earnings.

• Post-issue EPS: About ₹16.08 per share

• Implied market capitalisation: About ₹570.39 crore at the upper price band

• Price-to-book: Reported as elevated relative to some peers, which is common for asset-light, high-return manufacturing businesses

• Shareholding post-issue: Promoter holding is expected to decline from 100% to about 73.61%, with public shareholders holding the remaining 26.39%

Valuation multiples are calculated using disclosed financials and current price band figures. They are provided for informational comparison only and are not a judgment on whether the issue is fairly priced.

Corporate Actions

• Issue structure: The ₹150.50 crore IPO comprises a fresh issue of about ₹120.47 crore and an offer for sale of about ₹30.03 crore by promoter Sanjeev Kanda.

• Proceeds from OFS: The offer-for-sale portion is a secondary sale by the promoter; the company itself does not receive these proceeds.

• Shareholding pattern: Pre-issue equity shares stood at 1,64,80,600, expected to rise to about 2,08,93,400 post-issue.

• Use of fresh issue proceeds: Primarily allocated toward a new manufacturing facility, working capital and partial debt repayment (details in the next section).

• Face value: ₹10 per equity share.

What We Are Watching

• Category-wise subscription: How the QIB, NII and retail portions fill up over September 10-15, 2026, particularly in the final hours of bidding, which tends to matter more for SME issues.

• Grey market trend: Unoffic

ial grey market premium (GMP) figures have been reported in a modest, single-digit-to-low-double-digit range in the days before the issue opened. GMP is informal, unregulated, and can change quickly - it is a sentiment indicator, not a price forecast.

• Allotment and listing: Basis of allotment on September 16 and listing on BSE SME tentatively set for September 18, 2026.

• Execution of expansion plans: Progress on the new Liwaspur, Sonepat manufacturing facility, since a large share of fresh-issue proceeds is earmarked for this capacity build-out.

• Post-listing liquidity: As with most SME-platform listings, trading volumes and price behaviour after listing can differ meaningfully from mainboard stocks.

Objects of the Issue

The company has stated that the net proceeds from the fresh issue will be used broadly as follows:

Risks

The company's offer documents outline several risk factors that prospective applicants should read in full in the RHP. Key risks include:

• Order and payment cycle risk: A significant share of business comes from government entities, power utilities and PSUs, where tender delays, execution timelines and payment cycles can affect cash flows.

• Raw material price volatility: Prices of copper, aluminium, CRGO steel and transformer oil can fluctuate and affect margins, especially on fixed-price orders.

• Offer-for-sale dilution of proceeds: The ₹30.03 crore offer-for-sale component does not bring any funds into the company; only the fresh issue portion does.

• Execution risk on expansion: The new manufacturing facility could face construction, commissioning or utilisation delays that affect the intended benefits of the capacity expansion.

• SME platform liquidity: Shares listed on the SME segment typically trade in lower volumes than mainboard-listed stocks, which can mean higher price volatility and wider bid-ask spreads after listing.

Frequently Asked Questions

1. What is the price band of the Raksan Transformers IPO?

The price band has been fixed at ₹258 to ₹273 per equity share, with a face value of ₹10 per share.

2. What is the lot size for the Raksan Transformers IPO?

The minimum lot size is 400 shares. Individual retail investors typically need to apply for at least 2 lots (800 shares).

3. When does the Raksan Transformers IPO open and close?

The IPO opens for subscription on September 10, 2026, and closes on September 15, 2026.

4. What is the minimum investment amount required?

At the upper price band of ₹273, the minimum application of 800 shares (2 lots) requires about ₹2,18,400.

5. When will the allotment and listing take place?

The basis of allotment is expected to be finalised on September 16, 2026, with listing on BSE SME tentatively scheduled for September 18, 2026.

6. Is the Raksan Transformers IPO a fresh issue or does it include an offer for sale?

It includes both: a fresh issue of about ₹120.47 crore and an offer for sale of about ₹30.03 crore by promoter Sanjeev Kanda.

7. Who is the registrar for the Raksan Transformers IPO?

Bigshare Services Private Limited is the registrar. Hem Securities Limited is the book running lead manager, and Hem Finlease Private Limited is the market maker.

8. What will the fresh issue proceeds be used for?

Primarily for setting up a new manufacturing facility at Liwaspur, Sonepat, meeting working capital requirements, repaying certain borrowings, and general corporate purposes.

9. What business does Raksan Transformers operate?

It is a Haryana-based manufacturer of distribution, power, solar-application and special-purpose transformers, serving government entities, power utilities, EPC contractors and industrial customers.

10. On which exchange will Raksan Transformers list?

The company is listing on the BSE SME platform, not the mainboard segment of the exchange.

Disclaimer:

This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.