RAKSAN TRANSFORMERS LTD
About the company
Raksan Transformers Ltd (RTL), incorporated in 1995, is primarily engaged in the repair and servicing of distribution and power transformers. The company’s focus is on delivering quality and reliability in product range, supported by standardized manufacturing practices and compliance with applicable industry norms.
Raksan Transformers product offering includes distribution transformers, power transformers, transformers for solar applications, and special purpose transformers. These transformers are utilized across multiple sectors to facilitate the transmission and distribution of electrical energy
RTL operates two manufacturing units situated at HSIIDC Industrial Estate, District Sonepat, Haryana. Its group company, SHR Powers Pvt Ltd, manufactures transformer tanks/bodies, which are key components utilized in the production of transformers.
Raksan Transformers Limited demonstrated consistent financial growth from FY24 to FY26, with total revenue more than doubling from ₹160.95 Crs to ₹363.11 Crs. Profitability scaled alongside operational efficiency, pushing EBITDA margins from 6.79% to 12.97% and increasing EBITDA significantly to ₹47.10 Crs in FY26. This upward trajectory drove Profit After Tax (PAT) from ₹7.59 Crs to ₹33.60 Crs, boosting EPS from ₹4.61 to ₹20.39 and expanding Shareholders' Funds to ₹77.42 Crs.
The promoters of Raksan Transformers are Sanjeev Kanda, Renu Kanda, and Dievam Singh Kanda. Sanjeev Kanda is the Managing Director and also a key figure in the company's management. Renu Kanda serves as a director, and Dievam Singh Kanda is a Whole Time Director.
Raksan Transformers Ltd (RTL) is making fresh issue cum offer for sale of up to 55,12,800 (Fresh issue 41,36,800 Shares and Offer For sale 11,00,000 shares) shares having face value of Rs 10 each aggregating Rs 150 Crs. The net offer to the public is 52,36,800 shares within the price band of Rs 258-273 per share. 18,33,600 shares offered to retail, while 78,60,000 shares offered to the Non-Institutional HNI category, 26,17,200 shares to QIBs, 15,70,000 shares to Anchor investors, & 2,76,000 shares will be reserved for Market Maker to the issue
The shares will be listed on BSE SME platform of the Bombay Stock Exchange (BSE).
Key metrics
Subscription status by category
Strengths & risks
Strengths / Operational Highlights
Raksan Transformers Ltd Key Competitive Strengths
Leveraging decades of promoter expertise for sustained industry leadership and strong client trust – Raksan Transformers significantly benefits from the decades-long expertise of its promoters and management team in the transformers manufacturing industry. This core competency has been vital in establishing a successful operational track record, building strong client and supplier relationships, and securing a robust order book, thereby driving business growth and stability. Their deep industry insights enable the team to navigate complex technical requirements and streamline operations efficiently. Furthermore, this long-standing reputation fosters continuous repeat business and enhances market credibility among institutional players.
Tender-based manufacturing and servicing for the power sector – Raksan Transformers operates by manufacturing and servicing power and distribution transformers and allied products. They primarily cater to Government and public sector companies in the electrical and power industry, securing business mainly through tender bidding. Their sharp emphasis on compliance and strict quality standards gives them a strong competitive edge in winning these stringent government bids. Additionally, combining both product manufacturing with ongoing servicing allows them to create sustained revenue channels throughout product lifecycles.
Strategic Focus: Expanding capacity and leveraging public sector ties for future growth – Raksan Transformers' strategy focuses on expansion by funding a new manufacturing facility and enhancing working capital. It aims to leverage its strong ties with government and public sector clients while maintaining product quality to capitalize on the growing domestic power and renewable energy sectors. By positioning itself in the renewable energy supply chain, the company is set to tap into nationwide infrastructure upgrades. This combined approach ensures long-term scalable expansion while keeping customer relationships stable and reliable.
Post the Public Issue Raksan Transformers plans to fund new manufacturing capacity and boost working capital – Raksan Transformers aims for post-IPO growth by utilizing fresh issue proceeds primarily for capital Raksan Transformers aims for post-IPO growth by utilizing fresh issue proceeds primarily for capital expenditure to establish a new manufacturing facility. Additional objectives include meeting enhanced working capital needs and repaying specific borrowings to strengthen the balance sheet for future expansion. Setting up higher manufacturing capacity directly addresses increased market demand and larger order volumes. Moreover, lowering debt loads improves financial flexibility, placing the company on a healthier trajectory for long-term profitability.
Risks
The company faces high geographic concentration with nearly all revenue tied to Mumbai's real estate market, exposing it to localized economic downturns and regulatory changes in the MCGM region. Its financial stability is further challenged by negative operating cash flows of ₹41.19 Crs in FY26 and high upfront capital demands for society redevelopment. Additionally, complex project approval workflows, potential tenant consent disputes, and ongoing legal proceedings involving its principal promoter present significant operational and reputational risks.
Financial snapshot
Strengths & risks
Strengths / Operational Highlights
Raksan Transformers Ltd Key Competitive Strengths
Leveraging decades of promoter expertise for sustained industry leadership and strong client trust – Raksan Transformers significantly benefits from the decades-long expertise of its promoters and management team in the transformers manufacturing industry. This core competency has been vital in establishing a successful operational track record, building strong client and supplier relationships, and securing a robust order book, thereby driving business growth and stability. Their deep industry insights enable the team to navigate complex technical requirements and streamline operations efficiently. Furthermore, this long-standing reputation fosters continuous repeat business and enhances market credibility among institutional players.
Tender-based manufacturing and servicing for the power sector – Raksan Transformers operates by manufacturing and servicing power and distribution transformers and allied products. They primarily cater to Government and public sector companies in the electrical and power industry, securing business mainly through tender bidding. Their sharp emphasis on compliance and strict quality standards gives them a strong competitive edge in winning these stringent government bids. Additionally, combining both product manufacturing with ongoing servicing allows them to create sustained revenue channels throughout product lifecycles.
Strategic Focus: Expanding capacity and leveraging public sector ties for future growth – Raksan Transformers' strategy focuses on expansion by funding a new manufacturing facility and enhancing working capital. It aims to leverage its strong ties with government and public sector clients while maintaining product quality to capitalize on the growing domestic power and renewable energy sectors. By positioning itself in the renewable energy supply chain, the company is set to tap into nationwide infrastructure upgrades. This combined approach ensures long-term scalable expansion while keeping customer relationships stable and reliable.
Post the Public Issue Raksan Transformers plans to fund new manufacturing capacity and boost working capital – Raksan Transformers aims for post-IPO growth by utilizing fresh issue proceeds primarily for capital Raksan Transformers aims for post-IPO growth by utilizing fresh issue proceeds primarily for capital expenditure to establish a new manufacturing facility. Additional objectives include meeting enhanced working capital needs and repaying specific borrowings to strengthen the balance sheet for future expansion. Setting up higher manufacturing capacity directly addresses increased market demand and larger order volumes. Moreover, lowering debt loads improves financial flexibility, placing the company on a healthier trajectory for long-term profitability.
Risks
The company faces high geographic concentration with nearly all revenue tied to Mumbai's real estate market, exposing it to localized economic downturns and regulatory changes in the MCGM region. Its financial stability is further challenged by negative operating cash flows of ₹41.19 Crs in FY26 and high upfront capital demands for society redevelopment. Additionally, complex project approval workflows, potential tenant consent disputes, and ongoing legal proceedings involving its principal promoter present significant operational and reputational risks.
Our verdict
Our View on This IPO
Rakshan Transformers Ltd has entered the primary market seeking funds to expand its operations. The company has gained momentum for revenue generation in the recent past under the leadership of management team that has strong knowledge of fintech industry and adequate experience to sustain growth.
Raksan Transformers operates by manufacturing and servicing power and distribution transformers and allied products. They primarily cater to Government and public sector companies in the electrical and power industry, securing business mainly through tender bidding. Their sharp emphasis on compliance and strict quality standards gives them a strong competitive edge in winning these stringent government bids. Additionally, combining both product manufacturing with ongoing servicing allows them to create sustained revenue channels throughout product lifecycles.
Raksan Transformers' strategy focuses on expansion by funding a new manufacturing facility and enhancing working capital. It aims to leverage its strong ties with government and public sector clients while maintaining product quality to capitalize on the growing domestic power and renewable energy sectors. By positioning itself in the renewable energy supply chain, the company is set to tap into nationwide infrastructure upgrades. This combined approach ensures long-term scalable expansion while keeping customer relationships stable and reliable.
Raksan Transformers Ltdpromoters enjoy adequate experience in the international finance, strong expertise and strategic vision a unique combination to drive growth.
The proposed IPO will boost company’s net worth to Rs 190.35 crore, & the equity capital will stand at Rs 20.61 crore.
We are confident that Raksan Transformers Ltd will deliver consistent performance and provide an
excellent investment opportunity for investors with a long-term horizon.
Hence, we recommend SUBSCRIBE for long-term investment.
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