Raksan Transformers IPO Day 2: Subscribed 1.07x; QIB surges 154% intraday
- Raksan Transformers IPO subscribed 1.07x on Day 2
- QIB category surged 154% intraday to reach 2.98x
- Total subscription jumped from 0.52x to 1.07x in two hours
- Issue remains open until September 15, 2026
- Price band set between ₹258.00000 and ₹273.00000
*this image is generated using AI for illustrative purposes only.
Raksan Transformers IPO is subscribed 1.07 times on Day 2, crossing the fully subscribed threshold. Qualified Institutional Buyers (QIB) led the charge with a massive 154% intra-day surge, reaching 2.98x subscription by 1:15 PM IST.
Subscription Status
The IPO witnessed a dramatic shift in demand during Day 2 (September 11, 2026). While the issue closed at 0.36 times on Day 1, it more than tripled its total subscription count within hours of opening on Day 2. The total subscription stood at 1.07 times as of the latest update, marking a significant acceleration in investor interest.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 10-09-2026 | 1.00x | 0.07x | 0.05x | 0.13x | 0.36x |
| Day 2 | 11-09-2026 | 2.98x | 0.17x | 0.60x | 0.23x | 1.07x |
Category-wise Breakdown
QIBs are the undisputed leaders in this issue. As of the latest data, QIBs have subscribed 2.98 times their quota, far exceeding the required allocation. Non-Institutional Buyers (bHNI) follow with a subscription of 0.60 times. Retail investors have subscribed 0.23 times, while NII (sHNI) stands at 0.17 times. Employee subscription remains at 0 times.
Intra-day Timeline
The intra-day data for Day 2 highlights the rapid pace of institutional accumulation. QIB demand remained steady at 1.17x until noon but then spiked sharply to 2.98x by 1:15 PM IST. NII (bHNI) and Retail also saw incremental gains throughout the morning session.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 1.17x | 0.11x | 0.18x | 0.52x |
| 12:15 | 1.17x | 0.13x | 0.21x | 0.54x |
| 13:15 | 2.98x | 0.17x | 0.23x | 1.07x |
Offer Details
Raksan Transformers has priced its IPO in the band of ₹258.00000 to ₹273.00000. The minimum bid quantity is set at 800 shares. The issue size ranges from ₹206400 lakhs to ₹500000 lakhs depending on the final price and full utilization of the green shoe option. The IPO opened on September 10, 2026, and closes on September 15, 2026.
About the Company
Raksan Transformers is an ISO 9001:2015 certified transformer manufacturer established in 1995. Initially engaged in repair and servicing, the company began manufacturing operations in 2005-06. It operates two facilities in Sonepat, Haryana, with a combined capacity of 15,00,000 KVA for distribution transformers and 1350 MVA for power transformers. The company serves government entities, utility companies, EPC contractors, and industrial clients.
Financial Highlights
The company reported revenue from operations of ₹363.11 crores for the fiscal year ended March 31, 2026. Profit after tax stood at ₹33.60 crores for the same period. In FY 2025, revenue was ₹324.21 crores with a PAT of ₹20.38 crores.
| Particulars | FY 2026 (₹ crores) | FY 2025 (₹ crores) | FY 2024 (₹ crores) |
|---|---|---|---|
| Revenue from Operations | 363.11 | 324.21 | 160.95 |
| Profit After Tax | 33.60 | 20.38 | 7.59 |
| Total Assets | 155.59 | 117.90 | 67.02 |
Objects of the Issue
The proceeds from the IPO will be utilized for:
- Funding capital expenditure towards setting up of manufacturing facility at Liwaspur, Sub-Tehsil Rai, Distt. Sonepat, Haryana: ₹62.14 crores
- Meeting working capital requirements: ₹35.00 crores
- Repayment of certain borrowing availed by the Company: ₹7.28 crores
- General Corporate Purpose: Remaining fresh issue proceeds
Risk Factors
- Heavy Dependence on Government and Public Utility Customers: The company derives 50.73% to 72.99% of its revenue from government and public utility customers.
- Competitive Bidding Process Risks: Revenue is closely linked to winning competitive tenders, with no assurance of consistent qualification.
- Order Book Execution and Revenue Recognition Risks: The order book of ₹32,967.92 lakhs as of June 30, 2026 may not be representative of future results due to execution risks.
- Raw Material Supply Chain and Cost Volatility: Top 10 suppliers account for 54.96% of procurement in Fiscal 2026.
- Customer Concentration Risk: The company derived 71.49% to 83.52% of total revenue from its top 10 customers in Fiscals 2026, 2025, and 2024.
Will the heavy reliance on QIB subscription (2.98x) versus weak retail interest (0.23x) impact the stock's listing price and initial volatility?
How might the upcoming capital expenditure of ₹62.14 crores for the new Liwaspur facility affect Raksan Transformers' debt-to-equity ratio and future cash flows?
Given that over 70% of revenue comes from government and public utility customers, how exposed is the company to potential delays in infrastructure project approvals or budget cuts?
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