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Informist, Wednesday, Jul. 1, 2026

MUMBAI – TMC Transformers (India) Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering for a total issue of shares of up to INR 5.5 billion. The entire offer is for a fresh issue of shares. There is no offer-for-sale component.

The public offer will be made through the book-building process. Anand Rathi Advisors Ltd. and Intensive Fiscal Services Ltd. are the book-running lead managers of the offer and MUFG Intime India Pvt. Ltd. is the registrar. Shares of the company are proposed to be listed on both the National Stock Exchange and BSE.

TMC Transformers operates in the power infrastructure sector and has manufacturing capabilities in multiple types of power and distribution transformers, as per the draft offer document. Its product portfolio includes oil-filled, dry type, and Scott connected traction transformers and compact power substations. It sells these products to utilities and power distribution companies, for industrial applications, and to Indian Railways and metro rail projects.

The company will use INR 2.32 billion of the proceeds of the initial public offering towards capital expenditure to set up a greenfield high voltage transformer manufacturing factory at Halol in Gujarat with a total installed capacity of 78,000 mega volt ampere, as per the draft prospectus. The proceeds will also be used to partly fund incremental working capital expenses of INR 1.66 billion and an unspecified amount not exceeding 25% of the proceeds will be used for general corporate purposes.

Retail individual investors will be allocated not more than 10% of the shares on offer. Not more than 15% of the offer will be available for allocation to non-institutional investors, while not less than 75% will be available for allocation qualified institutional buyers. These allocations, according to the company, are as per SEBI's regulations that require issuers who do not meet certain thresholds for operating profit, net tangible assets, net worth, and other financial parameters to allot at least 75% of the net offer to qualified institutional buyers.

In its draft offer document, TMC Transformers highlighted substantial revenue exposure to the railways sector as a key risk factor for the company. "Any delay in tendering, award and execution of railways projects or any reduction in demand, budgetary allocation, or capital expenditure by the railways sector could adversely affect our business, results of operations, financial condition, and cash flows," it said.

The revenue exposure of TMC Transformers to its top three customers of 45% of total revenue for the financial year 2025-26 (Apr-Mar), 32% in FY25, and 29% in FY24 has been highlighted as another key risk factor in the draft offer document. The company said it derives a substantial portion of its revenue from operations from its top 10 customers.

For FY26, the company had reported a consolidated net profit of INR 957 million on revenue from operations of INR 4.17 billion. The company's consolidated net profit for FY25 was INR 466 million on revenue from operations of INR 2.72 billion.

There is one corporate affairs ministry proceeding on cost audit and three tax litigations of total INR 1.2 million against the company.  (Rajesh Gajra)  End

Edited by Rajeev Pai

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