TMC Transformers Files DRHP With Sebi For ₹550 Crore IPO

TMC Transformers (India) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) towards a public listing. The company is planning to raise up to ₹550 crore through an initial public offering (IPO), the proceeds of which will be largely used to expand its manufacturing capabilities.

The proposed IPO shall be a fresh issue of equity shares in its entirety, which means that the proceeds from the IPO shall go to the company and not to the existing shareholders. TMC Transformers may also do a pre-IPO placement of up to ₹110 crore, which may trim the size of the fresh issue before filing the final prospectus.

Where Will The IPO Proceeds Go?

A significant chunk of the funds will be utilised for establishing a greenfield Extra High Voltage (EHV) transformer manufacturing facility at Halol, Gujarat. The proposed plant, with an installed capacity of 78,000 MVA, will help the company meet increasing demand from the power transmission sector in India.

The proceeds from the IPO will be used for expanding manufacturing capacity, incremental working capital requirements and general corporate purposes.

What Is TMC Transformers?

TMC Transformers manufactures a wide range of power and traction transformers for Railways, Renewable Energy, Metro Rail, Industrial Projects and Power Distribution Utilities. The company manufactures oil-filled transformers, dry-type transformers and compact substations specifically to the customer’s needs, operating on an integrated, design-led manufacturing model.

According to the CRISIL report mentioned in the DRHP, TMC Transformers has a niche position in the railway electrification segment. It is the sole Indian transformer manufacturer approved by the Research Designs and Standards Organisation (RDSO) for all transformer classes required for 2×25 kV traction substations used by Indian Railways. It is also one of a handful of manufacturers that are approved to build high-capacity Scott-connected traction transformers for railway electrification projects.

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What Investors Should Watch?

India’s growing investments in power infrastructure, renewable energy and railway electrification have also spurred demand for transformer manufacturers. This trend has been favourable for TMC Transformers, with its revenue from operations growing at a 29.83% CAGR between FY24 and FY26 as per the CRISIL report cited in the DRHP. The company also posted one of the highest gross profit margins of 43.01% in FY26 and 38.57% in FY25, indicating operational efficiency and backward integration.

As the IPO process moves ahead, investors will also be keen to see the company’s order pipeline, execution capabilities and the speed at which it can ramp up production once the new Gujarat facility is operational. The price of the issue and the market conditions in general may also influence investor interest.