Raksan Transformers Ltd IPO

Established Manufacturing facility and In-house operations.

Strong Order Book.

Established relationship with the clients including government entities, power utilities.

Quality assurance.

Experienced and Strong Promotors/Management team.

Track record of profitability and consistent financial performance.

The company derives a substantial portion of its revenue from government and public utility customers, the supply of transformers topublic utility companies including government entities constituted 50.73%, 72.99% and 56.13% of the companys revenue from operationsduring the in Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, and its business is highly dependent on governmentpolicies, project allocations, and payment cycles.

A significant portion of the companys revenue is derived from government-controlled entities, through competitive bidding processes. Itsbusiness, results of operations, and cash flows may be adversely affected if the company is unable to qualify for or win tenders, facespricing pressures, experience delays in award or execution of contracts, or are restricted from participating in future bids.

The company order book may not be representative of its future results and the companys actual income may be significantly less than the estimatesreflected in its order book, which could adversely affect the companys business, financial condition, results of operations and prospects.

The company significantly depends upon few of the raw material suppliers for its manufacturing activities. Volatility in the supply andpricing of the companys raw materials may have an adverse effect on its business, financial condition and results of operations.

Any under-utilization or inability to efficiently utilize the companys existing manufacturing capacities could adversely affect itsoperational efficiency, financial performance, and future business prospects.

The company derives a significant portion of its revenue from the sale of distribution transformers, and any reduction in demand orpurchases for these transformers may adversely affect the companys business, results of operations, and financial condition.

The company is significantly dependent on its relationships with key customers. The loss of one or more of these key customers, or areduction in the volume of business from any of them, could have a material adverse effect on the companys revenue, profitability, andoverall financial performance.

Any delays in manufacturing, supply chain, or third-party execution may result in liquidated damages or order cancellations.

The company is subject to strict quality requirements, regular inspections and audits. An inability to maintain the quality of its productscould lead to the cancellation of existing and future orders, recall claims or warranty claims and penalties.

The companys business inherently requires significant working capital, and any shortfall in meeting these requirements may adverselyimpact its operations, profitability, and future growth.