Accord Transformer & Switchgear Limited is set to launch its Initial Public Offering (IPO) on February 23, 2026, aiming to raise ₹25.59 crore through a Book Built Issue. The IPO will close on February 25, 2026, and the shares are scheduled to be listed on the NSE on or about March 2, 2026.

The company operates in the electrical equipment manufacturing space and is engaged in the production and supply of transformers, switchgear panels, compact substations, and related power distribution equipment. With strong demand for power infrastructure in India, the IPO has attracted attention, particularly due to the reported Grey Market Premium (GMP) of ₹153.

This article provides a comprehensive analysis of the IPO structure, business operations, financials, valuation, risks, opportunities, and factors investors should evaluate before subscribing.

IPO Structure and Key Details

The Accord Transformer & Switchgear IPO is entirely a fresh issue of 0.56 crore equity shares, aggregating to ₹25.59 crore. There is no Offer for Sale component in this issue, which means the entire proceeds will go directly to the company.

Key IPO Information

• IPO Opening Date: February 23, 2026

• IPO Closing Date: February 25, 2026

• Allotment Date: February 26, 2026

• Listing Date: March 2, 2026

• Issue Size: ₹25.59 crore

• Price Band: ₹43 to ₹46 per equity share

• Face Value: ₹10 per share

• Market Capitalisation at ₹46: ₹94.64 crore

• Lot Size: 3000 shares

Investment Requirements

• Retail Minimum Investment: 2 lots (6000 shares)

  • Investment Amount: ₹2,76,000

• HNI Minimum Investment: 3 lots (9000 shares)

  • Investment Amount: ₹4,14,000

The relatively large lot size makes the IPO suitable primarily for investors with higher capital allocation capacity.

About Accord Transformer & Switchgear Limited

Accord Transformer & Switchgear Limited is involved in the manufacturing and supply of electrical power distribution equipment. Its product portfolio includes:

• Power transformers

• Distribution transformers

• Switchgear panels

• Compact substations

• Related transmission equipment

The company provides engineering, manufacturing, and supply services tailored to power transmission and distribution projects.

Its products are widely used in:

• Industrial plants

• Infrastructure development projects

• Electricity utilities

• Commercial establishments

• Power distribution networks

The company caters to both public and private sector clients and plays a role in strengthening India’s electrical infrastructure.

Financial Performance

For FY25, the company reported Revenue from Operations of ₹7,90,225.33 thousand, indicating steady operational activity in the electrical equipment segment.

Investors should evaluate:

• Revenue growth trend

• Profit margins

• Order book strength

• Debt levels

• Working capital requirements

Electrical equipment manufacturing typically involves raw material cost sensitivity, especially copper and steel prices, which can influence margins.

Use of IPO Proceeds

Since the IPO is entirely a fresh issue, the net proceeds will be utilised for:

• Working capital requirements

• Capacity expansion

• Capital expenditure

• General corporate purposes

Strengthening working capital is critical in manufacturing businesses where inventory and receivables cycles can be extended.

Industry Outlook

India’s power sector continues to expand due to:

• Growing electricity demand

• Industrial expansion

• Urbanisation

• Government electrification initiatives

• Renewable energy integration

The demand for transformers and switchgear equipment is directly linked to power generation and distribution growth.

Government schemes for upgrading power infrastructure and reducing transmission losses also create opportunities for manufacturers like Accord Transformer & Switchgear.

However, the sector is competitive and sensitive to raw material price fluctuations.

Grey Market Premium Analysis

The Grey Market Premium (GMP) for the IPO is currently reported at ₹153.

At the upper price band of ₹46, a GMP of ₹153 suggests a strong unofficial premium in the grey market. However, investors must remember:

• Grey market trading is unofficial and unregulated

• GMP is based on demand and supply in informal markets

• It does not guarantee listing gains

• Market conditions can change before listing

GMP should be considered only as an indicator of sentiment, not as an investment decision tool.

Valuation Perspective

At the upper price band of ₹46, the company’s market capitalisation will be approximately ₹94.64 crore.

In SME IPOs, valuation analysis should include:

• Earnings multiples

• Peer comparison

• Growth outlook

• Profitability sustainability

• Order inflow visibility

Since it is likely to be listed on the SME platform of NSE, liquidity may be lower compared to mainboard listings.

Strengths of the Company

The company has several strengths that investors may consider:

• Presence in a critical infrastructure sector

• Manufacturing capabilities in power equipment

• Diversified product portfolio

• Exposure to industrial and infrastructure clients

• Growing electricity demand in India

Its role in supporting power transmission and distribution positions it within a structurally growing industry.

Risk Factors

While the sector offers growth potential, there are certain risks:

Dependence on Infrastructure Spending

Reduced capital expenditure by governments or private players could impact demand.

Raw Material Price Volatility

Fluctuations in copper, steel, and other inputs can affect margins.

Competitive Industry

Numerous players operate in the transformer and switchgear segment, leading to pricing pressure.

Working Capital Intensive Operations

Delayed receivables can affect cash flows.

Market Sentiment and Investor Considerations

The reported GMP of ₹153 suggests strong initial sentiment. However, investors should evaluate:

• Financial ratios

• Profit margins

• Debt levels

• Cash flow statements

• Industry positioning

Since the minimum retail investment is ₹2.76 lakh, the IPO is capital-intensive for small investors.

Investors should align subscription decisions with their risk appetite and portfolio diversification strategy.

Conclusion

The Accord Transformer & Switchgear IPO offers investors exposure to India’s growing power transmission and distribution sector. The issue size of ₹25.59 crore, entirely a fresh issue, indicates that funds will support business expansion and working capital needs.

With a price band of ₹43 to ₹46, and a market capitalisation of ₹94.64 crore at the upper band, the IPO is positioned in the SME segment.

The Grey Market Premium of ₹153 reflects strong unofficial demand, but investors must rely on fundamentals rather than market speculation.

The IPO opens on February 23, 2026, and closes on February 25, 2026, with listing expected on March 2, 2026.

As with any SME IPO, investors should carefully assess liquidity risks, valuation comfort, and long-term business sustainability before applying.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.