Accord Transformer & Switchgear Limited is set to enter the capital markets with its ₹25.59 crore Initial Public Offering IPO, attracting attention due to a sharp rise in its Grey Market Premium GMP. The company operates in the electrical equipment manufacturing sector and supplies transformers, switchgear panels, compact substations, and related power distribution products.

The IPO will open for subscription on February 23, 2026, and close on February 25, 2026. The allotment is expected to be finalised on February 26, 2026, with listing on the NSE scheduled for March 02, 2026.

IPO Structure and Issue Details

The Accord Transformer & Switchgear IPO is a Book Built Issue comprising 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, meaning all funds raised will go directly to the company.

At the upper price band of ₹46 per equity share, the company’s post-issue market capitalisation is estimated at approximately ₹94.64 crore.

The IPO price band has been fixed between ₹43 and ₹46 per share. Investors can bid within this range during the subscription period.

Lot Size and Investment Requirements

The IPO has a lot size of 3,000 shares, which is typical for SME offerings.

Retail investors must apply for a minimum of 2 lots, equivalent to 6,000 shares. At the upper price band of ₹46, the minimum investment for retail investors stands at ₹2,76,000.

High-Net-Worth Individuals HNIs are required to apply for at least 3 lots, or 9,000 shares, amounting to ₹4,14,000 at the upper band.

The relatively high minimum investment amount is due to the large lot size, which is common in SME IPOs listed on the NSE SME platform.

Business Overview

Accord Transformer & Switchgear Limited is engaged in manufacturing and supplying a range of electrical equipment used in power transmission and distribution systems. Its product portfolio includes:

• Transformers

• Switchgear panels

• Compact substations

• Other related electrical power distribution equipment

The company generates revenue from manufacturing, engineering, and supplying these products for power transmission and distribution projects.

Its products are used across:

• Industrial plants

• Infrastructure projects

• Power utilities

• Commercial establishments

The company plays a supporting role in India’s growing power infrastructure ecosystem.

Financial Performance

For FY25, Accord Transformer & Switchgear reported revenue from operations of ₹7,90,225.33 thousand. This reflects steady participation in the electrical equipment manufacturing space.

Companies operating in this segment often benefit from rising infrastructure spending, industrial expansion, and ongoing electrification projects.

However, the sector is also exposed to raw material price fluctuations, project execution timelines, and competition from established players.

Grey Market Premium and Market Sentiment

The Grey Market Premium GMP for the Accord Transformer & Switchgear IPO is currently reported at ₹153.

This is significantly higher than the upper price band of ₹46. While GMP operates in an unregulated and informal market, such a high premium suggests strong speculative demand ahead of listing.

It is important to understand that:

• Grey market trading is unofficial.

• GMP does not guarantee listing performance.

• Prices in the grey market are driven purely by demand and supply.

• Investors should not rely solely on GMP for investment decisions.

Despite the risks, high GMP levels often generate heightened interest during the subscription period.

Industry Outlook

India’s power sector continues to expand, driven by industrial growth, urban infrastructure development, renewable energy integration, and increasing electricity demand.

Manufacturers of transformers and switchgear equipment play a critical role in:

• Power distribution network expansion

• Substation upgrades

• Industrial electrification

• Commercial building infrastructure

Government initiatives focused on strengthening power infrastructure and reducing transmission losses create opportunities for equipment suppliers.

However, competition in this segment remains intense, with both large established players and smaller regional manufacturers competing for contracts.

Lead Manager and Registrar

The Book Running Lead Manager for the issue is GYR Capital Advisors Private Limited.

The Registrar to the Issue is KFIN Technologies Limited.

The Market Maker for the IPO is Giriraj Stock Broking Pvt. Ltd., which will provide liquidity in the secondary market as per SME listing norms.

Use of Funds

As the IPO consists entirely of a fresh issue, the proceeds will be utilised by the company. While detailed objectives are not specified here, typical uses include:

• Working capital requirements

• Business expansion

• Machinery upgrades

• General corporate purposes

Strengthening the financial base can support the company’s ability to execute larger orders and improve operational capacity.

Investor Considerations

Before investing in the Accord Transformer & Switchgear IPO, investors may consider:

• Revenue growth trends

• Profitability margins

• Order book strength

• Competitive positioning

• Industry demand outlook

• Valuation compared to peers

SME IPOs can offer higher growth potential but may also involve higher volatility and lower liquidity compared to mainboard IPOs.

Listing Expectations

The shares are expected to debut on the NSE on March 02, 2026. Given the reported GMP of ₹153, market participants are closely watching potential listing performance.

However, actual listing gains depend on:

• Subscription levels

• Overall market sentiment

• Institutional participation

• Broader economic conditions

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