Sika Interplant Systems Ltd. Share Price

Pursuant to provisions of SEBI PIT Regulations (as amended) and ‘Code of Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by insiders (‘Code of Conduct under SEBI PIT Regulations’), Rajoo Engineers has informed that the trading window for dealing in securities of the Company for all designated persons and their immediate relatives shall remain closed from October 01, 2026 until 48 hours from the declaration of the Unaudited Financial Results of the Company for the Second Quarter & Half Year ending on September 30, 2026. The date of meeting of the Board of Directors to approve the aforesaid financial results will be intimated in due course. Accordingly, all the designated persons and their immediate relatives are advised not to trade (buy or sell or pledge, etc.) in the securities/shares of the Company during the aforesaid period of closure of the Trading Window.

The above information is a part of company’s filings submitted to BSE. 

Vans Electroengineerings

• Vans Electroengineerings is coming out with an initial public offering (IPO) of 28,80,000 shares in a price band of Rs 112-118 per equity share.
• The issue will open for subscription on September 29, 2026 and will close on October 1, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 11.20 times of its face value on the lower side and 11.80 times on the higher side.
• Book running lead manager to the issue is Hem Securities.
• Compliance officer for the issue is Ashutosh Pandey.

Profile of the company

Vans Electroengineerings is an ISO 9001:2015 certified company, engaged in the business of manufacturing and supplying components of traction power supply and overhead equipment system used in Indian railway electrification infrastructure and metro systems along with renewable energy systems. The aforementioned equipment is mainly supplied to Indian Railways and railway contractors. The company possesses expertise in the manufacture and supply of traction power supply and overhead equipment systems, enabling us to maintain a product portfolio approved by the Research Designs and Standards Organization (RDSO) for use in traction substations, sectioning posts, feeding posts, and other railway electrification applications, includes Single-Pole Vacuum Circuit Breakers, Double-Pole Vacuum Circuit Breakers, Single-Pole Vacuum Interrupters, and Double-Pole Vacuum Interrupters.

At the manufacturing facility, it carries out manufacturing of vacuum circuit breakers and vacuum interrupters, which is equipped with various machinery including busbar multi-processing machine, horizontal bandsaw machine and other handling tools along with in-house testing and quality control infrastructure to ensure proper product handling and efficient manufacturing operations. Its manufacturing facility is equipped with in-house testing and quality control equipment that enable it to conduct various tests and inspections throughout the production process. The machinery and equipment deployed at its facility facilitate efficient manufacturing of products in accordance with customer specifications and applicable quality standards. These testing capabilities support the reliability, performance and safety of its products in demanding railway electrification applications.

Its quality control capabilities enable us to develop required solutions for Indian railways, metro systems, industrial duty, and special applications while ensuring compliance with applicable domestic and international standards. As a testament to its commitment towards quality along with in-house testing, it has engaged with Korea Electrotechnology Research Institute (KERI), South Korea and Central Power Research Institute (CPRI), Bangalore to conduct various tests, ensuring compliance with international standards including IEC 62505-1: 2016, IEC 62271-100/2017-07 among other standards, to offer products and solutions aligned with global benchmarks.

Proceed is being used for:

• Meeting working capital requirements of the company
• General corporate purpose

Industry overview

The Indian railway system is regarded as the foundation and lifeblood of the economy. Indian railways span thousands of kilometres practically covering the entire nation, making it the fourth largest in the world after the US, China, and Russia. The Railways Board, which has a monopoly over the provision of rail services in India, oversees overseeing the whole infrastructure. Due to its low cost and effective operations, railways continue to be the most popular means of transportation for most Indians when travelling long distances. India's railway network is recognised as one of the largest railway systems in the world under single management. The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy-efficient and economic mode of conveyance and transport. Indian Railways is the preferred carrier of automobiles in the country.

Indian Railways’ gross revenue stood at Rs 2.79 trillion ($31.57 billion) for FY26, reflecting the continued strength of its freightled earnings model and steady growth in passenger revenues. Revenue of Indian railway sector companies is expected to grow 5 % in FY26, with operating margins around 12 %, supported by government capital outlay of Rs 2,52,000 crore ($29.41 billion) and a strong order book-to-income ratio of 2.77. India’s export of railways grew at and reached $315 million in FY24 as compared to $173 million in FY21. Since 2016, Indian Railways has exported over 1,000 rail cars, 3,800 bogies, 4,000 flatpacks, and 5,000 propulsion systems to countries including Australia, Canada, Germany, Egypt, Sweden, Brazil, the UK, Saudi Arabia, France, Mexico, Romania, Spain, Italy, Mozambique, Senegal, Sri Lanka, Myanmar, Bangladesh, and the Republic of Guinea, reflecting rapid growth in global exports up to 2025.

Indian Railways is poised for sustained long-term growth, supported by a record capital expenditure allocation of Rs 2.93 trillion ($32.56 billion) in Union Budget 2026–27 and continued investments in network expansion, safety, and high-speed connectivity. Ongoing initiatives such as multitracking projects, station redevelopment under the Amrit Bharat Station Scheme, 100% electrification efforts, and capacity augmentation through dedicated freight corridors are expected to significantly enhance operational efficiency, reduce logistics costs, and improve passenger experience. The continued rollout of Vande Bharat sleeper trainsets and progress on the Mumbai–Ahmedabad Bullet Train project further reinforce the sector’s transition towards modern, technology-driven rail infrastructure.

Pros and strengths

Niche market focus with quality and timely delivery: The company has strategically positioned itself within a specialized niche, focusing exclusively on the rigorous technical demands of the Indian Railways. By concentrating on Vacuum Circuit Breakers and Interrupters, the organization avoids the distractions of broader markets, ensuring its technical expertise is aligned with 25kV traction requirements. This focus, backed by over a decade of leadership experience, enables the delivery of quality tailored solutions that meet strict government timelines. This intense specialization lowers its operational complexity, fosters deep institutional customer alignment, and ensures consistent product reliability for railway electrification and modernization networks. Furthermore, the stringent regulatory approvals required to manufacture and supply new products in the railways, create high entry barriers for potential competitors, thereby positioning it to capture future growth opportunities.

Quality assurance standards and RDSO approved entity:  Its quality control capabilities enable it to develop required solutions for Indian railways, metro systems, industrial duty, and special applications while ensuring compliance with applicable domestic and international standards. As a testament to its commitment towards quality along with in-house testing, it has engaged with Korea Electrotechnology Research Institute (KERI), South Korea and Central Power Research Institute (CPRI), Bangalore to conduct various tests, ensuring compliance with international standards including IEC 62505-1: 2016, IEC 62271-100/2017-07 among other standards, to offer products and solutions aligned with global benchmarks. Further, it has received approvals from the Research Designs and Standards Organization (RDSO), Lucknow for the manufacture and supply of Vacuum Circuit Breakers and Vacuum Interrupters in accordance with prescribed technical specifications and standards.

Core engineering and integrated engineering, assembling and testing capabilities: The company maintains comprehensive in-house design and development capabilities to manage the entire product lifecycle of vacuum circuit breakers (VCBs) and vacuum interrupters (VIs), from initial conceptualization through engineering, assembly, testing and validation. Supported by an in-house engineering team, this technical capacity allows for production of products as to requisite specifications. Retaining internal control over the process facilitates rapid design iterations and rigorous quality management, ensuring compliance with the technical and operational requirements of modern railway infrastructure. Complementing these engineering capabilities is an integrated engineering, assembly and testing facility at manufacturing facility at Salem, Tamil Nadu, where it undertakes assembly, quality testing and validation of its products prior to dispatch, which is optimized to minimize material handling and increase operational efficiency.

Risks and concerns

Dependence on key product verticals for revenue generation: The company generates a significant portion of its revenue from its two-key product verticals i.e. Vacuum Circuit Breakers and Vacuum Interrupters which contributed to 85.50% of its total revenue in financial year 2025-26 amounting to Rs 1,953.13 lakh, 99.52% of its total revenue in financial year 2024-25 amounting to Rs 1349.84 lakh and 94.58% of its total revenue in financial year 2023-24 amounting to Rs 245.50 lakh. Any decline in the sales of its key product/s could have an adverse impact on its business, results of operations and financial condition.

High customer concentration and dependence on key customers: A substantial portion of its revenue from operations is generated from a limited number of customers operating within the railway and railway electrification ecosystem. Its business model is dependent upon continued engagement with existing customers, repeat purchase orders and successful participation in procurement programs undertaken by such customers. Its top 1 customer contributed approximately 42.66%, 61.60% and 76.77% of its revenue from operations during Financial Year 2025-26, Financial Year 2024-25 and Financial Year 2023-24, respectively. Further, its top five customers contributed around 65.74%, 82.14% and 97.48% of its revenue from operations during the same periods. Further, as it conducts business with these customers without long-term contractual commitments, there can be no assurance that such customers will continue to place orders with it in the future. Any reduction in customer spending, loss or suspension of approved vendor status, changes in procurement practices or preference towards competing suppliers may adversely affect its revenues, profitability, cash flows and results of operations.

Reliance on key suppliers and timely availability of raw materials: Its manufacturing operations require the continuous availability of various raw materials, components, assemblies and engineering inputs from domestic suppliers and vendors. The timely procurement of such materials is critical for maintaining production schedules and meeting customer delivery commitments. It generally procures raw materials through purchase orders and may not have long-term supply arrangements with all suppliers. It may be dependent on a limited number of suppliers for certain critical raw materials and components. For Financial Year 2025-26, Financial Year 2024-25 and Financial Year 2023-24, purchases from its top 1 supplier represented approximately 25.24%, 56.86% and 64.18% of its total raw material consumed, respectively. Any disruption in supply arising from supplier insolvency, production interruptions, transportation issues, supplier capacity constraints, regulatory restrictions, labour disputes or geopolitical events may adversely affect its ability to manufacture products in a timely manner.

Outlook

Vans Electroengineerings is engaged in the business of manufacturing and supplying mainly components of traction power supply and overhead equipment system for the purpose of being used in Indian railway electrification infrastructure and metro systems along with renewable energy systems. These equipments are majorly supplied to Indian Railways and associated contractors. On the concern side, its business and revenue are substantially dependent on the Indian Railways. Any adverse change in policy of the Indian Railways may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company is coming out with a maiden IPO of 28,80,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 112 - 118 per equity share. The aggregate size of the offer is around Rs 32.26 crore to Rs 33.98 crore based on lower and upper price band respectively. On performance front, its total income for the financial year 2025-26 stood at Rs 2,319.20 lakh whereas in Financial Year 2024-25 the same stood at Rs 1,381.79 lakh, representing an increase of 67.84%. The company reported restated profit after tax for the financial year 2025-26 of Rs 539.23 lakh in comparison to Rs 172.96 lakh in the financial year 2024-25, representing an increase of 211.77%.

Meanwhile, the company intends to strengthen its established market position by strategically diversifying its manufacturing operations into complementary product lines. While core production capabilities remain focused on single and double pole vacuum circuit breakers and vacuum interrupters, the manufacturing framework is expanding to integrate related components, including Single Bottle Circuit Breaker, earthing switches. This transition into broader power distribution apparatus allows the company to maximize its manufacturing capacity and leverage economies of scale, leading to improved operational efficiency and optimized resource utilization.