Accord Transformer & Switchgear IPO

Inception and Corporate History

Accord was incorporated in 2014 as a private limited company with the objective of manufacturing transformers and electrical distribution equipment. Over the last decade, the company has evolved from a regional manufacturer into a diversified electrical equipment provider serving multiple infrastructure segments.

Key Milestones

Manufacturing Infrastructure

Accord operates two manufacturing facilities in Bhiwadi, Rajasthan, equipped with modern machinery and in-house testing labs.

Products and Services Offered

Product Portfolio

Electrical Equipment & Switchgear Industry Overview

Accord operates in the Indian electrical equipment and switchgear industry, which is closely linked to power generation, transmission, renewable energy, and infrastructure development.

Growth Drivers

• Expansion of renewable energy capacity

• Government focus on power infrastructure

• Smart grid and IoT-enabled switchgear

• EV charging infrastructure development

Regulatory Landscape

• Ministry of Power regulations

• Bureau of Indian Standards (BIS)

• Central Electricity Authority (CEA)

• Environmental & safety compliance

Industry Outlook

• Rising transformer demand due to grid expansion

• Increased adoption of compact substations

• Higher demand from renewable & EV segments

Core Business Activities

Accord is engaged in:

• Designing & engineering electrical equipment

• Manufacturing transformers & switchgear

• Supplying customised power solutions

• Providing after-sales support

Value Chain Positioning

Target Customers

Applicable Regulations

Compliance Status

• All key approvals in place

• ISO and environmental certifications maintained

• SEBI & BSE SME norms complied with

Key Business Risks

Financial & Operational Risks

• Working capital intensive operations

• Dependence on timely receivables

• Regulatory changes affecting power sector

Promoter Details

Promoter Contribution

• First-generation entrepreneurs

• Hands-on involvement in design & manufacturing

• Strategic partnerships with global players

• Focus on quality & technical excellence

Accord Transformer & Switchgear Limited follows a focused operating structure rather than a complex group setup. This allows tighter operational control and reduces governance and cash-flow leak risks.

Group Structure Overview

Key Promoter Group Entity

Insight:
The absence of multiple subsidiaries or SPVs simplifies:

• Financial reporting

• Cash management

• Regulatory compliance

This structure is investor-friendly, especially on the SME platform.

Board of Directors

Accord’s Board combines technical expertise, promoter leadership, and independent oversight.

Key Managerial Personnel (KMP)

Management Strengths

• Strong technical and manufacturing background

• Promoter-driven decision-making

• Experienced finance and compliance leadership

• Hands-on execution culture

Accord has instituted governance systems aligned with Companies Act, 2013 and SEBI SME regulations.

Statutory Board Committees

Governance Highlights

• Independent directors on key committees

• Regular statutory & internal audits

• Transparent promoter disclosures

Litigation Overview

As disclosed in the RHP, there are no material litigations involving:

• The company

• Promoters

• Directors

Investor View

The clean litigation profile reduces contingent liability risk, which is especially important for manufacturing SMEs.

Accord holds all key approvals required to operate and undertake the IPO.

Major Licences & Registrations

Restated Financial Performance (₹ in Thousands)

Performance Analysis

• Strong revenue acceleration in FY25

• Significant margin expansion due to operating leverage

• Improved profitability driven by scale and product mix

Borrowing Profile (₹ in Thousands)

Lenders & Security

• HDFC Bank, ICICI Bank

• Secured against:

  • Industrial & commercial properties

  • Book debts & inventory

  • Personal guarantees of promoters

Cash Flow Summary (₹ in Thousands)

Interpretation

• Operating cash flows supported by revenue growth

• Investing outflows relate to plant & machinery

• Financing inflows aligned with growth phase

Key Ratios

Management Commentary Highlights

• Focus on renewable energy and EV infrastructure

• Expansion of compact substation solutions

• Strengthening global technology partnerships

• Capacity utilisation and cost optimisation

Strategic Growth Pillars

Objects of the Issue

Strategic Rationale

• Strengthen balance sheet

• Support larger order execution

• Improve liquidity and credibility

• Enable scale-up in high-growth segments

IPO Pricing Methodology

The IPO of Accord Transformer & Switchgear Limited is being undertaken through a 100% book-built issue on the BSE SME platform, in compliance with SEBI (ICDR) Regulations, 2018. The final issue price is determined through demand discovered during the bidding process.

Key Parameters Used for Valuation

Peer Comparison Context (Indicative)

Investor Insight:
Accord’s valuation reflects its rapid scale-up phase, margin improvement trajectory, and exposure to renewable and EV infrastructure demand.

Equity Share Capital Details

Capital Structure Snapshot

Note:
Since the issue is a pure fresh issue, the entire IPO proceeds accrue to the company.

Expected Post-Listing Shareholding

Key Observations

• Promoters retain majority ownership and management control

• Public float meets BSE SME minimum requirements

• No dilution from Offer for Sale

Accord has adopted a conservative dividend policy, aligned with its capital-intensive manufacturing operations.

Dividend Policy Framework

Investor Perspective

• Company is in growth and expansion phase

• Dividend payouts may be limited in near term

• Reinvestment expected to improve long-term value

Taxation for Resident Individuals

Other Investor Categories

• NRIs & FPIs subject to applicable DTAA benefits

• TDS applicable on dividend income

Accord has disclosed related party transactions conducted in the ordinary course of business, primarily involving promoter entities.

Nature of Related Party Transactions

Governance Controls

• Transactions conducted at arm’s length

• Reviewed by Audit Committee

• Fully disclosed in financial statements

IPO-Related Agreements

Business-Critical Contracts

IPO Structure Summary

Investor Reservation

Shareholder Rights

Minority Shareholder Safeguards

• Independent directors

• Statutory audit oversight

• SEBI disclosure requirements

Mandatory Disclosures Summary

Accord Transformer & Switchgear Limited represents a fast-scaling electrical equipment manufacturer with:

• Strong exposure to renewable energy & EV infrastructure

• Rapid margin expansion

• Promoter-led technical execution

• Improving balance sheet post-IPO

This IPO is best suited for investors seeking SME exposure to India’s power, renewable, and infrastructure growth story.