Susan Electricals India coming with IPO to raise up to Rs 70.38 crore

Susan Electricals India

• Susan Electricals India is coming out with an initial public offering (IPO) of 55,42,000 shares in a price band of Rs 120-127 per equity share. 
• The issue will open on June 11, 2026 and will close on June 15, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 12.00 times of its face value on the lower side and 12.70 times on the higher side.
• Book running lead manager to the issue is Seren Capital.
• Compliance officer for the issue is Reshma Shukla.

Profile of the company

Susan Electricals India is engaged in the manufacturing of aluminium and copper-based electrical winding wires, conductors and cables in various specifications, sizes and configurations. Under the cables segment, it manufactures low tension (LT) cables, including Low Tension Aerial Bunched (LT AB) cables (up to 1.1 kV), High Tension (HT) cables of specified voltage grades and Medium Voltage Covered Conductor (MVCC) Cables. Under the wires and conductors’ segment, its offerings include winding aluminium wires and strips, winding copper wires and strips and aluminium conductors, manufactured in accordance with prescribed specifications.

It primarily supplies its products to state-owned electricity distribution utilities (DISCOMs), private sector entities engaged in infrastructure development & EPC activities, as well as entities operating in the electrical wires, cables and conductor segment. Its products are primarily used in power distribution networks, transformer & motor winding applications, overhead distribution lines and underground cabling works. Its supplies to DISCOMs are undertaken pursuant to tender-based procurement processes, while supplies to EPC contractors and traders are made based on purchase orders and mutually agreed commercial terms. In addition to manufacturing cables and wires, it also undertakes trading of aluminium wires and rods, which are used as key raw materials in its production process, and also provides job work services primarily relating to processing of winding wires & strips to certain customers. 

It operates three manufacturing facilities located in Ghaziabad, Uttar Pradesh. One of its facilities is situated at SSGT Road, Ghaziabad, Uttar Pradesh, admeasuring around 496.60 sq. mtr. The other two facilities are located at Plot No. 18/27 and Plot No. 18/31, Site-IV, Industrial Area, Sahibabad, Ghaziabad, Uttar Pradesh, admeasuring around 1,924.50 sq. mtr. and 4716.68 sq. mtr., respectively. These facilities are used for manufacturing electrical wires, conductors and cables, and support its production requirements in line with applicable technical standards and customer specifications. It has also obtained ISO 9001:2015 certification for quality management systems, ISO 45001:2018 certification for occupational health and safety management systems and ISO 14001:2015 certification for environmental management systems.

Proceed is being used for:

• Funding of capital expenditure towards Expansion of existing manufacturing facility situated at Plot No.18/31, Sahibabad, Ghaziabad, Uttar Pradesh.
• Funding of working capital requirements.
• General corporate purposes.

Industry overview

India’s electricity sector has undergone sustained structural expansion over the past decade, supported by industrial growth, near-universal electrification, rising cooling demand, and increasing integration of renewable energy. The sector has witnessed consistent capacity addition, expansion of transmission and distribution infrastructure, and rising electricity consumption intensity, reflecting the system’s ability to accommodate growing demand while improving reliability and access. These developments underscore the ongoing scale-up of India’s power ecosystem and its role in supporting broader economic activity and infrastructure development.

India’s electricity transmission and distribution (T&D) industry operates through an integrated supply chain encompassing raw material sourcing, equipment manufacturing, engineering procurement-construction (EPC), and long-term operation and maintenance, forming the backbone of the country’s power system. The supply chain is shaped by national planning under the National Electricity Plan, accelerating renewable energy integration, and reform-oriented programmes aimed at strengthening grid capacity, reliability, and efficiency. Cumulative investments of around Rs 9.15 lakh crore ($109.50 billion) are envisaged in transmission and distribution infrastructure by 2032, positioning T&D as one of the largest capital deployment segments within the power sector, as outlined under the National Electricity Plan (Transmission) issued by the Ministry of Power through the Press Information Bureau (PIB), Government of India.

The Indian Electrical Equipment Market is estimated to grow from $73.80 billion in 2025E to $222.74 billion in 2035P, representing a CAGR of 11.68%, significantly higher than the global average. This growth outlook is supported by official projections of rising electricity requirement and peak demand from Central Electricity Authority (CEA), continued expansion of grid-connected renewable capacity highlighted by the Ministry of Power and MNRE, and the large T&D capex envisaged under NIP and GEC frameworks. Transmission-side investments through Green Energy Corridor phases and state-level renewable-energy evacuation systems continue to require high-voltage transformers, protection systems, control gear, and advanced switchgear. Domestic manufacturing capability is further reinforced by Production Linked Incentive (PLI) schemes in advanced cell chemistry, solar PV modules, and electronics, which strengthen localisation of upstream and downstream components and broaden the industrial ecosystem supporting electrical equipment production. Taken together, these policy-backed demand drivers and manufacturing initiatives create a sustained multi-year opportunity across the generation, transmission, distribution, and industrial electrical equipment value chain in India.

Pros and strengths

Vendor registrations and approvals across multiple states: The company has obtained vendor registration approvals from various state-owned power distribution utilities (electricity distribution companies or DISCOMs) across India, either directly or under various central and state government schemes, including the Revamped Distribution Sector Scheme (RDSS), a Central Government scheme, and Mukhyamantri Ujjawal Jharkhand Yojana (MUJY) and Mukhyamantri Krishi Vidhyut Sambandh Yojana - Phase II (MKVSY PH-II), which are State Government schemes. These approvals enable it to participate in tenders, either directly or through EPC contractors, for the supply of its cables and wires. 

Geographically dispersed customer base: For the fiscal year ended 2026, the company derived its entire revenue from operations within India, covering 14 States and 1 Union Territory. During the respective period, its key markets, namely Uttar Pradesh, Delhi, Madhya Pradesh, Haryana, Rajasthan, Telangana, Karnataka and Gujarat contributed an aggregate of Rs 26,318.03 lakh representing around 97.70% of its total revenue from operations. Its presence across multiple states enables it to service customers in different regions and reduces dependence on a single geographic market. Sales from diverse locations also assist in mitigating the impact of regional demand variations on its overall operations.

In-house manufacturing facilities supported by quality certifications: The company operates through three in-house manufacturing facilities, all of which are based in Ghaziabad, Uttar Pradesh and are equipped with machinery and requisite infrastructure for the manufacture of winding wires, cables, and conductors. Two of its manufacturing facilities are located at Site - IV, Industrial Area, Sahibabad, Ghaziabad, Uttar Pradesh and the third manufacturing facility is situated at SSGT Road, Ghaziabad, Uttar Pradesh.

Risks and concerns

Significant portion of revenue from sale of LT cables: It generates a significant portion of its revenue from its key product, namely Low Tension (LT) cables. Revenue from LT cables accounted for 31.35%, 55.85% and 16.10% of its revenue from operations for the year ended Fiscal 2026, Fiscal 2025 and Fiscal 2024. LT cables are insulated conductors used in power distribution networks for the transmission of electricity within distribution systems. This category includes PVC and XLPE insulated cables in various configurations, including Aerial Bunched (AB) cables used in overhead distribution systems. These products are supplied to state-owned electricity distribution utilities (DISCOMs), EPC contractors and trading entities engaged in the distribution of electrical products. Any decline in demand for LT cables, whether due to increased competition, pricing pressures, reduction in distribution infrastructure activity, changes in applicable technical standards or specifications, or customer preference for alternative products or suppliers, may adversely affect its revenues.

Majority of revenue from limited number of customers: A majority portion of its revenue from operations is derived from a limited number of customers, comprising state-owned electricity distribution utilities (DISCOMs), private sector entities engaged in infrastructure development & EPC activities, as well as entities operating in the electrical wires, cables and conductor segment. The revenue from its top 10 customers accounted for 63.68%, 95.94% and 98.00% of its revenue from operations during Fiscal 2026, 2025 and 2024, respectively. In the case of Government customers, orders are secured pursuant to tenders. The volume of orders may vary depending on annual capital expenditure allocations, sanctioned project quantities, circle-wise material allocation and drawdown under awarded contracts. Any reduction in sanctioned quantities, lower drawdown against rate contracts, delay in execution of distribution works or allocation of orders to alternative suppliers may adversely affect its revenues.

Geographical concentration of manufacturing operations in Ghaziabad: It operates three manufacturing facilities located at Ghaziabad, Uttar Pradesh. Due to the geographical concentration of its manufacturing operations in Ghaziabad, its operations are susceptible to local, regional and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in the transport of its products and raw materials, loss of key managerial personnel or senior management personnel and/or otherwise adversely affect its business, financial condition and results of operations. In addition, it generates major domestic sales through its customers situated in Uttar Pradesh. Such geographical concentration of its business in the particular region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in this region, which may adversely affect its business prospects, financial conditions and results of operations.

Outlook

Susan Electricals India is primarily engaged in the manufacturing of aluminium and copper based electrical winding wires, conductors and cables in various specifications, sizes and configurations. The company has vendor registrations and approvals across multiple states, supporting tender participation with government entities. These approvals enable it to participate in tenders, either directly or through EPC contractors, for the supply of its cables and wires. On the concern side, it derives a major portion of its revenue from Government customers, particularly state-owned electricity distribution utilities (DISCOMs), and any reduction in Government expenditure, adverse changes in procurement policies or failure to secure tenders may adversely affect its business, financial condition, results of operations and cash flows.

The company is coming out with a maiden IPO of 55,42,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 120-127 per equity share. The aggregate size of the offer is around Rs 66.50 crore to Rs 70.38 crore based on lower and upper price band respectively. On performance front, its revenue from operations increased by 98.44% to Rs 26,935.66 lakh for FY 2026 from Rs 13,573.97 lakh for FY 2025. Profit after tax has increased by 222.89% from Rs 565.10 lakh for FY 2025 to Rs 1,824.64 lakh for FY 2026.

As part of its growth strategy, it proposes to expand its existing manufacturing capabilities in the High Tension (HT) and Medium Voltage Covered Conductor (MVCC) cable segments, which cater to transmission and distribution requirements across industrial, commercial and utility applications. MVCC cables are widely deployed in overhead power distribution networks to enhance network reliability and reduce technical losses. In addition, it seeks to broaden the marketing base and expand geographical presence across additional regions in India. At present, its operations cater to customers, including government and private sector entities, located in Uttar Pradesh, Delhi, Madhya Pradesh, Telangana, Haryana, Rajasthan and Karnataka. In furtherance of this strategy, it proposes to strengthen its presence in other states, including Tamil Nadu, Kerala, Uttarakhand and Gujarat, through increased customer engagement, participation in tenders and development of relationships with distributors, contractors and institutional customers in these regions.