Meerut-based transformer manufacturer Kanohar Electricals has launched its Initial Public Offering (IPO) for public subscription, running from September 8 to September 10, 2026. The company aims to raise Rs 1,056 crore by offering shares in a price band of Rs 601 to Rs 632 apiece. Investors can apply for a minimum of 23 equity shares.
IPO Details and Fund Utilization
The total issue size of Rs 1,056 crore comprises a fresh issuance of shares worth Rs 300 crore and an Offer-for-Sale (OFS) of up to 1,19,57,915 shares, amounting to Rs 756 crore, by promoter entities. The net proceeds from the fresh issue are earmarked for funding capital expenditure requirements, meeting working capital needs, and general corporate purposes.
Ahead of the public offering, Kanohar Electricals successfully raised Rs 316.72 crore from 42 anchor investors. Shares were allocated at Rs 632 each to prominent names including Mirae Asset MF, Tata MF, Motilal Oswal MF, HSBC MF, and Societe Generale, among others.
Company Background and Financial Performance
Established in 1972, Kanohar Electricals specializes in manufacturing transformers for diverse sectors such as power transmission, railways, renewable energy, and power distribution. The company operates two manufacturing facilities located in Rithani and Gangol, Meerut.
Kanohar Electricals has demonstrated robust financial growth. For the fiscal year ending March 31, 2026, the company reported a net profit of Rs 129.73 crore on a revenue of Rs 662.86 crore. This marks a significant increase from the previous fiscal year (FY25), where net profit stood at Rs 65.12 crore with a revenue of Rs 457.30 crore. Post-IPO, the company is expected to command a market capitalization close to Rs 5,005 crore.
Subscription Allocation and Listing
The IPO allocation reserves 50 percent of the net offer for Qualified Institutional Bidders (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 35 percent for retail investors. The shares are slated for listing on both the BSE and NSE on September 16, 2026.
Grey Market Premium (GMP) and Brokerage Views
Market observers note a healthy Grey Market Premium (GMP) for Kanohar Electricals shares, last reported between Rs 195-205 apiece. This suggests potential listing gains of approximately 31-32 percent for investors.
Brokerage firms have largely issued 'Subscribe' ratings for the IPO, citing various strengths:
- Anand Rathi Share & Stock Brokers: Recommended 'Subscribe for long-term,' highlighting the company's integrated manufacturing capabilities, exposure to India's growing power transmission and distribution sector, and superior growth/profitability despite a premium valuation (38.6x FY26 P/E).
- SBI Securities: Also recommended 'Subscribe,' noting impressive revenue, EBITDA, and PAT CAGR (53.7%, 141%, and 170.3% respectively) during FY24-FY26. They emphasized strong execution capabilities, a robust order book (Rs 1,818 crore), and reasonable valuation (38.6x FY26 post-issue P/E).
- Swastika Investmart: Rated 'Subscribe,' pointing to strong financial health (ROE 42.1%, ROCE 70.1%, low debt/equity 0.10x) and revenue visibility from its Rs 1,818 crore order book. They acknowledge concentration risk from 83% of FY26 revenue coming from transformers but find the valuation (34.5–36.3x FY26 EPS) reasonable.
- KC Securities: Recommended 'Subscribe for long-term,' viewing it as a credible play on India’s expanding power transmission and distribution capex cycle. They praised strong financial performance, operating leverage, and growth visibility across various applications.
- Ventura Securities: Issued a 'Subscribe' rating, focusing on Kanohar Electricals' strong presence in key sectors and significant financial improvement over the past three years.
Nuvama Wealth Management Ltd and IIFL Capital Services are the book-running lead managers for the IPO, with MUFG Intime India acting as the registrar.