About Kanohar Electricals IPO
Kanohar Electricals Limited, a Meerut-based transformer manufacturer, opens its IPO for public subscription from September 8, 2026, to September 10, 2026, at a price band of ₹601 to ₹632 per equity share of face value ₹2.
The IPO is a book-built issue of ₹1,055.74 crore, comprising 1,67,04,750 equity shares. It is a fresh issue of 47,46,835 shares worth up to ₹300.00 crore and an offer for sale of 1,19,57,915 equity shares worth approximately ₹755.74 crore.
Business Overview of Kanohar Electricals
Kanohar Electricals Limited was incorporated in 1972 and manufactures transformers in India, serving power transmission, railways, renewable energy, and power distribution.
The company operates through two business segments: transformer manufacturing and engineering, procurement, and construction (EPC).
Key Highlights of this IPO:
| Business Highlights | Key Details |
|---|---|
| Operating History | Over five decades in transformer manufacturing since 1972 |
| Business Segments | Transformer manufacturing and EPC |
| Manufacturing Facilities | Rithani and Gangol, Meerut, Uttar Pradesh |
| Installed Capacity | 19,200 MVA aggregate transformer capacity as on March 31, 2026 |
| RDSO Certification | One of four manufacturers in India certified by the Research Designs and Standards Organisation for 100 MVA 132 kV Scott transformers |
| Short-Circuit Certification | One of five companies in India with short-circuit test certification for 500 MVA, 400 kV transformers |
| End Industries | Power transmission, railways, renewable energy, power distribution |
| Regional Offices | Delhi, Mumbai, Kolkata, Bengaluru and Chennai |
| Team Strength | Over 526 employees |
Kanohar Electricals: IPO Date, Price, and Other Details
Here are the details of the upcoming Kanohar Electricals IPO:
| Particular | Detail |
|---|---|
| Issue Size | ₹1,055.74 crore (1,67,04,750 equity shares) |
| Offer Type | Book-built issue |
| Fresh Issue | 47,46,835 shares (up to ₹300.00 crore) |
| Offer for Sale | 1,19,57,915 equity shares (approx. ₹755.74 crore) |
| Face Value | ₹2 per equity share |
| Price Band | ₹601 to ₹632 per share |
| IPO Open Date | September 8, 2026 |
| IPO Close Date | September 10, 2026 |
| Basis of Allotment | September 11, 2026 |
| Refunds | September 15, 2026 |
| Credit to Demat Account | September 15, 2026 |
| Listing Date | September 16, 2026 |
| Lot Size | 23 shares |
| Minimum Investment (Retail) | ₹14,536 |
| Market Capitalisation (upper band) | ₹5,004.61 crore |
| Book Running Lead Managers | Nuvama Wealth Management Ltd.; IIFL Capital Services Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Listing Exchanges | BSE, NSE |
Kanohar Electricals IPO Reservation: Who Can Apply?
The Kanohar Electricals IPO has the following investor category reservation for each lot of 23 shares:
| Investor Category | Portion of Net Offer |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Offer |
| Retail Individual Investors | Not less than 35% of the Net Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Net Offer |
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 23 | ₹14,536 |
| Retail (Max) | 13 | 299 | ₹1,88,968 |
| S-HNI (Min) | 14 | 322 | ₹2,03,504 |
| S-HNI (Max) | 68 | 1,564 | ₹9,88,448 |
| B-HNI (Min) | 69 | 1,587 | ₹10,02,984 |
Strengths and Risks of Kanohar Electricals IPO
Every business has its strengths and risks, and Kanohar Electricals is no different. Here is a brief business analysis (as per the RHP) below:
Strengths
- Five decades of operating history: Manufacturing transformers continuously since 1972.
- Rare technical certifications: One of four Indian manufacturers RDSO-certified for 100 MVA 132 kV Scott transformers, and one of five with short-circuit test certification for 500 MVA, 400 kV transformers.
- Sharp margin expansion: EBITDA margin rose from 20.73% to 27.59% and PAT margin from 14.24% to 19.57% between FY25 and FY26.
- Strong return ratios: ROE of 42.12% and ROCE of 70.13% in FY26, both improved from the previous year.
- Low leverage: Total borrowings of ₹39.04 crore against net worth of ₹372.84 crore, a debt-to-equity ratio of 0.10.
- Scale and reach: 19,200 MVA aggregate capacity across two Meerut facilities and five regional offices.
- Sector tailwinds: Exposure to power transmission, railway electrification and renewable energy grid infrastructure.
Risks
- Offer for sale dominates the issue at ₹755.74 crore of the ₹1,055.74 crore total, roughly 72%. Only ₹300.00 crore reaches the company.
- Entire OFS is a promoter sale by K.Sons Family Trust, with promoter holding falling from 99.72% to 78.64%.
- Very short public float history with pre-issue public shareholding of just 0.28%.
- Margin sustainability is untested, with PAT margin having risen from 14.24% to 19.57% in a single year ahead of the issue.
- Customer concentration is typical of transformer manufacturing, where orders come from a limited pool of utilities and EPC contractors.
- Raw material price exposure to copper, steel and transformer oil, which can compress margins on fixed-price orders.
- Dependence on government capital expenditure cycles across transmission, railways and renewable energy programmes.
IPO Objectives – How Will the Funds Be Used?
Kanohar Electricals plans to utilise the net proceeds of the fresh issue towards:
| # | Purpose | Est. Amount (₹ crore) |
|---|---|---|
| 1 | Funding the capital expenditure requirements of the Company | 64.18 |
| 2 | Funding the incremental working capital requirements of the Company | 155.00 |
| 3 | General corporate purposes | Shall not exceed 25% of gross proceeds. |
Promoter Shareholding of Kanohar Electricals
The promoters of Kanohar Electricals Limited are Dinesh Singhal, Adesh Singhal, Vivek Singhal, Abhishek Singhal, Virat Singhal and Aditya Singhal.
| Category | Pre-IPO | Post-IPO |
|---|---|---|
| Promoter and Promoter Group | 99.72% | 78.64% |
| Public | 0.28% | 21.36% |
| Total | 100% | 100% |
Selling Shareholder In The Offer For Sale Of Kanohar Electricals IPO:
| Name | Category | Shares Offered | Amount (₹ crore) |
|---|---|---|---|
| K.Sons Family Trust | Promoter | 1,19,57,915 | 755.74 |
| Total | 1,19,57,915 | 755.74 |
Financial Performance of Kanohar Electricals (Restated, ₹ in crores)
Here's the table outlining the financial performance of Kanohar Electricals Limited from FY 2024 to FY 2026.
| Period Ended | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Total Income | 662.86 | 457.30 | 281.12 |
| EBITDA | 180.42 | 93.39 | 31.07 |
| Profit After Tax | 129.73 | 65.12 | 17.76 |
| Net Worth | 372.84 | 243.13 | 178.12 |
| Reserves and Surplus | 357.95 | 239.12 | 174.11 |
| Total Borrowing | 39.04 | 32.27 | 42.08 |
| Assets | 613.93 | 432.07 | 322.86 |
Key Performance Indicators of Kanohar Electricals
Based on the financials available in the RHP, the following key performance metrics of Kanohar Electricals IPO can be considered.
| KPI | As of FY 2026 | Mar 31, 2025 |
|---|---|---|
| Return on Equity (ROE) | 42.12% | 30.92% |
| Return on Capital Employed (ROCE) | 70.13% | 47.61% |
| Debt / Equity | 0.10 | 0.13 |
| Return on Net Worth (RoNW) | 34.80% | 26.78% |
| EBITDA Margin | 27.59% | 20.73% |
| PAT Margin | 19.57% | 14.24% |
| Net Asset Value (NAV) | ₹50.09 | ₹32.66 |
| Price to Book Value | 12.62 | 19.35 |
Registrar of Kanohar Electricals IPO
The Registrar of Kanohar Electricals IPO is MUFG Intime India Pvt. Ltd.
Phone: 022-49186000
Email: kanoharelectricals.ipo@in.mpms.mufg.com
Allotment status: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Lead Managers of Kanohar Electricals IPO
Nuvama Wealth Management Ltd. and IIFL Capital Services Ltd. are the book-running lead managers to the Kanohar Electricals IPO.
