Kanohar Electricals Limited is set to enter the Indian primary market with a mainboard IPO of up to ₹1,055.74 crore. The company, which has more than five decades of experience in transformer manufacturing and electrical equipment, has fixed the price band at ₹601 to ₹632 per equity share. The IPO comprises a fresh issue of ₹300 crore and an offer for sale of up to 1,19,57,915 shares worth up to ₹755.74 crore at the upper price band.
Kanohar Electricals IPO Details
| Particular | Details |
|---|---|
| Company | Kanohar Electricals Limited |
| IPO Type | Mainboard IPO |
| Issue Type | Book-Built Issue |
| IPO Open Date | September 8, 2026 |
| IPO Close Date | September 10, 2026 |
| Price Band | ₹601 – ₹632 per share |
| Face Value | ₹2 per share |
| Total Issue Size | Up to ₹1,055.74 crore |
| Fresh Issue | ₹300 crore |
| Offer for Sale | Up to 1,19,57,915 shares |
| Lot Size | 23 shares |
| Minimum Investment | ₹14,536 |
| Anchor Investor Date | September 7, 2026 |
| Basis of Allotment | September 11, 2026 |
| Refund Initiation | September 15, 2026 |
| Credit of Shares | September 15, 2026 |
| Listing Date | September 16, 2026 |
| Listing Exchanges | BSE and NSE |
| QIB Reservation | Not more than 50% |
| NII Reservation | Not less than 15% |
| Retail Reservation | Not less than 35% |
| Lead Managers | Nuvama Wealth Management, IIFL Capital Services |
| Registrar | MUFG Intime India |
The Kanohar Electricals IPO will remain open for subscription from September 8 to September 10, 2026. The basis of allotment is expected on September 11, followed by refund initiation and share credit on September 15. The shares are scheduled to list on BSE and NSE on September 16. Retail investors can apply for a minimum of 23 shares, requiring ₹14,536 at the upper end of the price band.
What Does Kanohar Electricals Do?
Kanohar Electricals is an electrical equipment manufacturer with operations dating back to 1972. The company primarily operates through two business segments: transformer manufacturing and engineering, procurement and construction, or EPC. Its manufacturing operations focus on power transformers and specialised electrical equipment, while its EPC business provides turnkey solutions for substations and transmission lines.
The company serves several important segments of India’s power infrastructure ecosystem, including power transmission and distribution, renewable energy and railways. Its specialised product capabilities include high-capacity transformers and Scott transformers used in railway electrification. The company also has certifications and testing capabilities for high-voltage transformer products, which can act as an entry barrier in specialised segments.
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Kanohar currently operates manufacturing facilities at Rithani and Gangol in Uttar Pradesh, with combined transformer manufacturing capacity of approximately 19,200 MVA. The Gangol facility can manufacture transformers up to 500 MVA and 400 kV, while the company also has backward-integrated manufacturing capabilities for components used in its products.
Kanohar Electricals IPO Fund Utilisation
The ₹300 crore fresh issue is intended to strengthen the company’s manufacturing capacity and working capital position. Approximately ₹64.18 crore is proposed to be used for capital expenditure, including machinery and equipment, civil construction and development work at the Gangol facility, solar power plants and electric vehicles and material-handling equipment.
A much larger ₹155 crore is earmarked for incremental working capital requirements, while the balance is intended for general corporate purposes. This working-capital requirement is important because transformer manufacturing and EPC projects can involve significant cash tied up between procurement, production, project execution and customer payments.
The IPO also contains a substantial OFS component. Up to 1.20 crore shares are being offered for sale by existing shareholders, meaning a significant portion of the overall IPO proceeds will go to selling shareholders rather than directly into the company’s balance sheet. At the upper price band, the OFS component is worth approximately ₹755.74 crore.
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Kanohar Electricals Financial Performance
Kanohar Electricals has recorded significant improvement in its financial performance over the past three years. Revenue from operations increased from ₹276.69 crore in FY24 to ₹450.61 crore in FY25 and ₹653.84 crore in FY26. Over the same period, EBITDA increased from ₹31.07 crore to ₹93.39 crore and then ₹180.42 crore.
Profit after tax rose sharply from ₹17.76 crore in FY24 to ₹65.12 crore in FY25 and ₹129.73 crore in FY26. This represents substantial profit growth over the period, although investors should remember that the FY24 profit base was relatively small and therefore the percentage growth appears particularly strong.
The company’s FY26 numbers also show improving profitability. The IPO data indicates an EBITDA margin of around 27.59%, while return ratios have also been strong. Borrowings stood at approximately ₹39.04 crore against net worth of ₹372.84 crore as of March 31, 2026, indicating relatively low financial leverage.
Strong Order Book Provides Revenue Visibility
One of the major attractions of the Kanohar Electricals story is its order book. As of March 31, 2026, the company’s order book stood at approximately ₹1,818.32 crore, substantially higher than ₹861.47 crore in FY25 and ₹595.85 crore in FY24. The sharp increase provides significant order visibility compared with the company’s FY26 revenue base.
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Government-sector contracts account for approximately 93.62% of the FY26 order book. The company’s transformer manufacturing business represented about 83.43% of FY26 revenue, while EPC contributed approximately 16.44%. This positioning gives Kanohar exposure to India’s continuing investments in transmission infrastructure, renewable-energy integration and railway electrification.
India’s expanding electricity demand and investments in grid infrastructure could provide a structural growth opportunity for transformer manufacturers. Renewable-energy projects also require high-capacity transformers and related equipment to connect generation capacity to the grid, while railway electrification creates demand for specialised transformer products.
Kanohar Electricals IPO Valuation
At the upper price band of ₹632, Kanohar Electricals is valued at approximately ₹5,000 crore after the issue. Based on FY26 earnings, the IPO is being offered at a valuation that requires investors to price in continued growth in revenue and profitability. Different market sources calculate valuation multiples using different share-count and EPS conventions, so investors should rely on the final offer-document figures when assessing the exact P/E multiple.
The valuation needs to be viewed alongside the company’s rapidly expanding order book, improving margins, specialised transformer capabilities and relatively low debt. At the same time, the recent acceleration in profitability means investors should consider whether the company can sustain its current margins and growth rate over the longer term.
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Key Risks in Kanohar Electricals IPO
Customer concentration is one of the biggest risks. The company’s top 10 customers contributed approximately 93.16% of revenue from operations in FY26, while its largest customer alone accounted for around 31.28%. Such concentration means the loss, delay or reduction of orders from a major customer could materially affect revenue and profitability.
Government and utility dependence is another important consideration. Around 85.37% of FY26 revenue came from tenders awarded by government-controlled entities, while government-sector customers represented 93.62% of the order book. Tender-based business can provide large opportunities but also exposes the company to competitive bidding, execution requirements, payment delays and the possibility of disqualification or debarment.
Raw-material costs are another factor investors should monitor. Copper conductors and cold-rolled grain-oriented steel are important inputs for transformer manufacturing. The cost of materials consumed represented approximately 75.90% of total expenses in FY26. Volatility in copper and steel prices could therefore affect margins, particularly on contracts where price escalation mechanisms are limited.
Working-capital requirements also deserve attention. The company has a relatively long cash-conversion cycle, with trade receivables and working capital tying up capital during project execution. The decision to allocate ₹155 crore of fresh IPO proceeds toward incremental working capital highlights the importance of maintaining sufficient liquidity as the business expands.
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There is also concentration at the manufacturing level because the company’s two major facilities are located in Uttar Pradesh. Any significant disruption at these facilities could affect production, deliveries and project execution. The company also faces competition from established domestic and multinational electrical-equipment players, including BHEL, Hitachi Energy India, CG Power, Siemens Energy and Transformers & Rectifiers (India).
Kanohar Electricals IPO: What Investors Should Watch
Kanohar Electricals enters the IPO market with several positive factors, including strong recent revenue and profit growth, a rapidly expanding order book, specialised transformer capabilities and relatively low debt. The company’s exposure to power transmission, renewable energy and railway electrification also places it in sectors where long-term infrastructure investment could support demand.
However, the IPO also has important considerations. The large OFS component means most of the overall issue proceeds will go to selling shareholders rather than the company. Customer concentration is extremely high, government tenders account for a substantial portion of revenue and order book, and raw-material costs can influence margins. The company must also maintain execution quality and manage working capital as its order book expands.
For investors, the key question is whether Kanohar Electricals can sustain its recent financial improvement while converting its large order book into profitable revenue and maintaining healthy cash flows. The company’s specialised capabilities and infrastructure-sector exposure provide an interesting growth story, but the IPO valuation and concentration risks should be evaluated carefully before making an investment decision.
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Disclaimer: This article is for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or subscribe to the Kanohar Electricals IPO. IPO dates, pricing, market indications and other information may change. Investors should conduct their own research and carefully review the company’s offer documents, financial information and risk factors before making any investment decision.
