Kanohar Electricals IPO: issue size, price band, subscription, GMP trend and listing details

Kanohar Electricals Limited brought a mainboard initial public offering (IPO) of ₹1,055.74 crore at a price band of ₹601 to ₹632 per share. The issue opened on September 8, 2026 and closed on September 10, 2026, with listing on September 16, 2026. The IPO comprised a ₹300.00 crore fresh issue (proceeds to the company) and a ₹755.74 crore offer for sale (OFS; proceeds to selling shareholders). The stock listed at ₹672.05, as per the stated listing price.

Business overview: transformer manufacturing and EPC services

Kanohar Electricals Limited manufactures transformers across a range of applications, including high-voltage power transformers, traction and Scott-connected transformers, shunt reactors, and distribution transformers. Alongside manufacturing, it offers engineering, procurement and construction (EPC) services for substations and transmission lines.

The company operates with owned manufacturing facilities in Meerut, Uttar Pradesh. It also highlights an engineering-led product development and testing setup, including short-circuit tested designs. In transformer and grid equipment procurement, such testing and certification references can be relevant for eligibility and approvals, particularly for higher-rated equipment.

Across end-markets, the company positions itself to serve utilities, railways, renewables-linked grid requirements, and distribution customers, using its combination of manufacturing and EPC capabilities.

Milestones and capability development

The company was incorporated in 1972 as Kanohar Electricals Private Limited in Meerut, Uttar Pradesh. One of the milestones disclosed is that its equity shares were listed on the Bombay Stock Exchange, Delhi Stock Exchange and Uttar Pradesh Stock Exchange in 1995.

Over time, the milestones provided indicate movement toward larger transformer ratings and broader execution scope:

In 2008, the company entered a sales and distribution agreement with an American transformer manufacturer for sales in the United States, Mexico and Canada. In 2010, it extended supply of power transformers up to 350 MVA, 400 kV class at Rithani, Uttar Pradesh. In 2011, it collaborated with Chung-Hsin Electric and Machinery Manufacturing Corporation (Taiwan) for gas insulated switchgear (GIS) manufacturing.

The company’s EPC expansion is described as starting in 2014 with EPC for gas insulated substations and extending in 2022 to EPC for transmission lines.

On product testing, the milestones include a 500 MVA 400/220/33 kV autotransformer tested for short circuit at National High Power Test Laboratory Private Limited in 2023, and Scott-connected traction power transformers tested for short circuit at National High Power Test Laboratory Private Limited and Central Power Research Institute in 2024. By 2025, the company states it expanded transformer manufacturing capacity to 19,200 MVA per annum up to 400 kV.

IPO structure, reservations, and proposed use of fresh issue proceeds

The IPO combined a fresh issue and an OFS. The fresh issue proceeds are proposed to be used by the company, while OFS proceeds accrue to the selling shareholders.

From a category allocation perspective, the issue included reservations across qualified institutional buyers (QIBs), non-institutional investors (NIIs) and retail individual investors (RIIs). The stated allocation split is 50% for QIBs, 15% for NIIs and 35% for retail. Anchor allocation details are also provided: 60% of the QIB portion was allocated to anchors, with a domestic mutual fund reservation of 33.33% within the anchor book.

For the fresh issue, the stated objectives include capital expenditure, incremental working capital, and general corporate purposes. The capital expenditure agenda described in the offer document context includes adding machinery and equipment at the Gangol manufacturing facility in Meerut, Uttar Pradesh to increase transformer manufacturing capacity, expand and automate backward integration facilities (including tanks and radiators), and improve operational efficiency. It also includes civil construction and interior development of an office building at Gangol.

Separately, the company has described sustainability-linked initiatives within the capital expenditure scope, including setting up solar power plants at its manufacturing facilities (Rithani and Gangol) and purchasing electric trucks and forklifts intended for transport and movement at the Gangol facility.

The proposed allocation amounts disclosed in the supplied data include ₹66.74 crore toward capital expenditure requirements and ₹130.00 crore toward incremental working capital requirements, while the general corporate purposes line item is presented without a specified allocation amount. These are proposed uses and not completed spending.

Financial performance and trajectory

The available financial disclosure in the supplied context covers FY2024 and FY2025, showing changes in revenue, profit after tax (PAT) and total assets.

In FY2024, total revenue was ₹276.69 crore and PAT was ₹17.76 crore, with a PAT margin of 6.42%. In FY2025, total revenue was ₹450.61 crore and PAT was ₹65.12 crore, with a PAT margin of 14.45%. Total assets were ₹322.86 crore in FY2024 and ₹432.07 crore in FY2025.

This two-year profile is the primary financial trend provided in the context for reading alongside the company’s stated plans to add capacity, expand backward integration and fund incremental working capital.

Valuation and disclosed key metrics at the IPO

The IPO documentation snapshot includes key performance indicators (KPIs) and valuation metrics. These include earnings per share (EPS) of ₹17.43 and a pre-IPO price-to-earnings (P/E) multiple of 36.26 times, along with a price-to-book multiple of 12.62 times.

Profitability and return ratios in the supplied context include an EBITDA margin of 27.59% (EBITDA presented as a margin percentage), a reported PAT margin of 19.57%, return on equity (ROE) of 42.12%, return on capital employed (ROCE) of 70.13%, and return on net worth (RoNW) of 34.80%. The stated debt-to-equity ratio is 0.10 times.

These metrics describe the issuer’s disclosed profile at the time of the issue and are typically tracked alongside subsequent financial reporting after listing.

Subscription outcome, GMP observations, risks, and monitoring points

The IPO was subscribed 10.22 times in total. Based on the supplied category data, QIB subscription was 6.50 times, NII subscription was 19.22 times, and retail subscription was 8.49 times.

Ahead of listing, the latest ten grey market premium (GMP) observations provided span September 13, 2026 to September 16, 2026, with GMP values ranging from ₹244 down to ₹182 against a referenced issue price of ₹632 in those observations. GMP is an unofficial market indicator and can change.

On listing, the stock listed on September 16, 2026 at ₹672.05, and the supplied listing gain figure is 6.34%.

Key risks and sensitivities described in the supplied context include revenue concentration around transformers; dependence on power, rail and renewables cycles that can affect orders and utilisation; exposure to state transmission utilities and policy-linked spending where delayed payments can strain cash flows and working capital; reliance on imported critical raw materials and components (such as electrical steel, copper, insulation and tap changers) creating supply-chain and currency volatility exposure; competitive intensity and compliance requirements that can affect costs and timelines; and constraints linked to skilled technical workforce availability that can influence manufacturing efficiency, scale-up and quality consistency.

Monitoring points that follow from the disclosed business model and IPO objectives include: working capital movement relative to revenue and delivery schedules; progress on the Gangol facility capex agenda covering machinery addition, automation and backward integration; execution outcomes across the combined manufacturing and EPC platform, including delivery timelines that depend on approvals and testing; and customer mix and payment timelines, particularly where business is linked to utilities and railways-linked customers.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.