Kanohar Electricals IPO Review: Key Details, Company Overview and Financials

The Kanohar Electricals IPO is a bookbuilding issue of Rs 1,055.74 crore, comprising a fresh issue of shares worth Rs 300 crore and an offer for sale of 1,19,57,915 equity shares worth Rs 755.74 crore by K. Sons Family Trust, the promoter entity. The IPO will open for subscription on 8 September 2026 and close on 10 September 2026. The allotment is expected to be finalised on 11 September 2026, while the shares are proposed to list on BSE and NSE around 16 September 2026.

The Kanohar Electricals IPO price band is set at Rs 601 to Rs 632 per share, with a lot size of 23 shares. Retail investors must apply for a minimum of 23 shares, requiring an investment of Rs 14,536, and can apply for up to 13 lots (299 shares, Rs 1,88,968). HNI investors need to apply for at least 14 lots, or 322 shares, amounting to Rs 2,03,504.

Nuvama Wealth Management Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the Kanohar Electricals IPO, while MUFG Intime India Pvt. Ltd. is the registrar to the issue.

For detailed information on the company's business, financials, risk factors and the proposed utilisation of proceeds, investors should refer to the Kanohar Electricals IPO Red Herring Prospectus (RHP) before making an investment decision.

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Company Overview

Incorporated in 1972, Kanohar Electricals Limited manufactures transformers used across power transmission, railways, renewable energy and power distribution. The company operates through two business segments: transformer manufacturing, and engineering, procurement and construction (EPC), the latter covering turnkey substation projects, bay augmentation and transmission line installation.

Kanohar Electricals runs two manufacturing facilities in Rithani and Gangol, both in Meerut, Uttar Pradesh, with an aggregate transformer manufacturing capacity of 19,200 MVA as of 31 March 2026. The company is one of five in India with short-circuit test certification for 500 MVA, 400 kV transformers, and one of four manufacturers certified by the Research Designs and Standards Organisation (RDSO), Indian Railways' R&D arm, to manufacture 100 MVA, 132 kV Scott transformers. As of March 2026, the company had over 526 employees and five regional offices across Delhi, Mumbai, Kolkata, Bangalore and Chennai.

IPO Details

Particulars	Details
IPO Date	8 to 10 September 2026
Allotment	Fri, 11 September 2026
Listing Date	Wed, 16 September 2026 (tentative)
Face Value	Rs 2 per share
Price Band	Rs 601 to Rs 632
Lot Size	23 Shares
Issue Type	Bookbuilding IPO
Sale Type	Fresh Issue cum Offer for Sale
Total Issue Size	1,67,04,750 shares (agg. up to Rs 1,056 Cr)
Fresh Issue	47,46,835 shares (agg. up to Rs 300 Cr)
Offer for Sale	1,19,57,915 shares (agg. up to Rs 756 Cr)
Investor Reservation	QIB: not more than 50%; Retail: not less than 35%; NII (HNI): not less than 15% of the net offer
Shareholding Pre-Issue	7,44,40,000 shares
Shareholding Post-Issue	7,91,86,835 shares
Listing Exchange	BSE, NSE

(Compiled from the RHP/DRHP and market updates)

Industry Context

• The India power transformer market was valued at roughly USD 2.3 to 3.25 billion in 2025-26 and is projected to grow at a CAGR of around 7 to 9 percent, reaching an estimated USD 5.6 to 8 billion by the early 2030s, according to multiple industry research reports.
• India's peak power demand has climbed from about 130 GW in 2014 to 243 GW in 2024 and is projected to exceed 400 GW by 2030, directly driving demand for transmission and distribution transformer capacity.
• Grid modernisation programmes such as the Revamped Distribution Sector Scheme (RDSS), along with rapid renewable energy capacity addition, are pushing utilities to place record transformer orders, particularly for high-capacity and specialised units.
• Demand is especially concentrated in states such as Gujarat, Maharashtra and Tamil Nadu, where transmission upgrade and renewable evacuation projects are accelerating.
• Volatility in CRGO steel and copper prices, the key raw materials for transformers, is a recurring industry-wide margin risk that is partly offset by material-efficiency mandates and domestic manufacturing incentives.

Business Strengths

Here are the key strengths investors evaluating the Kanohar Electricals IPO should weigh:

• Niche technical certifications, including short-circuit testing for 500 MVA, 400 kV transformers and RDSO approval for Scott transformers used by Indian Railways, that limit competition to a handful of manufacturers.
• A diversified two-segment model spanning transformer manufacturing and EPC services, giving exposure to both product sales and turnkey project execution.
• Sharp FY26 growth, with revenue up 45 percent and profit after tax up 99 percent over FY25, alongside strong return ratios of ROE at 42.12 percent and ROCE at 70.13 percent.
• Low borrowings, with a debt-to-equity ratio of just 0.10 as of FY26, providing balance sheet headroom for further capacity expansion.

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Business Risks

Alongside these strengths, the Kanohar Electricals IPO also carries the following business risks:

• A large majority of the issue, Rs 755.74 crore of the Rs 1,055.74 crore total, is an offer for sale by the promoter family trust, meaning most proceeds do not go to the company itself.
• Transformer manufacturing is raw material intensive, and prices of CRGO steel and copper can be volatile, which can pressure margins.
• The EPC business is order-book and tender dependent, exposing revenue to lumpiness and project execution or timeline risk.
• The issue is priced at a pre-issue PE of around 36.26 times, rising to about 38.58 times post-issue, which is a full valuation for a capital goods and EPC business.

Financial Performance

The Kanohar Electricals IPO comes after a sharp improvement in financial performance. The company's revenue increased by around 45 percent and profit after tax rose by around 99 percent between the year ended 31 March 2025 and 31 March 2026.

Kanohar Electricals Ltd. – Financials (Rs in Lakh)

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
Revenue from Operations	66,286.00	45,730.00	28,112.00
EBITDA	18,042.00	9,339.00	3,107.00
EBITDA Margin (%)	27.59%	20.73%	11.05%
Profit After Tax (PAT)	12,973.00	6,512.00	1,776.00
Debt-to-Equity Ratio	0.10	0.13	0.24 (computed)
Return on Capital Employed (ROCE) (%)	70.13%	47.61%	Not separately disclosed
Return on Equity (ROE) (%)	42.12%	30.92%	Not separately disclosed

Amounts in Rs Lakh unless stated otherwise, compiled from the Kanohar Electricals IPO RHP. FY2024 debt-to-equity is computed from disclosed total borrowings and net worth; ROCE and ROE for FY2024 were not separately disclosed in the available RHP data.

Key Ratios and Metrics

The table below summarises the key ratios and metrics relevant to the Kanohar Electricals IPO as of the latest reported period.

KPI (Mar 31, 2026)	Value
Return on Equity (ROE)	42.12%
Return on Capital Employed (ROCE)	70.13%
Debt-to-Equity Ratio	0.10
Return on Net Worth (RoNW)	34.80%
PAT Margin	19.57%
EBITDA Margin	27.59%
Net Asset Value (NAV per share)	Rs 50.09
Price to Book Value	12.62

Objects of the Offer

The company proposes to utilise the net proceeds from the Kanohar Electricals IPO towards the following objects.

• Funding capital expenditure requirements, including purchase of machinery and equipment for the Gangol manufacturing facility, backward integration, civil construction, solar power plants and electric vehicles for material handling (Rs 64.18 Cr)
• Funding incremental working capital requirements of the company (Rs 155.00 Cr)
• General corporate purposes

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Conclusion

The Kanohar Electricals IPO reflects a company with niche technical certifications in transformer manufacturing, a diversified transformer-plus-EPC model, and sharp FY26 growth in both revenue and profit, backed by strong return ratios and low borrowings.

However, the large offer for sale component, raw material price sensitivity, order-book dependent EPC revenue, and a fairly full valuation are factors that could affect the investment case for the Kanohar Electricals IPO.

Overall, investors weighing the Kanohar Electricals IPO should evaluate the company's business model, financial performance, industry outlook, competitive positioning, valuation and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.

Univest does not publish grey market premium figures. Grey market premium is an unofficial and unregulated indicator collected informally outside the stock exchanges. It is not published, verified or endorsed by SEBI, NSE or BSE, can vary widely between trackers, and is not always accurate.

FAQs

What are the Kanohar Electricals IPO dates?

Ans. The Kanohar Electricals IPO will open for subscription on 8 September 2026 and close on 10 September 2026. The allotment is expected to be finalised on 11 September 2026, with the shares proposed to list on BSE and NSE around 16 September 2026.

What is the issue price and minimum investment for the Kanohar Electricals IPO?

Ans. The Kanohar Electricals IPO price band is Rs 601 to Rs 632 per share, with a lot size of 23 shares. Retail investors must apply for a minimum of 23 shares, requiring an investment of Rs 14,536 at the upper price band.

What does Kanohar Electricals Limited do?

Ans. Incorporated in 1972, Kanohar Electricals manufactures transformers for power transmission, railways, renewable energy and power distribution, and also undertakes EPC projects for substations and transmission lines.

How will Kanohar Electricals use the IPO proceeds?

Ans. The net proceeds from the fresh issue will fund capital expenditure at the Gangol manufacturing facility, incremental working capital requirements, and general corporate purposes.

What are the key strengths of Kanohar Electricals Limited?

Ans. Key strengths include niche transformer testing and RDSO certifications, a diversified transformer-plus-EPC business model, sharp FY26 revenue and profit growth, and strong return ratios with low borrowings.

What are the major risks associated with the Kanohar Electricals IPO?

Ans. The IPO includes a large offer for sale by the promoter family trust, and the business is exposed to raw material price volatility, order-book dependent EPC revenue, and a fairly full valuation at listing.

Who are the lead managers and registrar for the Kanohar Electricals IPO?

Ans. Nuvama Wealth Management Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the Kanohar Electricals IPO, while MUFG Intime India Pvt. Ltd. is the registrar to the issue.

Is the Kanohar Electricals IPO a good investment?

Ans. Kanohar Electricals offers exposure to a niche, certified transformer and EPC business with strong FY26 growth and return ratios, but the large offer for sale and full valuation warrant a careful, selective approach. Investors should review the RHP and assess their own risk profile before applying.