Uttar Pradesh-based transformer manufacturer Kanohar Electricals is set to make its Dalal Street debut with a maiden public issue worth ₹1,056 crore on September 8, 2026, becoming the third company to launch its IPO on the same day alongside Prasol Chemicals and Glass Wall Systems. The price band for the offer has been fixed at ₹601-632 per share, giving the company a valuation of ₹5,004.6 crore. The three-day public offering will conclude on September 10, 2026, with the company expected to finalise the IPO share allotment by September 11, 2026 and make its market debut on September 16, 2026 on both BSE and NSE. As per latest market reports, the Grey Market Premium (GMP) stands at ₹196 per share, indicating a 31% premium over the upper price band of ₹632, with the indicative listing price at ₹828. However, CNBC TV18 reports that the Grey Market Premium (GMP) is trading 24% higher than the issue price, indicating potentially decent gains for investors on listing day.
The company has demonstrated strong investor confidence ahead of its public issue, raising ₹317 crore from anchor investors by allocating 50.11 lakh equity shares at ₹632 per share to anchor investors comprising 42 leading financial institutions. Notable participants in the anchor round include ICICI Prudential Mutual Fund, Ashoka Whiteoak Emerging Markets Equity Fund, Allianz Global Investors Fund, HSBC Global Investment Funds, HDFC Life Insurance Company, Kotak Mutual Fund, Mirae Asset Mutual Fund and Motilal Oswal Mutual Fund. The anchor book attracted participation from 42 leading financial institutions from India and overseas, with equity-oriented schemes including ICICI Prudential Multi Cap Fund, Kotak Infrastructure & Economic Reform Fund and Mirae Asset Small Cap Fund also participating. This robust anchor participation indicates institutional confidence in the company's growth prospects and market positioning.
The company is raising up to ₹300 crore through a fresh issue of 47.47 lakh shares, while promoter entity K Sons Family Trust will sell 1.2 crore shares worth ₹756 crore through an offer for sale (OFS) at the higher end of the price band. Investors can bid for a minimum of 23 equity shares, with subsequent bids to be made in multiples of 23 shares. Accordingly, the minimum investment for retail investors in the public issue would be ₹14,536, while the maximum investment would be ₹1,88,968. The IPO is structured as a book-built issue with Nuvama Wealth Management Limited and IIFL Capital Services Limited serving as the book-running lead managers, while MUFG Intime India Private Limited serves as the registrar. The lot size is set at 23 shares with the issue opening on September 8, 2026 and closing on September 10, 2026. The issue has reserved not more than 50% of shares for qualified institutional buyers (QIB), not less than 15% for non-institutional institutional investors (NII), and not less than 35% for retail investors.
The company currently operates two manufacturing facilities at Rithani and Gangol in Uttar Pradesh, with a total transformer manufacturing capacity of 19,200 MVA as of March 31, 2026. Its order book stood at ₹1,818.3 crore as of March 2026. The transformer and EPC businesses contributed 83 percent and 16 percent, respectively, to the company's topline in FY26. The company is one of the four manufacturers in India accredited by the Research Designs and Standards Organisation (RDSO), which is the research and development organisation of Indian Railways for manufacturing 100 MVA 132 kV Scott transformers. The company operates through five regional offices in Delhi NCR, Mumbai, Kolkata, Bengaluru, and Chennai, with a manpower strength of over 526 employees as of September 30, 2025.
Profit for the fiscal year ended March 2026 nearly doubled to ₹129.7 crore from ₹65 crore in the previous year, while revenue increased 45.1 percent to ₹653.83 crore from ₹276.6 crore in FY24. According to Anand Rathi, revenue from operations grew at a 53.7% CAGR over FY24-FY26, while EBITDA increased at a 141.0% CAGR during the same period. The company's order book stood at ₹1,818.3 crore as of March 2026, providing revenue visibility. Of the net proceeds from the fresh issue, ₹64.1 crore will be utilised to purchase new machinery and equipment, undertake civil construction and interior development of an office building at the Gangol manufacturing facility, set up solar power plants at its manufacturing facilities, and purchase electric trucks and forklifts. A further ₹155 crore will be utilised to meet incremental working capital requirements, while the remaining proceeds will be used for general corporate purposes. The company's financial metrics show assets of ₹476.26 crore as of September 30, 2025, compared to ₹432.07 crore in the previous year. Strong financial metrics include ROE of 42.1%, ROCE of 70.1% and a low debt-to-equity ratio of 0.10x.
According to the CARE Report, Kanohar Electricals is one of the leading domestic transformer manufacturers by revenue in fiscal 2026 and caters to sectors including power transmission, railways, renewable energy and power distribution. The company operates through two segments -- transformer manufacturing and Engineering, Procurement and Construction (EPC). Its EPC business includes turnkey projects for substations and transmission lines, as well as the installation of air-insulated and gas-insulated substations, bay augmentation and transmission lines. The company has over 40 years of experience in its Transformer Manufacturing Business and manufactures five different types of transformers with customized technical specifications to address the energy needs of industries including power transmission, railways, renewable energy and power distribution. Anand Rathi has recommended a "subscribe – long term" rating for the issue, noting that the company's integrated manufacturing capabilities and presence across multiple transformer categories position it to benefit from investments in India's transmission, distribution and renewable energy infrastructure. However, the brokerage flagged high customer concentration, dependence on the transformer manufacturing business and government and transmission utility orders as factors warranting a measured valuation outlook. At the upper price band, Kanohar Electricals is valued at 38.6 times FY26 P/E and 28.0 times FY26 EV/EBITDA, implying a post-issue market capitalisation of ₹5,005 crore.
