The Kanohar Electricals IPO has been oversubscribed 2.70 times as of 17:00 IST on September 8, 2026, receiving bids for 3.15 crore shares against 1.16 crore shares on offer. This represents a significant increase from the earlier reported 1.26 times subscription and demonstrates strong investor interest in the transformer manufacturer. The issue opened for bidding on September 8 and will close on September 10, with the price band fixed between ₹601 and ₹632 per share and minimum investment of 23 equity shares. Retail and non-institutional investors led the bids with 3.30 and 4.87 times subscription respectively, while the qualified institutional buyer segment received 0.03 times bids. The lot size remains 23 shares with the issue comprising a fresh issue of ₹300 crore and an Offer-for-Sale of ₹755.74 crore. At the upper price band of ₹632, retail investors need to invest a minimum of ₹14,536 for one lot.
The grey market premium has surged to around 35%, significantly boosting investor confidence ahead of the listing. This represents a substantial increase from the earlier reported ₹205 GMP and positions Kanohar Electricals as a strong contender in the current IPO market. The premium indicates robust investor sentiment and suggests potential listing gains for subscribers. Glass Wall Systems follows in second position with a GMP of ₹51, while Prasol Chemicals rounds out the list with a premium of ₹55. The three IPOs will close for subscription on September 10 and are scheduled to list on BSE and NSE on September 16.
SBI Securities has recommended subscribing to the issue at the cut-off price, noting that at the upper price band of ₹632, the issue is valued at 38.6x FY26 post-issue P/E, which appears reasonable given its strong growth trajectory and niche certifications. Arihant Capital recommends subscribing for investors with medium-to-long-term horizon, citing the premium valuation supported by strong earnings growth, improving margins, high ROCE and a sizeable order book. Geojit Financial Services had earlier recommended 'Subscribe', highlighting the company's valuation at 38.5x FY26 EPS at the upper price band. The expert consensus suggests the premium valuation is justified by the company's strong fundamentals and growth prospects.
The company plans to utilize ₹64.18 crore from fresh issue proceeds for capital expenditure requirements, including purchase of plant and machinery for its Gangol plant to increase transformer manufacturing capacity, expand and automate backward integration facilities, and enhance operational efficiency. Additionally, ₹155 crore will fund incremental working capital requirements, while the balance will be used for general corporate purposes. Ahead of the IPO, Kanohar Electricals raised ₹316.72 crore from anchor investors on September 7, 2026, with the board allotting 50.11 lakh shares at ₹632 each to 42 anchor investors. The offer for sale component consists entirely of sale by K Sons Family Trust, a promoter selling shareholder. Overall, the company plans to utilize approximately ₹219.18 crore from the issue proceeds for general corporate purposes.
As reported by Business Standard, Kanohar Electricals is engaged in the production of transformers in India, catering to industries like transmission, railways, renewable energy and power distribution. The Indian transformer market grew from $3,691.4 million in CY19 to $4,944.9 million in CY25, at a 5% CAGR, and is projected to reach $6,854.2 million by CY30, growing at 6.7% CAGR. The company maintains an order book of ₹1,818.32 crore as of March 31, 2026, weighted toward the government sector, providing revenue visibility for future growth. In FY26, revenue grew 45% to ₹653.84 crore while PAT nearly doubled to ₹129.73 crore. ROE of 42.1% and ROCE of 70.1% indicate strong financial health, while the low debt/equity of 0.10x demonstrates prudent capital management. Transformer Manufacturing remains the key revenue driver, contributing ~83.43% of FY26 revenue, while EPC Business contributed ~16.44%. During FY24-FY26, KEL delivered strong financial growth, with revenue increasing from ₹276.7 crore to ₹653.8 crore and PAT rising from ₹17.8 crore to ₹129.8 crore, driven by robust transformer demand, healthy order inflows, operating leverage and improved execution efficiency.
According to NDTV Profit, Kanohar Electricals offers the highest per-lot potential with ₹4,508 per lot (₹205 GMP × 23 shares), followed by Glass Wall Systems at ₹4,182 per lot (₹51 GMP × 82 shares), and Prasol Chemicals at ₹1,210 per lot (₹55 GMP × 22 shares). The analysis indicates that Kanohar Electricals provides the best combination of premium and lot size, making it the most attractive option for investors seeking maximum listing gains. Grey market premiums are unofficial and subject to market volatility, with investors advised to evaluate business fundamentals before making investment decisions. As per The Economic Times, Nuvama Wealth Management Limited and IIFL Capital Services Limited are the book-running lead managers for the issue, while MUFG Intime India Private Limited is acting as the registrar. Allotment is expected to be finalized on September 11, 2026, with tentative listing date fixed as September 16, 2026 on NSE and BSE.
