The Kanohar Electricals IPO has officially opened for public subscription. As a prominent player in India’s power equipment and engineering infrastructure space, Meerut-based Kanohar Electricals Limited is seeking to raise ₹1,055.74 crore through this book-built issue.
This comprehensive breakdown covers the IPO structure, timeline, key financial metrics, growth drivers, and major risk factors to help you evaluate this offering.
Issue Overview & Key Dates
| Particular | Details |
| IPO Open Date | September 8, 2026 |
| IPO Close Date | September 10, 2026 |
| Price Band | ₹601 to ₹632 per share |
| Face Value | ₹2 per equity share |
| Lot Size | 23 shares (Min. Investment: ₹14,536 at upper band) |
| Total Issue Size | ₹1,055.74 crore (1.67 crore shares) |
| Fresh Issue | ₹300.00 crore (47.47 lakh shares) |
| Offer for Sale (OFS) | ₹755.74 crore (1.20 crore shares) |
| Basis of Allotment | September 11, 2026 |
| Credit to Demat / Refund | September 15, 2026 |
| Tentative Listing Date | September 16, 2026 (BSE & NSE) |
Business Profile & Technical Capabilities
Incorporated in 1972, Kanohar Electricals Limited operates across two primary business verticals:
- Transformer Manufacturing: Producing high-voltage transformers for state/central power grids, railway networks, and renewable energy integration.
- EPC (Engineering, Procurement, and Construction): Delivering turnkey substation projects and transmission line execution.
Technical Edge & Certifications
- Short-Circuit Certification: One of only five Indian companies holding short-circuit test certification for 500 MVA, 400 kV transformers used in high-voltage power transmission.
- RDSO Approval: Approved by the Research Design and Standards Organisation (RDSO) for Scott transformers, supporting Indian Railways’ electrification projects.
Utilization of Fresh Proceeds
Of the ₹1,055.74 crore issue, only ₹300 crore represents new capital coming into the business. The net proceeds are earmarked for:
- Capital Expenditure (CapEx): Approx. ₹64.18 crore for expanding and upgrading manufacturing facilities (including the Gangol unit).
- Working Capital Requirements: Approx. ₹155 crore to support ongoing execution and raw material inventory.
- General Corporate Purposes: Remaining net proceeds.
Financial Snapshot (FY24 – FY26)
Kanohar Electricals reported strong top-line and bottom-line expansion in FY26:
| Metric (₹ in Crore) | FY25 | FY26 | YoY Growth (%) |
| Total Revenue | ₹457.30 | ₹662.86 | +44.95% |
| EBITDA | ₹93.39 | ₹180.42 | +93.19% |
| Profit After Tax (PAT) | ₹65.12 | ₹129.73 | +99.22% |
| EBITDA Margin | 20.73% | 27.59% | +686 bps |
| PAT Margin | 14.24% | 19.57% | +533 bps |
| Return on Equity (ROE) | — | 42.12% | — |
| ROCE | — | 70.13% | — |
| Debt-to-Equity Ratio | — | 0.10x | Low Leverage |
Key Investment Strengths vs. Risk Factors
Key Strengths
- Power Sector Tailwinds: Positioned to benefit from India’s grid modernization, renewable energy additions, and railway upgrades.
- High Entry Barriers: Stringent testing certifications (400 kV short-circuit tests) create technical barriers for new entrants.
- Robust Return Metrics: Exceptional return ratios (ROE of 42.12% and ROCE of 70.13% in FY26) backed by a low-debt balance sheet.
Primary Risk Factors
- Large OFS Portion: ~72% (₹755.74 crore) of the total IPO size goes to the promoter entity (K. Sons Family Trust), rather than growth capital for the company.
- Government Customer Concentration: Over 85% of FY26 revenues were derived from central and state government contracts, exposing the company to tender delays and longer working capital cycles.
- Cash Flow Divergence: Operating cash flow lagged accounting profits in FY26 due to capital tied up in receivables and EPC project inventory.
- Raw Material Volatility: Margins are vulnerable to global price fluctuations in copper, electrical steel, and transformer oil.
Frequently Asked Questions (FAQs)
Q1: What is the lot size and minimum investment for retail investors?
The lot size is 23 shares. At the upper price band of ₹632, the minimum investment required for one retail lot is ₹14,536.
Q2: Who is the registrar for the Kanohar Electricals IPO?
MUFG Intime India Private Limited is the official registrar. Allotment status can be tracked on their portal using your PAN or Demat details.
Q3: When will the shares list on stock exchanges?
The shares are tentatively scheduled to list on BSE and NSE on Wednesday, September 16, 2026.