IPO Overview
Incorporated in 1972, Kanohar Electricals Limited is a major transformer manufacturer within the heavy electrical equipment industry, carrying over 53 years of industrial manufacturing experience. The company’s business is divided into two segments: Transformer Manufacturing and Engineering, Procurement and Construction (EPC). The transformer business is the core revenue driver, contributing 83.43% of FY2026 revenue, while EPC accounted for 16.44%. The company manufactures power, traction, Scott and distribution transformers, along with shunt reactors, serving power transmission, railways, renewable energy, and power distribution applications. The company operates two manufacturing facilities in Rithani and Gangol, Meerut, Uttar Pradesh, with an aggregate transformer manufacturing capacity of 19,200 MVA as on March 31, 2026, and has five regional offices located in NCT of Delhi, Mumbai, Kolkata, Bangalore, and Chennai, with a team of over 526 employees.
The Kanohar Electricals IPO is a 100% book-built mainboard issue worth up to ₹1,056 crore, comprising a fresh issue of ₹300 crore and an offer for sale (OFS) of 1.19 crore equity shares worth up to ₹756 crore, with a face value of ₹2 per share. The price band is set between ₹601 to ₹632 per share and the lot size is 23 shares, with a minimum investment of ₹14,536 for retail investors. The IPO opens on Tuesday, September 8, 2026 and closes on Thursday, September 10, 2026, with shares proposed to be listed on BSE and NSE on September 16, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 7 September 2026 |
| IPO Open Date | 8 September 2026 |
| IPO Close Date | 10 September 2026 |
| Allotment Date | 11 September 2026 (Expected) |
| Refund Initiation | 15 September 2026 |
| Credit to Demat | 15 September 2026 |
| Listing Date | 16 September 2026 (Tentative) |
| Price Band | ₹601 – ₹632 per share |
| Face Value | ₹2 per share |
| Lot Size | 23 shares |
| Minimum Investment (Retail) | ₹14,536 (1 lot = 23 shares) |
| Issue Size | ₹1,055.74 crore |
| Fresh Issue | 47.47 lakh shares (₹300 crore) |
| Offer For Sale (OFS) | 1,19,57,915 shares (₹755.74 crore) |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
The OFS shares are being sold by K Sons Family Trust, which is a promoter group entity. The OFS represents 71.6% of the total IPO proceeds — meaning the company receives only the fresh issue money. Promoter holding will fall from 99.72% to 78.64% post-IPO, though control remains with the promoter group after listing.
Objects of the Issue (Fund Utilization)
The company will only receive proceeds from the fresh issue of ₹300 crore. The net proceeds from the fresh issue will be utilized for: funding capital expenditure requirements towards purchase of new machinery, civil construction, and setting up a new solar power plant — ₹64.18 crore; and funding incremental working capital requirements of the company — ₹155 crore. The remainder will be used for general corporate purposes.
- Capital expenditure — purchase of new machinery, civil construction & solar power plant setup at Gangol facility — ₹64.18 crore
- Incremental working capital requirements — ₹155 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: Nuvama Wealth Management Ltd. and IIFL Capital Services Limited
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
Promoters & Management
The promoters of Kanohar Electricals Ltd. are the Singhal family, including Dinesh Singhal, Adesh Singhal, Vivek Singhal, Abhishek Singhal, Virat Singhal, Aditya Singhal, and K Sons Family Trust. Before the IPO, the promoters held around 99.72% stake in the company.
The CMD brings more than 40 years of transformer-sector experience. Promoters and promoter-group entities retain control after the offer through K Sons Family Trust and Kanohar International Private Limited.
Company Details
Kanohar Electricals is a transformer manufacturing and power infrastructure company with over five decades of experience. Its Gangol facility can manufacture transformers up to 500 MVA and 400 kV, while backward integration enables in-house production of critical components such as transformer tanks and radiators.
Sectors Served:
- Power Transmission & Distribution
- Indian Railways (Traction & Scott Transformers)
- Renewable Energy
- Power Distribution Utilities
Key Products Manufactured:
- Power Transformers
- Distribution Transformers
- Traction Transformers
- Scott Transformers (100 MVA, 132 kV)
- Shunt Reactors
- EPC Project Execution (turnkey power infrastructure)
Key Capabilities:
- One of only four manufacturers in India certified by the Research Designs and Standards Organisation (RDSO) to make 100 MVA 132 kV Scott transformers — the special transformers used for railway traction — which is a rare and significant entry barrier as that approval takes years to obtain.
- Order book reached ₹1,818.32 crore in FY26, with government-sector clients accounting for ₹1,702.32 crore, or 93.62%, of that book.
Manufacturing Facilities:
- Two plants in Meerut, Uttar Pradesh — Rithani Manufacturing Facility and Gangol Manufacturing Facility — with a combined transformer manufacturing capacity of 19,200 MVA as on March 31, 2026.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹457.30 | ₹65.12 |
| FY26 | ₹662.86 | ₹129.73 |
Key Financial Metrics
- Revenue from operations rose from ₹450.61 crore in FY25 to ₹653.83 crore in FY26 — a surge of ~45% YoY. PAT expanded from ₹65.12 crore in FY25 to ₹129.73 crore in FY26 — a growth of ~99% YoY.
- The company is almost debt-free — total borrowing was ₹39.04 crore against a net worth of ₹372.84 crore as on March 31, 2026.
- Post-issue P/E stands at 38.58x. The industry report projects a 9.3% CAGR for extra-high-voltage transformers from CY24 to CY30.
- RONW: 26.78% (FY25)
Company Strengths
- One of only four RDSO-certified manufacturers of 100 MVA 132 kV Scott transformers in India — a significant and rare entry barrier that takes years of certifications and approvals to achieve.
- Exceptional financial performance — revenue grew ~45% and PAT nearly doubled (99% growth) between FY25 and FY26, reflecting strong demand and execution capacity.
- Almost debt-free balance sheet, with total borrowings of only ₹39.04 crore against a net worth of ₹372.84 crore.
- Massive and well-covered order book of ₹1,818.32 crore in FY26, predominantly from government-sector clients — providing strong revenue visibility.
- Backward integration with in-house production of critical components such as transformer tanks and radiators, reducing external dependency and improving margins.
- Strong sectoral tailwinds from India’s power transmission expansion, railway electrification, and renewable energy integration — all of which require high-quality transformers and reactors.
Key Risks & Challenges
- The valuation is demanding, while most of the issue consists of an OFS that will not provide funds to the company — raising concerns around promoter monetisation at peak cycle valuations.
- Government-sector clients account for 93.62% of the order book — making the business heavily dependent on government capex and public utility spending cycles.
- Raw material price volatility — copper and electrical steel are key inputs, and their price fluctuations can significantly impact margins if not adequately hedged or passed through to customers.
- Delayed customer payments and dependence on infrastructure spending remain important risks for the business going forward.
- Concentration of manufacturing in Meerut, Uttar Pradesh — any disruption at either plant could impact delivery timelines and order fulfilment.
- The substantial fresh issue combined with a meaningful promoter OFS signals both genuine growth-capital needs and a partial monetisation opportunity for the promoter family — investors must weigh the proportion of funds that do not flow back to the business.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
