Kanohar Electricals IPO will open for public subscription on September 8, 2026, at a price band of ₹601-632 per equity share.
The ₹1,056-crore IPO comprises a fresh issue of shares worth up to ₹300 crore and an offer-for-sale of up to 1.2 crore shares by promoter K Sons Family Trust. At the higher end of the price band, the offer-for-sale is valued at ₹756 crore.
Kanohar Electricals plans to use ₹64.1 crore from the fresh issue towards capital expenditure requirements, including the purchase of machinery and equipment for its Gangol manufacturing facility, expansion and automation of backward integration facilities, civil construction and interior development of an office building, and sustainability initiatives.
Another ₹155 crore will be used to fund incremental working capital requirements, while the remaining proceeds will be earmarked for general corporate purposes.
Nuvama Wealth Management and IIFL Capital Services are the book-running lead managers for the issue, while MUFG Intime India is the registrar.
Growth and valuation
According to Anand Rathi, Kanohar Electricals is an established transformer manufacturer with over 40 years of experience, catering to sectors including power transmission, railways, renewable energy and power distribution.
The brokerage said revenue from operations grew at a 53.7 per cent CAGR over FY24-FY26, while EBITDA increased at a 141.0 per cent CAGR during the same period. The company’s order book stood at ₹18,183 million as of FY26, providing revenue visibility, Anand Rathi said.
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 ₹50,046 million.
Brokerage view
Anand Rathi said 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.
Anand Rathi noted that the valuation is at a premium to Transformers & Rectifiers (India) Limited, which is valued at 32.2 times P/E and 20.8 times EV/EBITDA, but said the premium is supported by Kanohar Electricals’ superior recent growth and profitability profile.
Accordingly, Anand Rathi has recommended a “subscribe – long term” rating for the issue.