Kanohar Electricals shares made a positive debut on Wednesday, listing at an 8.4 per cent premium at ₹685.50 on the NSE compared with the IPO price of ₹632.
On the BSE, Kanohar Electricals shares started trading at a 6.34 per cent premium at ₹672.05 and later zoomed to ₹783.95, 24 per cent above the offer price.
It ended at ₹751.50 on the NSE and at ₹751.30 on the BSE, respresenting 19 per cent listing gains.
Congratulations to Kanohar Electricals Limited on getting listed on NSE today.
Kanohar Electricals Limited is engaged in the manufacturing of transformers in India. The Company caters to industries such as power transmission, railways, renewable energy and power distribution.
The…— NSE India (@NSEIndia)
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said the company’s fundamentals, including 42 per cent ROE, 70 per cent ROCE, 0.10x debt-to-equity and a ₹1,818-crore order book, support the brokerage’s original subscribe view.
Given the softer-than-expected listing, Nyati said some profit booking may occur, with a stop loss of ₹650.
According to Dr Ravi Singh, Chief Research Officer at Master Capital Services Ltd, Kanohar Electricals made a positive debut.
Singh advised investors may focus on order-book execution, revenue growth and the company’s ability to maintain profitability amid expansion. Long-term investors may track capacity expansion, order-book growth and its presence in the transformer and power equipment market. He added that upcoming results could provide visibility on order inflows, capacity utilisation, margin stability and cash-flow generation.
IPO details
The company’s ₹1,056-crore initial share sale was subscribed 90.59 times overall.
The QIB portion received 215.37 times subscription, while the non-institutional investor category was subscribed 87.74 times. The retail investors’ portion received 20.51 times subscription.
Kanohar Electricals had fixed a price band of ₹601-632 per share for its IPO.
The ₹1,056-crore IPO comprised a fresh issue of shares worth up to ₹300 crore and an offer-for-sale of up to 1.2 crore shares, valued at ₹756 crore at the higher end of the price band, by promoter K Sons Family Trust.
Kanohar Electricals raised ₹317 crore from anchor investors.
Use of funds
The company plans to use ₹64.1 crore from the fresh issue towards capital expenditure requirements, including purchasing machinery and equipment for its Gangol manufacturing facility, expanding and automating 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, with the remaining proceeds earmarked for general corporate purposes.