Kanohar Electricals IPO opens at ₹1,055.74 crore

Kanohar Electricals Limited opened its initial public offering (IPO) for subscription on September 8, 2026, as the transformer manufacturer looks to raise ₹1,055.74 crore through the public issue. The IPO will remain open until September 10, with shares proposed to be listed on the NSE and BSE on September 16, subject to the final schedule.

The book-built issue has a price band of ₹601 to ₹632 per share and a lot size of 23 shares. At the upper end of the price band, a retail investor would need ₹14,536 to apply for one lot. The issue comprises a fresh issue of shares worth ₹300 crore and an offer for sale of ₹755.74 crore by K Sons Family Trust, the promoter selling shareholder.

The ₹300 crore raised through the fresh issue will be used mainly to fund the company’s capital expenditure and additional working capital requirements, along with general corporate purposes. The offer for sale component will see existing shares being sold by the promoter trust, meaning that this portion of the IPO will not result in fresh capital coming into the company.

Kanohar Electricals is based in Meerut, Uttar Pradesh, and operates in transformer manufacturing and engineering, procurement and construction activities linked to the power transmission and distribution sector. Its products are used in areas including power transmission, railways, renewable energy and power distribution. The company manufactures transformers with capacities of up to 500 MVA and 500 kV.

The company has also reported strong growth in recent years. According to figures based on its offer documents, revenue increased from ₹281.12 crore in FY24 to ₹457.30 crore in FY25 and ₹662.86 crore in FY26. Profit after tax rose from ₹17.76 crore in FY24 to ₹65.12 crore in FY25 and ₹129.73 crore in FY26.

The IPO comes as demand for power infrastructure continues to create opportunities for transformer manufacturers. Rising electricity demand, expansion of transmission networks, railway electrification and renewable energy projects are among the areas supporting the sector.

However, investors will also need to consider the company’s risks. A large share of its revenue comes from government-related customers, while customer and supplier concentration remain important factors to watch. According to an Economic Times report, around 85% of Kanohar’s FY26 revenue came from government entities.

The IPO is also attracting attention in the grey market, although grey market premiums are unofficial indicators and should not be treated as a guarantee of the listing price.

For investors, the issue offers exposure to a company operating in India’s power equipment and transmission infrastructure segment. The more important test will be whether Kanohar can use the fresh capital to expand capacity, manage working capital and maintain its growth after becoming a listed company.