Kanohar Electricals IPO opens: Should you subscribe? Check price band, fresh GMP, reviews & more

Kanohar Electricals is set to launch its initial public offering (IPO) for subscription on Tuesday, September 08. The transformer manufacturer shall be selling its shares in the range of Rs 601-632 and investors can apply for a minimum of 23 equity shares and its multiples thereafter. The issue will close for subscription on Thursday, September 10.

Kanohar Electricals is looking to raise Rs 1,056 crore via its IPO, which includes a fresh sale of Rs 300 crore and an offer-for-sale (OFS) of up to 1,19,57,915 shares worth Rs 756 crore by promoter entity. The net proceeds from fresh sale shall be utilized towards funding capital expenditure requirements, working capital needs and general corporate purposes.

Incorporated in 1972, Meerut-based Kanohar Electricals is engaged in the manufacturing of transformers in India. It caters to industries such as power transmission, railways, renewable energy and power distribution. Kanohar Electricals operates two manufacturing facilities in Rithani and Gangol, Meerut and has two business segments.

Ahead of its IPO, Kanohar Electricals raised Rs 316.72 crore from 42 anchor investors as it allocated 50,11,424 shares for Rs 632 apeice. Its anchor book included names like Mirae Asset MF, Tata MF, Motilal Oswal MF, Titanium Equity Fund, HSBC MF, 360 One Fund, VQ Fastercap Fund, Axis Life Insurance, Union MF, Trust MF, Bharti Axa Life Insurance, India Capital Fund, Societe Generale and more.

Kanohar Electricals reported a net profit at Rs 129.73 crore with a revenue of Rs 662.86 crore for the financial year ended on March 31, 2026. Its net profit stood at Rs 65.12 crore with a revenue of Rs 457.30  crore for the financial year 2024-25. At current valuations, it shall command a market capitalization close to Rs 5,005 crore.

Kanohar Electricals has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of reservation. Retail investors will have 35 per cent of the allocation in the IPO. Last heard, it was commanding a grey market premium of Rs 195-205 apiece, suggesting nearly 31-32 per cent listing gains for the investors.

Nuvama Wealth Management Ltd and IIFL Capital Services are the book running lead managers for the Kanohar Electricals IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on September 16, 2026. Here's what a host of brokerage firms say about the IPO of Kanohar Electricals:

Anand Rathi Share & Stock Brokers
Rating: Subscribe for long-term
Kanohas integrated manufacturing capabilities and presence across multiple categories, benefitting from increasing investments in India’s transmission, distribution and renewable energy infrastructure.  It offers exposure to the structural growth in India’s power transmission and distribution sector, supported by grid investments, RE integration and demand for high-voltage transformers, said Anand Rathi.

The high customer concentration, dependence on the Transformer Manufacturing Business and government/transmission utility orders warrant a measured valuation outlook. The IPO is valued at 38.6 times FY26 P/E and 28 times FY26 EV/EBITDA. While the valuation is at a premium to peers, but is supported by Kanohar’s superior  growth and profitability," it added with a 'subscribe for long-term' rating.

SBI Securities
Rating: Subscribe
Kanohar Electricals delivered an impressive revenue, EBITDA and PAT CAGR of 53.7 per cent, 141 per cent and 170.3 per cent during FY24-FY26, while maintaining healthy RoCE and RoE of 45.3 per cent and 34.8 per cent, respectively. Its strong execution capabilities are reflected in its 2.8 time order book-to-sales ratio, with the order book expanding 3 times to Rs 1,818 crore in FY26, said SBI Securities.

"Operational efficiency has also improved materially, with inventory days reducing from 110 in FY24 to 64 in FY26. The issue is valued at 38.6 times FY26 post-issue P/E, which appears reasonable given its strong growth trajectory, niche certifications, robust order pipeline, and favorable industry tailwinds. We recommend 'subscribe' to the issue," it added.

Swastika Investmart
Rating: Subscribe
Kanohar's integrated transformer manufacturing and EPC capabilities support participation in large power projects. However, 83 per cent of FY26 revenue comes from transformers, creating concentration risk. ROE of 42.1 per cent, ROCE 70.1 per cent and low debt/equity of 0.10 times indicate strong financial health, said Swastika Investmart.

"A Rs 1,818 crore order book provides healthy revenue visibility. At 34.5–36.3 times FY26 EPS, valuation is reasonable versus peers, with IPO proceeds supporting expansion. Long-term investors can consider the IPO for its strong fundamentals, while it may also offer listing-gain potential, subject to market conditions," it added.

KC Securities
Rating: Subscribe for long-term
Kanohar Electricals offers a credible long-term play on India’s expanding power transmission and distribution capex cycle. Its strong FY24–FY26 financial performance, reflecting strong operating leverage and improving profitability with sizable order book and presence across transmission, railways and renewable energy applications provide healthy growth visibility, said KC Securities.

"It is having In-house manufacturing and integrated capabilities can support better quality control, execution efficiency and scalability as demand for transformers increases Rising investments in power transmission & distribution, renewable energy integration, railway electrification and grid modernization are expected to drive sustained demand for transformers," it said with a 'subscribe for long-term' tag.

Ventura Securities
Rating: Subscribe
Kanohar Electricals has a strong presence across power transmission, railway electrification, renewable energy and distribution. It manufactures power, traction and distribution transformers and shunt reactors, besides executing EPC projects for substations and transmission lines. Financial performance has also improved significantly in the last three years, said Ventura with a 'subscribe' rating.