Kanohar Electricals IPO is a book-built issue of ₹1,055.74 crore, comprising a fresh issue of 47.47 lakh shares worth ₹300 crore and an offer for sale (OFS) of 1.20 crore shares aggregating to ₹755.74 crore.
The IPO will open for subscription on September 8, 2026, and close on September 10, 2026. The allotment is expected to be finalised on September 11, with the shares scheduled to list on NSE and BSE on September 16, 2026.
The price band is fixed at ₹601 to ₹632 per share, with a lot size of 23 shares. Retail investors need to invest a minimum of ₹14,536 at the upper price band. Nuvama Wealth Management Ltd. is the book-running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar. Investors can refer to the Kanohar Electricals IPO RHP for detailed information about the issue.
Company Overview
Kanohar Electricals Ltd. is a leading domestic transformer manufacturer, serving key sectors such as power transmission, railways, renewable energy and power distribution. As of March 31, 2026, the company was among only five Indian manufacturers holding short circuit test certification for 500 MVA, 400 kV transformers used in power transmission. It has tested more than 200 transformer ratings, strengthening its ability to participate in large and specialised projects.
The company also has RDSO certification to manufacture 100 MVA, 132 kV Scott transformers and is among just two Indian manufacturers certified for 100 MVA, 220 kV Scott transformers for railway electrification.
Its operations are divided into Transformer Manufacturing and EPC businesses. The EPC division undertakes turnkey projects involving substations and transmission lines up to 400 kV, complementing its transformer manufacturing capabilities. Kanohar Electricals also manufactures GIS bays under a technical collaboration with Taiwan-based CHEM.
Led by Promoter, Chairman and Managing Director Dinesh Singhal, who has over 40 years of industry experience, the company combines manufacturing expertise, backward integration and EPC capabilities to provide integrated solutions for India’s power infrastructure.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 8 to 10 Sep, 2026 |
| Allotment | Fri, Sep 11, 2026 |
| Listing Date | Wed, Sep 16, 2026 |
| Face Value | ₹2 per share |
| Price Band | ₹601 to ₹632 per share |
| Lot Size | 23 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh capital cum OFS |
| Total Issue Size | 1,67,04,750 shares (agg. up to ₹1,056 Cr) |
| Offer for Sale | 1,19,57,915 shares of ₹2 (agg. up to ₹756 Cr) |
| Fresh Issue | 47,46,835 shares (agg. up to ₹300 Cr) |
| Shareholding Pre-Issue | 7,44,40,000 shares |
| Shareholding Post-Issue | 7,91,86,835 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- India’s electricity demand continues to expand, with peak power demand rising from 156 GW in FY16 to around 245 GW in FY26, creating sustained requirements for generation, transmission and distribution infrastructure.
- India’s electricity generation increased from 1,372 BU in FY19 to 1,840 BU in FY26. Rising consumption and expanding infrastructure are supporting demand for transformers and other equipment across the power value chain.
- Renewable energy is becoming increasingly important in India’s power mix. Renewable sources, including solar, wind and hydro, increased their contribution from 19.1% in FY19 to 26.0% in FY26.
- India’s installed power capacity reached 532.7 GW in FY26, compared with 356.1 GW in FY19. With non-fossil sources accounting for 53.2%, continued capacity additions are expected to support equipment demand.
- Government initiatives targeting 500 GW of renewable capacity by 2030, alongside investments in transmission, distribution and battery storage, are expected to strengthen opportunities for power infrastructure companies and transformer manufacturers.
Business Strengths
- Over four decades of transformer manufacturing experience and a strong presence across power transmission, railways, renewable energy and distribution position Kanohar Electricals to address diverse and specialised infrastructure requirements.
- The company’s certification for 500 MVA, 400 kV transformers, along with successful testing of more than 200 ratings, strengthens its eligibility to participate in large and technically demanding power transmission contracts.
- Its integrated Transformer Manufacturing and EPC businesses enable Kanohar Electricals to offer end-to-end solutions, covering transformers, substations and transmission lines, while expanding its addressable market across India’s power infrastructure sector.
- Two manufacturing facilities in Meerut have an aggregate transformer capacity of 19,200 MVA. Backward integration for critical components such as tanks and radiators supports quality control, cost efficiency and faster delivery.
- Kanohar Electricals has demonstrated strong financial growth, with revenue rising from ₹2,766.90 million in FY24 to ₹6,538.39 million in FY26, while EBITDA increased from ₹310.72 million to ₹1,804.16 million.
Business Risks
- Kanohar Electricals derives a substantial share of its revenue from transformer manufacturing. Any decline in transformer demand could negatively impact its revenue, profitability, financial performance and overall business prospects.
- The company depends significantly on high-growth sectors such as power transmission, railways and renewable energy. Any slowdown, economic downturn or adverse industry trend in these sectors could affect its operations.
- Under-utilisation of the Rithani and Gangol manufacturing facilities could adversely affect operating efficiency and financial performance. The company’s reported capacity and utilisation figures also rely on management assumptions and estimates.
- Customer concentration remains a key risk, with the top 10 customers contributing 93.16%, 93.88% and 95.43% of revenue from operations in FY26, FY25 and FY24, respectively, increasing dependence on major customers.
- Kanohar Electricals relies significantly on government-controlled entities and competitive tenders for projects. Failure to qualify for, win or execute contracts profitably, or maintain pre-qualification requirements, could adversely affect business growth.
Financial Performance
Kanohar Electricals Ltd. – Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 6,538.39 | 4,506.12 | 2,766.90 |
| Total Income | 6,628.62 | 4,572.96 | 2,811.21 |
| EBITDA | 1,804.16 | 933.92 | 310.72 |
| Profit / (Loss) After Tax (PAT) | 1,297.33 | 651.18 | 177.55 |
| PAT Margin (%) | 19.57% | 14.24% | 6.32% |
| Return on Capital Employed (ROCE) (%) | 70.13% | 47.61% | 16.69% |
| Return on Equity (%) | 42.12% | 30.92% | 10.49% |
(Source: RHP)
Key Ratios & Metrics
| KPI | Mar 31, 2026 | Mar 31, 2025 |
|---|---|---|
| Return on Equity (ROE) | 42.12% | 30.92% |
| Return on Capital Employed (ROCE) | 70.13% | 47.61% |
| Debt-to-Equity Ratio | 0.10 | 0.13 |
| Return on Net Worth (RoNW) | 34.80% | 26.78% |
| PAT Margin | 19.57% | 14.24% |
| EBITDA Margin | 27.59% | 20.73% |
| Net Asset Value (NAV per share) | ₹50.09 | ₹32.66 |
(Source: RHP)
Objects of the Offer
- The company plans to allocate ₹64.18 crore from the IPO proceeds towards capital expenditure, which will support investments required for its business and operational needs.
- Around ₹155 crore of the net IPO proceeds will be used to meet the company’s incremental working capital requirements and support its ongoing business operations.
- The remaining proceeds will be utilised for general corporate purposes, while the total estimated utilisation of the IPO proceeds stands at ₹219.18 crore.
Conclusion
Kanohar Electricals enters the IPO market with a strong presence in India’s growing power infrastructure sector, backed by specialised transformer capabilities, EPC expertise and improving financial performance. Its rising revenue, profitability and healthy return ratios highlight the company’s recent growth momentum. At the same time, high customer concentration, dependence on key infrastructure sectors and reliance on government-led projects remain important risks for investors to consider. The IPO’s fresh issue could support capital expenditure and working capital needs, while the OFS provides an exit opportunity for existing shareholders. Investors should weigh the company’s growth prospects against these risks before making an investment decision.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.
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