Summary of this article
Kanohar Electricals IPO opens September 8 and closes September 10
The Rs 1,056 crore IPO has a price band of Rs 601-632
GMP indicates a potential 31 per cent listing gain
The initial public offering (IPO) of Kanohar Electricals Limited opened for subscription on September 8, 2026, and will remain open till September 10, 2026. The Rs 1,055.74 crore issue is a mix of a fresh issue of 4.75 million shares worth Rs 300 crore and an offer for sale of 11.96 million shares worth Rs 755.74 crore by existing shareholders.
The transformer manufacturer has fixed a price band of Rs 601 to Rs 632 per share. The lot size is 23 shares, which puts the minimum investment for a retail applicant at Rs 14,536 at the upper end of the band.
Of the net offer, not more than 50 per cent has been reserved for qualified institutional buyers (QIBs), not less than 35 per cent for retail investors, and not less than 15 per cent for non-institutional investors (NIIs).
Nuvama Wealth Management and IIFL Capital Services are managing the issue as book running lead managers, while MUFG Intime India is the registrar.
Kanohar Electricals IPO GMP Today
Shares of Kanohar Electricals were commanding a grey market premium (GMP) of Rs 196 as of 8:02 AM on September 8, according to websites that track such trades. Added to the upper end of the price band, this puts the estimated listing price at Rs 828 apiece, an implied gain of about 31 per cent over the issue price.
GMP is an unofficial indicator based on trades in the unregulated grey market and has no recognition from Securities and Exchange Board of India (Sebi) or stock exchanges. It can change sharply through the day and during the IPO subscription period, often driven more by market sentiment than the company’s fundamentals. Investors should therefore treat GMP only as a reference point and focus on the company’s financial performance, valuation and business prospects before making an investment decision.
Kanohar Electricals' Business
Incorporated in 1972, Kanohar Electricals manufactures transformers and serves the power transmission, railways, renewable energy and power distribution sectors. The company runs two business lines, including transformer manufacturing, and engineering, procurement and construction. It is one of four manufacturers in the country certified by the Research Designs and Standards Organisation, the R&D wing of Indian Railways, to make 100 MVA 132 kV Scott transformers.
Its two plants, at Rithani and Gangol in Meerut, Uttar Pradesh, had a combined transformer manufacturing capacity of 19,200 MVA as of March 31, 2026. The company runs five regional offices, in Delhi, Mumbai, Kolkata, Bangalore and Chennai, and employs more than 526 people.
Kanohar Electricals Financial Performance And Valuation
Kanohar Electricals reported total income of Rs 662.86 crore in FY26, up from Rs 457.30 crore in FY25 and Rs 281.12 crore in FY24. Profit after tax (PAT) nearly doubled to Rs 129.73 crore from Rs 65.12 crore in FY25, compared with Rs 17.76 crore in FY24.
Earnings before interest, tax, depreciation, and Amortisation (Ebitda) rose to Rs 180.42 crore in FY26 from Rs 93.39 crore in FY25 and Rs 31.07 crore in FY24. Net worth stood at Rs 372.84 crore, against Rs 243.13 crore a year earlier and Rs 178.12 crore in FY24. Borrowings remained low at Rs 39.04 crore, compared with Rs 32.27 crore in FY25 and Rs 42.08 crore in FY24.
Return ratios also improved, with return on equity (ROE) rising to 42.12 per cent from 30.92 per cent and return on capital employed (ROCE) to 70.13 per cent from 47.61 per cent. PAT margin expanded to 19.57 per cent from 14.24 per cent, while Ebitda margin rose to 27.59 per cent from 20.73 per cent. The debt-to-equity (D-E) ratio also eased to 0.10 from 0.13.
At the upper price band, the IPO values Kanohar Electricals at 38.58 times its post-issue diluted earnings per share (EPS) of Rs 16.38. The company's market capitalisation will rise to Rs 5,004.61 crore post issue, from Rs 4,705 crore pre issue.
