💡 Overview & Quick Summary
Kanohar Electricals Limited IPO Summary: Kanohar Electricals Limited is launching an Initial Public Offering (IPO) of ₹1,055.74 Crore (Fresh Issue: ₹300.00 Cr; Offer for Sale: ₹755.74 Cr for 1,67,04,750 equity shares of face value ₹2 each) priced in the band of ₹601 to ₹632 per share, open from September 8 to September 10, 2026. Kanohar Electricals is one of India's leading domestic players in transformer manufacturing by revenue in FY26 (Source: CARE Report), operating across Transformer Manufacturing (83.43% of FY26 revenue) and EPC (16.44%). It commands rare technical moats: one of only 5 companies in India certified for short-circuit testing of 500 MVA 400 kV transformers (tested >200 ratings), and one of only 4 and 2 RDSO-certified manufacturers for 100 MVA 132 kV and 220 kV Scott transformers for Indian Railways electrification. Net fresh issue proceeds fund Gangol facility capex (₹64.18 Cr) and working capital (₹155 Cr). With FY26 Total Income up 45.0% YoY to ₹662.86 Cr, PAT up 99.2% YoY to ₹129.73 Cr, EBITDA margins expanding from 20.42% to 27.22%, and RoNW reaching 34.80%, Sushil Finance recommends Subscribe.
1. IPO Overview
Kanohar Electricals Limited has opened its Initial Public Offering for subscription from September 8, 2026 to September 10, 2026. The price band has been fixed at ₹601 to ₹632 Per Share with a face value of ₹2 per share. The minimum bid lot size is 23 shares and in multiples of 23 shares thereafter. The total offer comprises an aggregate issue size of ₹1,055.74 crore across 1,67,04,750 equity shares.
| Issue Parameter |
Details |
| Price Band |
₹601 to 632 Per Share |
| Issue Opens On |
September 8, 2026 |
| Issue Closes On |
September 10, 2026 |
| Lot Size |
23 Shares & in Multiples thereafter |
| Total Issue Size |
₹1,055.74 cr |
| No. of Shares |
1,67,04,750 |
| Face Value |
₹2/- |
| Listing |
BSE & NSE |
| Lead Managers |
Nuvama Wealth Management Ltd., IIFL Capital Services Ltd. |
| Registrar |
Kfin Technologies Ltd |
2. Key IPO Details
The public offer consists of a Fresh Issue of equity shares alongside an Offer for Sale (OFS) by the Promoter Selling Shareholder. The offer structure, category-wise reservations, and monetary allocations at the upper price band are detailed below:
Offer Structure
| Issuance |
in Cr. |
| Fresh Issue |
300.00 |
| Offer for Sale |
755.74 |
| Total |
1,055.74 |
Issue Breakup by Investor Category
| Reservation for |
% of Issue |
in Cr. (at upper band) |
| QIB |
50% |
527.87 |
| HNI |
15% |
158.36 |
| RETAIL |
35% |
369.51 |
| TOTAL |
100% |
1,055.74 |
3. Company Overview
Kanohar Electricals Limited is one of the leading domestic players in transformer manufacturing by revenue in Fiscal 2026, catering to high-growth industries such as power transmission, railways, renewable energy, and power distribution (Source: CARE Report).
The Company operates across two primary business segments:
- Transformer Manufacturing (83.43% of FY26 revenue): Designing, manufacturing, and supplying high-voltage power and distribution transformers.
- EPC Segment (16.44% of FY26 revenue): Undertaking turnkey installation of air- and gas-insulated substations, bay augmentation up to 400 kV class, and transmission line installation across 132 kV, 220 kV, and 400 kV.
Its technical credentials are genuinely differentiated:
- 500 MVA 400 kV Short-Circuit Testing: As of March 31, 2026, it is one of only five companies in India with short-circuit test certification for 500 MVA 400 kV transformers (having tested over 200 ratings).
- Indian Railways RDSO Certification (132 kV): One of only four Indian manufacturers RDSO-certified to manufacture 100 MVA 132 kV Scott transformers.
- Indian Railways RDSO Certification (220 kV): One of only two certified for 100 MVA 220 kV Scott transformers.
4. Objects of the Issue
The Offer comprises a fresh issue aggregating up to Rs. 300 crore plus an offer for sale of up to 1,19,57,915 equity shares by the Promoter Selling Shareholder, K Sons Family Trust (aggregating up to Rs. 755.74 crore at the upper price band; OFS proceeds do not accrue to the Company).
Of the fresh issue net proceeds, the funds are earmarked as follows:
- Capital Expenditure (Approximately Rs. 64.18 crore): Purchase of new machinery and equipment at the Gangol Manufacturing Facility to increase transformer capacity, civil construction of an office building, and sustainability initiatives including solar power plants and electric vehicles.
- Working Capital Requirements (Approximately Rs. 155 crore): Funding incremental working capital requirements of the company.
- General Corporate Purposes: The balance (capped at 25% of gross proceeds) will be utilized for general corporate purposes.
This is predominantly a growth-capital issue, with capacity expansion and working capital together accounting for the substantial majority of fresh-issue proceeds, alongside a sizeable promoter monetization via the OFS.
5. Highlights
- Established player in transformer manufacturing: Established player in the transformer manufacturing sector, catering to high-growth industries including power transmission, railways, renewable energy, and power distribution.
- High-barrier short-circuit test capabilities: Successful short-circuit testing of transformers up to 500 MVA 400 kV, enabling the Company to compete for large, high-value contracts across sectors.
- Dual presence across Manufacturing and EPC: Comprehensive presence across both Transformer Manufacturing and EPC Business segments, enabling it to serve a large total addressable market.
- Integrated manufacturing facilities: Integrated, backward-linked manufacturing facilities equipped to deliver high-quality products with in-house technology.
- Proven track record with marquee clients: Track record of executing orders for large and marquee clients, alongside a consistent, improving track record of profitability.
6. Brief Financial Performance & Metrics
*Not Annualized
| Particulars |
2024 (in crores) |
2025 (in crores) |
2026 (in crores) |
| Total Income |
662.86 |
457.30 |
281.12 |
| Total Expenditure |
489.29 |
369.50 |
255.25 |
| EBITDA |
180.42 |
93.39 |
31.07 |
| Profit Before Tax (PBT) |
173.58 |
87.79 |
25.87 |
| Profit After Tax (PAT) |
129.73 |
65.12 |
17.76 |
| E.P.S. (Diluted) (Rs.) |
17.43 |
8.75 |
2.39 |
| RONW (%) |
34.80% |
26.78% |
9.97% |
7. IPO Timeline & Payment Charts
Indicative Time Table
| Tentative Events |
Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
11/9/2026 |
| Initiation of refunds/unblocking ASBA Fund |
15/9/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
15/9/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
16/9/2026 |
Price Chart (@ ₹632) (Retail Category)
| LOT SIZE |
Amount (₹) |
| 23 | 14,536 |
| 46 | 29,072 |
| 69 | 43,608 |
| 92 | 58,144 |
| 115 | 72,680 |
| 138 | 87,216 |
| 161 | 1,01,752 |
| 184 | 1,16,288 |
| 207 | 1,30,824 |
| 230 | 1,45,360 |
| 253 | 1,59,896 |
| 276 | 1,74,432 |
| 299 | 1,88,968 |
HNI Payment Chart
| Category |
No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
322 |
2,03,504 |
| Big HNI |
1,587 |
10,02,984 |
8. Our View / Recommendation
Official Analyst Recommendation: SUBSCRIBE
Sushil Finance Research Stance
Kanohar Electricals merits a Subscribe, anchored in genuinely accelerating growth and a rare technical moat in transformer manufacturing.
Accelerating Financial Growth: Total income grew from Rs. 457.30 crore to Rs. 662.86 crore in FY26 (45.0% YoY), while PAT nearly doubled from Rs. 65.12 crore to Rs. 129.73 crore (99.2% growth), with EBITDA margin expanding sharply from 20.42% to 27.22% and RoNW climbing consistently across all three years: 9.97% → 26.78% → 34.80%. That's a genuinely rare, uninterrupted multi-year improvement in both margins and capital efficiency.
Rare Technical Moat: Its technical positioning is a real moat: one of only five companies in India certified for short-circuit testing of 500 MVA 400 kV transformers, and one of only four (and two, respectively) RDSO-certified manufacturers of 100 MVA 132 kV and 220 kV Scott transformers for Indian Railways electrification — high-barrier certifications competitors can't replicate quickly.
9. Frequently Asked Questions (FAQs)
Q1. What is the business breakdown of Kanohar Electricals Limited?
Kanohar Electricals operates two key business segments: Transformer Manufacturing, which accounts for 83.43% of FY26 revenue, and EPC (Engineering, Procurement, and Construction), which accounts for 16.44% of FY26 revenue, delivering turnkey air- and gas-insulated substations and transmission lines up to 400 kV class.
Q2. What is the issue size and split between Fresh Issue and Offer for Sale (OFS)?
The total issue size is ₹1,055.74 crore (1,67,04,750 shares). This includes a Fresh Issue of ₹300.00 crore and an Offer for Sale of ₹755.74 crore (up to 1,19,57,915 equity shares) by the Promoter Selling Shareholder, K Sons Family Trust.
Q3. How will the Fresh Issue proceeds be utilized?
The company will deploy approximately ₹64.18 crore toward capital expenditure for new machinery and equipment at the Gangol Manufacturing Facility to increase transformer capacity, office civil construction, solar power plants, and electric vehicles; approximately ₹155 crore for incremental working capital; and the balance for general corporate purposes (capped at 25% of gross proceeds).
Q4. What is the minimum investment required for Retail and HNI investors?
For Retail investors, the minimum application is 1 lot (23 shares) requiring ₹14,536 at the upper price band of ₹632. For Small HNI (sHNI), the minimum bid is 322 shares (₹2,03,504), and for Big HNI (bHNI), the minimum bid is 1,587 shares (₹10,02,984).
Q5. Why does Sushil Finance recommend a 'Subscribe' for Kanohar Electricals IPO?
Sushil Finance recommends 'Subscribe' due to Kanohar's accelerating growth (FY26 Total Income up 45.0% YoY, PAT up 99.2% YoY, EBITDA margins rising to 27.22%, and RoNW expanding across three years from 9.97% to 26.78% to 34.80%) and rare technical moats in 500 MVA 400 kV short-circuit certified transformers and RDSO-certified Scott transformers for Indian Railways.
10. Red Herring Prospectus (RHP) Reference
11. Disclaimer
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
