Kanohar Electricals IPO: Transformer Maker Takes ₹1,055.74-Crore Issue to Market
₹601–₹632 price band; ₹300 crore fresh issue to fund capacity expansion, working capital and operational upgrades
Abhishek Singhal, Director; Vivek Singhal, Whole-Time Director; and Ria Krishnan, Senior Associate, Nuvama Wealth Management Limited, were in Ahmedabad to announce details of Kanohar Electricals Limited’s maiden initial public offering (IPO), which opens for subscription on September 8, 2026.
Kanohar Electricals has fixed the IPO price band at ₹601–₹632 per equity share. The issue size is ₹1,055.74 crore, comprising a ₹300-crore fresh issue and an Offer for Sale (OFS) of ₹755.74 crore by promoter K Sons Family Trust. The IPO will close on September 10, with listing proposed on the NSE and BSE on September 16, 2026.
Fresh issue to strengthen manufacturing capacity
The company plans to use ₹64.1 crore from the fresh issue for capital expenditure, including purchase of new machinery and equipment at its Gangol manufacturing facility, increasing transformer manufacturing capacity, expanding and automating backward-integration facilities and improving operational efficiency.
The company will also invest in civil construction and interior development of an office building at Gangol, while sustainability initiatives include setting up solar power plants at manufacturing facilities and purchasing electric vehicles for handling and movement within the facility.
Another ₹155 crore has been earmarked for incremental working-capital requirements and general corporate purposes.
Rare certifications give Kanohar a technical edge
One of Kanohar’s key differentiators is its technical certification in high-capacity transformers.
As of March 31, 2026, the company was one of only five companies in India with short-circuit test certification for 500 MVA, 400 kV transformers, which are used in the power transmission industry. It has conducted short-circuit testing across more than 200 ratings.
The company is also one of four manufacturers in India certified by the Research Designs and Standards Organisation (RDSO) to manufacture 100 MVA, 132 kV Scott transformers. It is further among just two Indian manufacturers certified to manufacture 100 MVA, 220 kV Scott transformers, catering to Indian Railways’ electrification requirements.
Power, railways and renewable energy drive business
Kanohar Electricals operates through two principal segments — transformer manufacturing and EPC.
Its transformer business has more than 40 years of experience and manufactures five types of transformers with customised technical specifications for sectors including power transmission, railways, renewable energy and power distribution.
Its EPC business undertakes engineering, procurement and construction projects in power transmission and distribution, including turnkey substations and transmission lines. The company handles air-insulated and gas-insulated substations, bay augmentation and transmission-line installation across 132 kV, 220 kV and 400 kV classes.
Revenue nearly doubles in two years
Kanohar Electricals has reported a sharp improvement in its financial performance.
Revenue from operations rose to ₹653.83 crore in FY26, compared with ₹276.6 crore in FY24, while net profit increased to ₹129.7 crore from ₹17.7 crore over the same period.
Your IPO analysis also highlights ROCE of 70.13%, ROE of 42.12% and 99.2% year-on-year growth in PAT in FY26, along with a low debt-to-equity ratio of 0.10.
Strong profitability comes with a premium valuation
The company’s profitability and technical capabilities make the issue attractive from a growth perspective. However, valuation remains a key consideration.
At the upper price band, the IPO commands a post-issue P/E of around 38.58 times, while the valuation appears substantially higher when viewed against FY25 earnings. This leaves limited room for disappointment if growth or project execution falls short of expectations.
Another consideration is the large OFS component. At around 72% of the total issue, most of the IPO represents shares being sold by the promoter rather than fresh capital being raised by the company.
Government-linked orders remain an important factor
Kanohar’s exposure to power transmission, distribution and railways places it in sectors benefiting from India’s continuing investment in energy infrastructure and electrification.
At the same time, its business remains significantly dependent on large institutional and government-sector orders. The timing of order awards, execution schedules and working-capital requirements could therefore influence its financial performance.
Management sees opportunity in India’s energy infrastructure expansion
Abhishek Singhal, Director, Kanohar Electricals, can be positioned around the company’s growth opportunity in India’s expanding power infrastructure and its differentiated transformer capabilities.
“India’s energy infrastructure is undergoing a significant transformation, creating opportunities across power transmission, distribution, railways and renewable energy. Our technical capabilities, manufacturing expertise and backward-integrated facilities position us to participate in this growing demand.”
Vivek Singhal, Whole-Time Director, can focus on capacity expansion and operational efficiency:
“The proposed investments in our Gangol facility are aimed at expanding transformer capacity, strengthening backward integration and improving operational efficiency, enabling us to meet the evolving requirements of our customers.”
These two are suggested quote formulations based on the company’s stated strategy and should be matched with the executives’ actual statements before publication. The attached release itself does not provide verbatim management quotations.
IPO at a glance
| Particular | Details |
| IPO Size | ₹1,055.74 crore |
| Fresh Issue | ₹300 crore |
| OFS | ₹755.74 crore |
| Price Band | ₹601–₹632 |
| Face Value | ₹2 |
| Lot Size | 23 shares |
| Minimum Investment | ₹14,536 at upper band |
| IPO Opens | September 8, 2026 |
| IPO Closes | September 10, 2026 |
| Expected Listing | September 16, 2026 |
| Fresh Issue Utilisation | Capacity expansion, machinery, working capital & general corporate purposes |
| Proposed Exchanges | NSE & BSE |
| Book Running Lead Managers | Nuvama Wealth Management & IIFL Capital Services |
| Registrar | MUFG Intime India |
Disclaimer: This article is for information purpose only and is not investment advice. Please read the IPO documents carefully before investing.
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