Kanohar Electricals IPO sails through on day 1 amid 32% GMP; check reviews

Kanohar Electricals' ₹1,056-crore IPO sailed through within a few hours of opening on Tuesday, September 8, amid a firm trend in the grey market and healthy financials along with attractive valuations. The offer will close for bidding on Thursday, September 10.

 

As of 1 PM, the mainboard offering garnered bids for 15.87 million shares as against 11.69 million shares on offer, resulting in 1.36 times bids, according to data available on the National Stock Exchange (NSE). Retail and non-institutional investors (NIIs) led the bids as their portions were booked 1.82 and 2.08 times, respectively. The qualified institutional buyer (QIB) segment received 0.01 times bids.

 

 

Meanwhile, in the grey market, Kanohar Electricals IPO shares are trading at ₹837, up 32 per cent over the upper band of the IPO.

 

Kanohar Electricals is engaged in the production of transformers in India, catering to industries like transmission, railways, renewable energy and power distribution. The Indian transformer market grew from $3,691.4 million in CY19 to $4,944.9 million in CY25, at a 5 per cent CAGR, and is projected to reach $6,854.2 million by CY30, growing at 6.7 per cent CAGR.

 

Kanohar Electricals IPO: Should you apply?

Master Capital said that Kanohar Electricals is well positioned to benefit from this growth, supported by its over 40 years of experience, certifications that place it among a small group of qualified suppliers for high-voltage and Scott transformers, backward-integrated manufacturing facilities with an installed capacity of 19,200 MVA, and a complementary EPC business that enables it to bid for hybrid, turnkey contracts.

 

"Its order book of ₹18,183.23 million as of Fiscal 2026, weighted toward the government sector, provides revenue visibility for future growth. Investors may consider the IPO as a potential long-term investment opportunity," opined the brokerage.

 

Swastika, too, finds the offer ideal as a long-term and listing candidate. In FY26, revenue grew 45 per cent to ₹653.8 crore while PAT nearly doubled to ₹129.7 crore. Furthermore, ROE of 42.1 per cent, ROCE of 70.1 per cent, and low debt/equity of 0.10x indicate strong financial health.

 

"At ~34.5–36.3x 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," said the brokerage. However, it flagged concentration risk as 83 per cent of FY26 revenue was from transformers. 

Kanohar Electricals IPO details

The offer is a mix of fresh share sale of ₹300 crore and an offer for sale (OFS) of ₹756 crore. Kanohar Electricals' IPO price band is set at ₹601-632 per share. Investors can apply in lots of 23 shares.

 

The company plans to use the funds raised for funding the capital expenditure requirements, incremental working capital needs and general corporate purposes.

 

Shares of the company are slated to list on BSE and NSE.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.