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Kanohar IPO: Strong Listing Expected?
8 Sep
Summary
- Kanohar Electricals IPO opens September 8, closes September 10.
- The price band is set between ₹601-₹632 per share.
- Grey market premium (GMP) indicates a robust listing expectation.
The Kanohar Electricals IPO subscription window opens on Tuesday, September 8, and will conclude on Thursday, September 10. The offering's price band is fixed at ₹601 to ₹632 per equity share, with a face value of ₹2 per share. Bids can be placed in multiples of 23 equity shares.
Grey market activity indicates a strong listing expectation, with the Grey Market Premium (GMP) showing an upward trend. This positive sentiment is further supported by analyst recommendations. Anand Rathi has assigned a 'Subscribe - Long Term' rating, citing Kanohar's strong recent growth and profitability.
Swastika Investmart highlights Kanohar's integrated transformer manufacturing and EPC capabilities, positioning it well for large power projects. Despite an 83% revenue concentration in transformers, strong financial metrics like a 42.1% ROE and a low debt-to-equity ratio of 0.10x are notable.
Kantilal Chhaganlal Securities concurs, believing Kanohar's premium valuation over peers is justified by superior growth. The company plans to allocate ₹64.1 crore for capital expenditure, including machinery for its manufacturing facility, and ₹155 crore for incremental working capital.
The IPO allotment is expected on Friday, September 11, with refunds processed and shares credited on Tuesday, September 15. The shares are slated to list on the BSE and NSE on Wednesday, September 16.
