Kanohar Electricals IPO: Rs 1056 Cr Opens Sept 8

Kanohar Electricals will open its Initial Public Offering (IPO) to the public on September 8, 2026. The issue is priced in the range of ₹601 to ₹632 per equity share and aims to raise a total of ₹1,056 crore.

The IPO structure consists of a fresh issue of shares worth up to ₹300 crore, alongside an offer-for-sale of up to 1.2 crore shares by the promoter, K Sons Family Trust. The offer-for-sale component alone is valued at ₹756 crore at the higher price band.

Funds generated from the fresh issue will be strategically allocated. Approximately ₹64.1 crore is earmarked for capital expenditure, including the acquisition of machinery for the Gangol manufacturing facility and expanding backward integration capabilities. An additional ₹155 crore will address incremental working capital needs, with the remainder for general corporate purposes.

With over 40 years of experience, Kanohar Electricals is a prominent transformer manufacturer serving key sectors like power transmission, railways, and renewable energy. Brokerage Anand Rathi highlights the company's robust revenue and EBITDA growth, projecting a 53.7 per cent CAGR for revenue and 141.0 per cent for EBITDA over FY24-FY26.

The company's substantial order book of ₹18,183 million as of FY26 provides significant revenue visibility. Anand Rathi recommends a 'subscribe - long term' rating, citing Kanohar Electricals' integrated manufacturing and diverse product range, which positions it to capitalize on India's infrastructure investments.

However, potential investors should note factors such as high customer concentration and reliance on government orders. The valuation at the upper price band is 38.6 times FY26 P/E, considered a premium but justified by superior recent growth compared to peers.