Kanohar Electricals IPO Oversubscribed on Day 1

Kanohar Electricals Ltd's initial public offering (IPO) garnered significant investor interest, being subscribed 2.70 times on its first day. The Rs 1,056-crore issue saw robust demand, particularly from non-institutional and retail investors, who booked 4.87 and 3.29 times their respective quotas. The portion for Qualified Institutional Buyers (QIBs) recorded 3% subscription.

The company has already secured Rs 317 crore from anchor investors. The IPO, which opened for subscription on the first day and is set to conclude on September 10, has a price band of Rs 601-632 per equity share. This offering comprises a fresh issue of shares worth up to Rs 300 crore and an offer-for-sale of up to 1.2 crore shares by the promoter.

Proceeds from the fresh issue are earmarked for crucial capital expenditures, including machinery procurement for its Gangol facility, expansion of integration facilities, and sustainability initiatives. A substantial amount will also fund incremental working capital requirements, with the remainder allocated to general corporate purposes. Kanohar Electricals is a leading domestic transformer manufacturer serving key sectors like power transmission and railways.