Kanohar Electricals IPO Review: Price, Dates, Financials and What to WatchKanohar Electricals IPO Review: Price, Dates, Financials and What to Watch

The Kanohar Electricals IPO opens on September 8 and closes on September 10, 2026. Kanohar Electricals, a Meerut-based transformer manufacturer, is raising about ₹1,056 crore through a mix of fresh issue and offer for sale. This Kanohar Electricals IPO review breaks down the price band, lot size, financials, strengths, risks and how to apply so you can decide whether to bid.

IPO Snapshot

Event	Date
IPO Opens	September 8, 2026
IPO Closes	September 10, 2026
Allotment Date	September 11, 2026
Refund / Fund Unblock	September 15, 2026
Shares Credited to Demat	September 15, 2026
Listing Date (BSE, NSE)	September 16, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹601 to ₹632 per share
Face Value	₹2 per share
Lot Size	23 shares
Minimum Investment	₹13,823 to ₹14,536
Retail Maximum	13 lots (299 shares, up to ₹1,88,968)
Fresh Issue	₹300 crore
Offer for Sale	₹755.7 crore (by K Sons Family Trust)
Total Issue Size	Approximately ₹1,056 crore
Book Running Lead Managers	Nuvama Wealth Management and IIFL Capital Services

The fresh issue money goes into the company for capex and working capital. The offer for sale portion goes to K Sons Family Trust, the Singhal family’s promoter trust, which is selling part of its stake.

What Does Kanohar Electricals Actually Do

Kanohar makes power transformers, the equipment that steps electricity voltage up or down as it moves through the grid, and also runs an EPC business, building substations and transmission lines for clients. It runs two factories in Meerut, one at Rithani and a much bigger one at Gangol, with a combined manufacturing capacity of 19,200 MVA (a unit measuring transformer power capacity).

Here’s something worth knowing before anything else: the Rithani facility is barely being used, running at just 0.25% of its capacity in FY26, the same as the year before. Almost all the actual production happens at Gangol, which ran at 49.04% capacity in FY26, up from 31.70% the year before. So a chunk of what the company owns simply isn’t contributing to output right now.

On the positive side, Kanohar is one of the few manufacturers in India that has successfully tested transformers up to 500 MVA and 400 kV, the kind of scale needed to win large, high-value contracts. It’s also one of the limited number of RDSO-certified makers of Scott transformers, a specialised type used in high-speed rail networks. The company’s order book, essentially confirmed future work, grew from ₹595.85 crore in FY24 to ₹861.47 crore in FY25 to ₹1,818.32 crore in FY26, more than doubling in the latest year.

The business splits into two segments. Transformer manufacturing made up 83.43% of FY26 revenue, while EPC services for substations and transmission lines contributed the remaining 16.44%. Government and PSU tenders accounted for 85.37% of revenue in FY26, with the balance coming from private clients. As a concrete example of the kind of large contracts it can win, Kanohar secured a ₹568.67 crore order for 500 MVA/400 kV transformers from Power Grid Corporation of India (POWERGRID) in June 2025, India’s largest electricity transmission company.

The Money Numbers

Metric	FY24	FY25	FY26
Revenue from Operations (₹ Crore)	276.69	450.61	653.84
Profit After Tax (₹ Crore)	17.76	65.12	129.73
Net Worth (₹ Crore)	178.12	243.13	372.84

Revenue has grown at roughly 54% a year over the past three years, and profit has grown even faster, nearly doubling in FY26 alone. Return on net worth, a measure of how much profit the company generates from shareholder money, climbed from 9.97% to 26.78% to 34.80% over the same three years, a clear upward trend rather than a one-off jump.

Debt is low here. Total borrowings stood at just ₹39.04 crore against a net worth of ₹372.84 crore in FY26, giving a debt-to-equity ratio of 0.10, meaning the company owes about 10 paise for every rupee of its own money, quite conservative for a manufacturing business.

On valuation, at the ₹601 to ₹632 price band and FY26 basic EPS of ₹17.43, Kanohar works out to roughly 34 to 36 times earnings. Listed peers in the transformer and power equipment space average around 107 times earnings, with the cheapest peer at 32 times and the priciest at nearly 160 times. So Kanohar is priced closer to the cheap end of its peer group, not the expensive end.

Objects of the Issue

Purpose	Amount (₹ Crore)
Capital expenditure at Gangol facility (new machinery, backward integration, an office building, solar power plants, electric trucks and forklifts)	64.18
Funding incremental working capital requirements	155.00
General corporate purposes	Balance of net proceeds, capped at 25% of gross proceeds

Strengths

• One of the few Indian manufacturers capable of building and testing transformers at the 500 MVA, 400 kV scale, which opens the door to large contracts most competitors can’t bid for.
• RDSO certification for railway Scott transformers gives it a foothold in a specialised, harder-to-enter segment.
• Order book more than doubled in FY26, giving decent visibility into near-term revenue.
• Profit has grown faster than revenue for two years running, and debt levels remain low.
• Priced below the average of its listed peers on a price-to-earnings basis.

Risks

• The Rithani facility is running at less than 1% of its capacity, effectively idle, which raises questions about how efficiently the company is using its overall asset base.
• Nearly all revenue, over 93% in FY26, comes from just its top 10 customers. Losing even one or two of them would hurt significantly.
• The business depends heavily on winning government tenders, and there’s no guarantee of continuing to win future bids at the same rate.
• It’s a working-capital heavy business, money stays tied up in inventory and unpaid customer bills for over 100 days on average, which can strain cash flow even when profits look strong.
• The RHP discloses some historical record-keeping issues, including untraceable corporate filings and a period of past non-compliance with certain regulations, worth knowing even though the company has since taken corrective steps.

How to Apply, Including Alice Blue Smart IPO

You can apply the regular way on Alice Blue: pick your investor category, choose your lot count, and submit your bid between September 8 and 10.

If you don’t want to track subscription numbers throughout the bidding window, Alice Blue’s Smart IPO feature applies on your behalf. Set your category and lot size once, confirm your UPI ID, and pick a rule for when your bid should go in, below 1x subscription, between 1x and 5x, or above 5x. The system tracks Kanohar’s live subscription numbers and files your application automatically once your rule is met, then sends a payment request for you to approve. Nothing gets deducted until shares are actually allotted.

Frequently Asked Questions