Kanohar Electricals IPO: Price Band, Lot Size, Issue Details & Everything You Need to Know 

Kanohar Electricals is returning to the public markets with an IPO after its shares were earlier listed on BSE, the Delhi Stock Exchange and the Uttar Pradesh Stock Exchange, and subsequently voluntarily delisted in 2010 because of low liquidity and trading volumes. The company operates across transformer manufacturing and engineering, procurement and construction (EPC). In FY26, transformer manufacturing contributed 83.43% of revenue from operations, while EPC contributed 16.44%. The business serves power transmission, railways, renewable energy and power distribution customers. 

The Kanohar Electricals IPO combines a fresh issue of ₹300 crore with an offer for sale of up to 11,957,915 equity shares by K Sons Family Trust. At the upper end of the verified price band, the OFS works out to about ₹755.74 crore, taking the total offer size to about ₹1,055.74 crore. The fresh capital is intended primarily for manufacturing capex and incremental working capital. 

Kanohar Electricals IPO Dates 

Kanohar Electricals IPO Price Band & Investment Details 

Kanohar Electricals IPO Structure 

The distinction between the two parts of the offer matters. The ₹300 crore fresh issue brings capital into Kanohar Electricals. The company proposes to use ₹64.18 crore for capex at its Gangol manufacturing facility and sustainability initiatives, ₹155 crore for incremental working capital, and the remaining eligible amount for general corporate purposes, subject to the limits and final offer expenses. The company will not receive proceeds from the OFS. 

About Kanohar Electricals

Kanohar Electricals was incorporated in 1972 and operates two businesses: transformer manufacturing and EPC. Its transformer business covers equipment used across power transmission and distribution, while the EPC business executes substation and transmission-line projects. 

The company operates two manufacturing facilities in Meerut, Uttar Pradesh, with aggregate transformer manufacturing capacity of 19,200 MVA as of 31 March 2026. The Gangol facility can manufacture transformers up to 500 MVA, 400 kV, suitable up to 765 kV, while the Rithani facility manufactures transformers up to 25 MVA, 66 kV. 

The revenue mix has shifted decisively towards transformer manufacturing. Its contribution increased from 51.75% of revenue from operations in FY24 to 85.17% in FY25 and 83.43% in FY26. EPC contributed 48.06% in FY24, 14.66% in FY25 and 16.44% in FY26. 

Kanohar Electricals Financials 

The RHP presents Restated Financial Information for the Group, which includes Kanohar Electricals and its interest in the Kanohar-BCPL joint operation. The figures below use that restated group basis. 

Revenue from operations grew from ₹276.69 crore in FY24 to ₹653.84 crore in FY26, a two-year CAGR of about 53.7%. Profit after tax rose from ₹17.76 crore to ₹129.73 crore over the same period. The improvement was not only volume-led: EBITDA margin expanded from 11.23% in FY24 to 27.59% in FY26, while PAT margin rose from 6.32% to 19.57%. 

The cash-flow picture is more uneven. Operating cash flow moved from negative ₹16.32 crore in FY24 to positive ₹79.38 crore in FY25, before moderating to ₹25.84 crore in FY26 even as profit increased. That divergence makes working-capital conversion an important monitorable. Net working-capital days nevertheless improved from 124 days in FY24 to 107 days in FY26. 

Sector & Market Context 

Kanohar operates against a backdrop of rising electricity demand and transmission investment. The industry section of the RHP, based on the CARE Report, notes that India’s peak power demand increased from 156 GW in FY16 to about 245 GW in FY26, a CAGR of 4.6%. Electricity requirement increased from 1,275 BU in FY19 to 1,707 BU in FY26. 

This matters because transformer demand is tied to additions and upgrades across generation, transmission, distribution, renewables and railways. At the same time, the opportunity is not independent of execution risk. Tender wins, customer concentration, working-capital availability and capacity utilisation determine how much of the sector opportunity converts into revenue and cash for the company. 

Key Considerations for Investors 

Strengths 

• Scale-up in the core business: transformer manufacturing contributed 83.43% of FY26 revenue, and aggregate installed capacity stood at 19,200 MVA.
• Larger order pipeline: the order book increased to ₹1,818.32 crore in FY26 from ₹595.85 crore in FY24.
• Improving profitability: EBITDA margin expanded from 11.23% in FY24 to 27.59% in FY26, while PAT margin rose from 6.32% to 19.57%.
• Lower leverage relative to earnings: gross debt-to-EBITDA improved to 0.22 times in FY26 from 1.35 times in FY24. 

Risks 

• Business concentration: transformer manufacturing accounted for more than four-fifths of FY26 revenue, leaving the company sensitive to transformer demand and sector cycles.
• Customer concentration remains high. The top 10 customers contributed 93.16% of FY26 revenue from operations, while the top five contributed 75.62%.
• A significant part of the business is linked to government-controlled entities and competitive tenders. Not winning bids, losing eligibility or any suspension or blacklisting could affect the order pipeline.
• Cash conversion can be volatile. FY26 operating cash flow was ₹25.84 crore despite PAT of ₹129.73 crore, highlighting the importance of receivables, inventory and project working capital.
• Manufacturing is concentrated in Meerut. Disruption affecting the Rithani or Gangol facilities could have an outsized impact on operations. 

Opportunities 

• The fresh issue is intended to expand and automate manufacturing and backward-integration capabilities at the Gangol facility, which could support higher capacity utilisation and operating efficiency.
• The company is also allocating capital towards solar power plants and electric vehicles at its manufacturing facilities, alongside working-capital funding for growth.
• Its presence across transformers and EPC allows it to participate in investment across transmission, substations, railways, renewable energy and distribution rather than relying on only one end-market. 

Conclusion 

Kanohar Electricals enters the IPO with a substantially larger revenue base, stronger margins and a much larger order book than it had two years earlier. The fresh issue is directed mainly towards manufacturing capex and working capital, while the OFS provides liquidity to the promoter selling shareholder rather than fresh capital to the company. 

The key monitorables are whether the company can convert its order book into cash without stretching working capital, sustain the margin expansion seen through FY26, diversify a highly concentrated customer base and execute the proposed capex efficiently. The final assessment should also consider the price band, valuation, execution risks and an investor’s own suitability.

Disclaimer: This article is for educational purposes only. It is not investment advice or a recommendation to apply for the IPO.