Kanohar Electricals IPO

About Kanohar Electricals IPO

Kanohar Electricals IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the Demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The IPO of Kanohar Electricals comprises a fresh issue aggregating up to ₹300 crores. There is also an offer for sale in this IPO of up to 14,590,000 equity shares. The lot size of shares in the IPO is TBA and the price band of shares is TBA per share.

The minimum investment amount required by a retail investor is TBA based on the upper price. The minimum lot for retail investors is TBA.

Kanohar Electricals was one of the leading domestic players in transformer manufacturing in terms of revenue in fiscal 2025. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution

Objectives of Kanohar Electricals IPO

The company proposes to utilise the IPO proceeds for:

1. Funding capital expenditure towards:
   

• Purchasing new machinery and equipment for its manufacturing facility located in Gangol, Meerut, Uttar Pradesh
  
• Civil construction and interior development of an office building at its Gangol manufacturing facility
  
• Enhancing its sustainability initiatives
  

2. Funding incremental working capital requirements of the company
   
3. General corporate purposes
   

Industry Outlook

The transformer market in India has been growing steadily. Between CY19 and CY24, the market increased from USD 3691.4 mn to USD 4,621.4 mn, with a CAGR of 4.6%. This growth was mainly due to more areas getting electricity and new infrastructure projects.

From CY24 to CY30, the market is expected to grow faster, reaching USD 6,822.9 mn, with a CAGR of 6.7% during this period. The strong growth in transformer demand reflects robust policy support and rising investment in energy infrastructure.

Key government initiatives such as “Power for All,” the National Electricity Plan (Transmission), the National Rail Plan 2030, and the National Infrastructure Pipeline (NIP), along with the development of Green Energy Corridors aligned with India’s 500 GW renewable energy target, decarbonisation, and energy transition goals, are driving modernisation of the grid, improving reliability, and enabling large-scale integration of renewable power.

About Kanohar Electricals

Kanohar Electricals was one of the leading domestic players in transformer manufacturing in terms of revenue in fiscal 2025. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution. As on September 30, 2025, it is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry.

Strengths of Kanohar Electricals

• Established player in the transformer manufacturing sector catering to high growth industries
• Successful short circuit testing of transformers up to 500 MVA 400 kV which enables the company to compete for large, high-value contracts across sectors
• Comprehensive presence across transformer manufacturing business and EPC business enabling it to serve a large total addressable market
• Integrated manufacturing facilities equipped to deliver high-quality products
• Track record of executing orders for large and marquee clients
• Experienced promoters and management team with significant industry experience
• Track record of profitability

Risks of Kanohar Electricals

• Reduction in demand for purchase of transformers could adversely affect business
• Economic cyclicality coupled with reduced demand or negative trend in these or other sectors that it operates in, could have material adverse effect on business
• Economic downturn or change in government policy may have an adverse impact on business
• The company may be adversely affected if it does not succeed in all or a majority of the contracts that it tenders for
• Under-utilisation of its manufacturing capacities and an inability to effectively utilise its manufacturing capacities could have an adverse effect on business
• Any disruptions in Gangol, Meerut could have a material adverse effect on business
• Any disruptions in states of Punjab, Rajasthan, Gujarat, Assam, Himachal Pradesh, Bihar, Maharashtra, Madhya Pradesh, Jharkhand and Karnataka could have a material adverse effect on business
• Any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on business
• The company is subject to time and cost overruns and are exposed to claims, penalties and damages resulting from delays
• The company is subject to time and cost overruns and are exposed to claims, penalties and damages resulting from delays in execution of EPC projects for transmission lines and substations

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: MUFG Intime India
• Book Running Lead Managers: Nuvama Wealth Management and IIFL Capital Services

Kanohar Electricals Business Model

Kanohar Electricals is into transformer manufacturing. Through its backward integrated facilities, the company offers a wide range of products and solutions for India’s energy infrastructure, particularly in the manufacture of transformers with its in-house technology.

Kanohar Electricals Company Growth Trajectory

The revenue of operations of Kanohar Electricals grew from ₹303.768 crores in FY 23 to ₹450.612 crores in FY 25. Its EBITDA margin increased from 9.34% in FY 23 to 20.73% in FY 25. Its PAT margin also rose from 5.48% in FY 23 to 14.24% in FY 25. Comprehensive presence across the transformer manufacturing business and a track record of executing orders for large and marquee clients have helped the company grow over the years.

Kanohar Electricals Market Position

Kanohar Electricals operates two manufacturing facilities in Rithani and Gangol. As on 30 September 2025, the company had five strategically located regional offices, in NCT of Delhi, Mumbai, Maharashtra, Kolkata, West Bengal, Bangalore, Karnataka, and Chennai, Tamil Nadu, and a team of over 497 employees to cater to its customers across India.

How to Apply for Kanohar Electricals IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.