Transformer Maker Kanohar Files Draft IPO Papers

Kanohar Electricals, the transformer maker based in Uttar Pradesh, has taken its first step toward going public. It submitted draft papers with the Securities and Exchange Board of India (SEBI). The company plans to use the proceeds to expand operations and support day-to-day working capital needs.

What Is Kanohar Electricals Planning Through Its IPO?

The proposed initial public offering will include a fresh issue of shares worth up to ₹300 crore. Along with this, promoter K Sons Family Trust plans to sell up to 1.45 crore shares through an offer for sale.

The fresh issue may also see a pre-IPO placement of up to ₹60 crore before the company files its red herring prospectus. If this happens, the size of the fresh issue may be reduced accordingly.

How Will the Company Use the IPO Proceeds?

According to the draft prospectus, Kanohar Electricals plans to use a large part of the funds for business growth. Around ₹130 crore will go towards incremental working capital requirements.

Another ₹66.74 crore is earmarked for capital expenditure. This includes buying new machinery and equipment at its Gangol manufacturing facility, civil and interior work for an office building, backward integration and automation, sustainability initiatives such as solar power installations, and electric vehicles for internal logistics. The remaining amount will be used for general corporate purposes.

How Has Kanohar Electricals Performed Financially?

Kanohar Electricals ended the financial year 2025 on a high note with its revenue growing by 63%. Its revenue increased to ₹450.6 crore during the last financial year. Even more notable was the jump in the profit after tax (PAT), which more than tripled, finishing the year at ₹65.1 crore. This is also reflected in the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA), which rose to ₹93.3 crore, signalling that the business is successfully maintaining healthy margins even as it increases production.

This upward trend in revenue has been maintained by the company in the current financial year, too. It has achieved a revenue of ₹165.5 crore and a profit after tax of ₹30.6 crore for the period up to September 30, 2025. These numbers indicate a steady growth rate as the firm gears up to face the test of the public markets.

About Kanohar Electricals

Operating from two units in Meerut, Uttar Pradesh, Kanohar Electricals is a key player in the power transmission, railway, and renewable energy sectors. As it moves toward its IPO, it is increasingly being compared to established industry giants like Hitachi Energy India, BHEL, and CG Power.

With Nuvama Wealth Management and IIFL Capital Services taking the lead in this issue, the company is looking to strengthen its internal infrastructure. The registrar for this upcoming issue is MUFG Intime, as the company continues on its journey towards transitioning from a private entity to a publicly traded powerhouse.

Looking Ahead

With Kanohar Electricals getting closer to listing, the main areas of interest for investors would be how large this issue ends up being, as well as how the company makes use of this new capital, particularly in increasing manufacturing capabilities.

Sources:

NSE India

Business Standard

Moneycontrol