Kanohar Electricals' ₹1,055.74-crore IPO saw strong investor demand on its second day, with subscriptions reaching roughly 4 times. Non-institutional investors are driving the current momentum, while grey market trends suggest a potential listing premium of around 35%.
The initial public offering (IPO) of Kanohar Electricals continued to draw significant interest from investors on September 9, 2026, the second day of the bidding process. As of mid-day, the issue has been subscribed approximately 4 times, reflecting strong confidence in the company's offering. The total volume of bids received indicates healthy participation across different investor categories, particularly from non-institutional investors who have shown a clear appetite for the shares.
The IPO size stands at ₹1,055.74 crore, which includes a fresh issuance of equity shares worth ₹300 crore and an offer-for-sale component of ₹755.74 crore. The company had previously secured ₹316.72 crore from anchor investors, signaling institutional backing ahead of the public issue. The bidding window remains open, with the final subscription figures expected to provide a clearer picture of overall demand.
Financial Context and Fund Usage
For investors evaluating the business, the company’s financial health serves as a key foundation. In the fiscal year 2026, Kanohar Electricals reported a profit after tax (PAT) of ₹129.73 crore. The company maintains an EBITDA margin of 27.59%, suggesting efficient operational performance. Furthermore, the firm operates with a low debt-to-equity ratio of 0.10, indicating a conservative approach to borrowing which may provide financial flexibility.
The capital raised from the fresh issue is intended to support the company’s growth plans. Approximately ₹64.1 crore is earmarked for capital spending at its Gangol manufacturing facility, focusing on automation and new machinery. Another ₹155 crore is allocated to meet working capital requirements, which helps ensure the company can support its ongoing operational needs smoothly.
Market Sentiment and Risks
Secondary market platforms are currently showing a grey market premium of about 35%, which implies a potential listing gain. However, investors should be aware that grey market premiums are based on unofficial, speculative trading and do not guarantee actual listing-day returns. Market conditions can change rapidly, and listing performance often depends on broader economic trends at the time of debut.
While the company has shown consistent financial metrics, potential investors should consider specific business risks. Kanohar Electricals is notably dependent on government contracts and tenders. Since these projects are often cyclical, any significant slowdown in public infrastructure spending could impact revenue. Additionally, the company faces execution risks as it scales its manufacturing capacity and manages its working capital. Proper management of these factors will be crucial for maintaining its growth trajectory and profit margins.
The equity shares are tentatively scheduled to list on the stock exchanges on September 16, 2026. Investors should continue to monitor the final subscription data at the close of the bidding period and any updates on broader market conditions that may influence the eventual listing performance.