Kanohar Electricals opens its ₹1,056-crore IPO on September 8, 2026, offering shares between ₹601 and ₹632. The transformer manufacturer aims to fund capacity expansion and working capital. Investors may evaluate risks related to high client concentration and dependence on government tenders.
Kanohar Electricals is set to launch its initial public offering (IPO) on September 8, 2026, aiming to raise ₹1,056 crore from the public markets. The subscription window for the issue will remain open until September 10, 2026. The company has set a price band of ₹601 to ₹632 per equity share, with a lot size of 23 shares for retail investors.
The IPO comprises two parts: a fresh issue of shares worth ₹300 crore and an offer-for-sale (OFS) of shares valued at approximately ₹756 crore by the promoter, K Sons Family Trust. The proceeds from the fresh issue are earmarked for capital expenditure at the company’s Gangol manufacturing unit, which includes machinery procurement and automation, as well as meeting incremental working capital requirements.
With over four decades of history in the transformer manufacturing sector, the company services various industries, including railways, power transmission, and renewable energy. For the fiscal year 2026, the company reported revenue of ₹662.86 crore and a profit after tax of ₹129.73 crore. As of March 31, 2026, the company maintained an order book of ₹1,818.32 crore, which provides some visibility for its near-term operational growth.
While the company has demonstrated growth, investors should consider specific risk factors before participating. The business exhibits high customer concentration, with the top 10 clients accounting for over 93% of the company's revenue. This means the loss of a major contract could significantly impact financial performance. Furthermore, the company is heavily reliant on government tenders and power sector spending, which are subject to policy shifts and budgetary cycles. Additionally, profit margins may be susceptible to volatility in raw material costs, particularly copper and specialized steel, which are essential for transformer production.
The equity shares are expected to be listed on the stock exchanges tentatively on September 16, 2026. Moving forward, market participants may monitor the company’s ability to execute its planned capacity expansion at the Gangol facility and how it manages its dependence on a concentrated client base and government-driven demand.