Kanohar Electricals, a key player in the power sector equipment market, opened its ₹1,055.74 crore initial public offering for public subscription on Tuesday, September 8. The issue has generated substantial enthusiasm among market participants, with grey market activity pointing to a premium of over 31 percent above the issue's upper price threshold. The three-day bidding window will allow retail and institutional investors to submit their applications until September 10.
Issue Structure and Price Band Details
The ₹1,055.74 crore public offer combines a fresh issue component alongside an offer for sale. The fresh equity issue comprises 47.47 lakh shares intended to raise ₹300 crore, while existing shareholders are offloading 1.20 crore shares valued at ₹755.74 crore through the OFS route. The management has established the price band between ₹601 and ₹632 per equity share.
For retail participants, the minimum bid lot has been designated at 23 shares. At the ceiling price of ₹632, individual investors are required to commit a minimum capital of ₹14,536 for a single lot. Subscriptions for higher amounts must be placed in multiples of 23 shares.
Grey Market Trends and Projected Listing Premiums
Un-official market data tracked by investorgain indicates that Kanohar Electricals shares are demanding a grey market premium of ₹196 per share. Based on the upper price boundary of ₹632, the current grey market trends suggest a potential listing price of ₹828 per share. If these grey market valuations hold through the allocation phase, successful bidders could experience a listing day gain of approximately 31.01 percent.
Key Subscription Dates and Allotment Schedule
The subscription window remains operational for three consecutive business days from September 8 through September 10. Following the conclusion of bidding, the allotment of shares is anticipated to be finalized on September 11. After the completion of share allocation and demat transfers, the equity shares are scheduled for tentative listing on both the NSE and BSE stock exchanges on September 16.
Financial Strength and Operational Metrics
Kanohar Electricals operates as an integrated transformer manufacturer with specialized engineering, procurement, and construction capabilities, positioning it favorably for major power grid projects. In the financial year 2026, the company recorded a 45 percent increase in operational revenue to ₹653.8 crore. Over the same period, net profit after tax nearly doubled to reach ₹129.7 crore.
The company maintains robust financial health indicators, featuring a Return on Equity of 42.1 percent and a Return on Capital Employed of 70.1 percent for FY26. Its conservative balance sheet structure is highlighted by a minimal debt to equity ratio of 0.10x. Furthermore, an unexecuted order book standing at ₹1,818 crore—equivalent to 2.8 times its FY26 revenue—provides revenue visibility for upcoming quarters.
Brokerage Views and Business Risk Analysis
In an analytical note, brokerage firm Swastika Investmart highlighted the company's strong execution capabilities in power infrastructure. However, the report also flagged concentration risk, pointing out that transformers accounted for 83 percent of the company's total revenue in FY26.
Regarding valuation, the issue's price band translates to a price-to-earnings multiple of roughly 34.5x to 36.3x based on FY26 EPS, which analysts consider reasonable when benchmarked against industry peers. Capital raised through the fresh issue will be utilized to fund business expansion. Swastika Investmart noted that long-term investors may consider participating due to solid business fundamentals, while short-term market conditions will dictate the extent of listing gains.
