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Kanohar Electricals IPO GMP Rises 36% on Final Day
Kanohar Electricals is selling shares to the public in an IPO.
The IPO opened on 8 September and closes on 10 September.
Each share costs between ₹601 and ₹632.
In the grey market, buyers were offering about ₹225 more than the highest issue price.
This suggested a possible listing price of ₹857, although it is not guaranteed.
The IPO had received bids for more than 20 times the shares available by the third day.
Experts liked the company’s growth, power-sector opportunities and ₹1,818-crore order book.
They also warned that the company depends heavily on a few customers and transformer sales.
Most cited brokerages recommended applying for long-term investment, rather than relying only on listing gains.
Kanohar Electricals IPO, priced at ₹601–₹632 per share, closes on Thursday, 10 September.
The grey market premium reached ₹225, implying an estimated listing price of ₹857, or 35.60% above the upper price band.
The issue was subscribed 20.91 times by day three, with NII bids at 51.10 times and retail bids at 14.20 times.
Brokerages generally recommended subscription for medium- to long-term investors, citing growth, profitability and a strong order book.
Risks include customer concentration, government-order dependence, transformer concentration, execution challenges and commodity-price volatility.
- Who
- Kanohar Electricals and investors bidding for its IPO; brokerages including Anand Rathi, Swastika Investmart, Kantilal Chhaganlal Securities, SBI Securities and Arihant Capital reviewed the issue.
- What
- Kanohar Electricals’ ₹1,056-crore IPO reached a 20.91-times subscription level by day three, while its grey market premium rose to ₹225.
- Where
- The issue is being reported using BSE subscription data, and the company’s fresh-issue proceeds include spending at its Gangol manufacturing facility.
- When
- The IPO opened on 8 September and closes on Thursday, 10 September; subscription data was reported at 12:57 IST on the final bidding day.
- Why
- Investors and brokerages are assessing the company’s growth prospects in power transmission, distribution and related infrastructure against valuation and concentration risks.
Reasons to Consider Applying
Risks and Reasons for Caution
Valuation
Reasons to Consider Applying
Anand Rathi, Swastika Investmart, Kantilal Chhaganlal Securities, SBI Securities and Arihant Capital said the premium valuation is supported by strong growth, profitability, certifications, capabilities or order visibility.
Risks and Reasons for Caution
The issue is valued at about 38.6 times FY26 post-issue earnings at the upper price band, and the premium over Transformers & Rectifiers (India) means investors are paying a higher valuation.
Growth prospects
Reasons to Consider Applying
Brokerages cited rising power-transmission and distribution investment, renewable-energy integration, railway electrification, grid modernisation and increasing transformer demand.
Risks and Reasons for Caution
The company remains dependent on transformer manufacturing and government, public-sector and transmission-utility orders, creating execution and demand-related risks.
Business concentration
Reasons to Consider Applying
The company’s integrated manufacturing and EPC capabilities, ₹1,818-crore order book and strong FY26 profitability provide revenue visibility and support long-term growth.
Risks and Reasons for Caution
Transformers accounted for 83% of FY26 revenue, while high customer concentration, commodity-price volatility and the sustainability of recent margin expansion require monitoring.
Key facts
- Price band
- ₹601–₹632 per equity share
- Lot size
- 23 shares, with bids allowed in multiples of 23
- Grey market premium
- ₹225, implying an estimated ₹857 listing price and a 35.60% premium to ₹632
- Subscription status
- 20.91 times overall by day three; retail 14.20 times, NII 51.10 times and QIB 10.03 times
- Issue size
- ₹1,056 crore, including a fresh issue of up to ₹300 crore and an OFS of up to 1.2 crore shares
- Order book
- ₹1,818 crore, equivalent to 2.8 times FY26 revenue
- Fresh-issue use
- ₹64.1 crore for capital expenditure, ₹155 crore for incremental working capital and the remainder for general corporate purposes
Sources
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