Kanohar Electricals IPO Day 2: GMP signals 35% premium, subscription nears 3x. Should you bid?

Kanohar Electricals IPO has entered its second day of bidding on Wednesday, with strong investor interest. The three-day issue has received a robust response so far. A grey market premium (GMP) of around 35% has further boosted market interest, keeping the IPO firmly on investors’ radar ahead of its stock market debut.

The IPO was subscribed 2.70 times on Day 1, against the 1.16 crore shares on offer. Retail investors showed even stronger appetite, with the RII portion subscribed 3.30 times against the 58.46 lakh shares reserved for the category.

Kanohar Electricals IPO is a book-built issue worth Rs 1,055.74 crore, comprising a fresh issue of 47.47 lakh shares worth Rs 300 crore and an offer for sale (OFS) of 1.20 crore shares amounting to Rs 755.74 crore.


The IPO price band has been fixed at Rs 601–Rs 632 per share, while the lot size is 23 shares. At the upper end of the price band, retail investors will need to shell out a minimum of Rs 14,536 for one lot.

Kanohar Electricals IPO opens for subscription on Sep 8, 2026 and closes on Sep 10, 2026. The allotment for the Kanohar Electricals IPO is expected to be finalized on Sep 11, 2026. Kanohar Electricals IPO will list on NSE and BSE with a tentative listing date fixed as Sep 16, 2026.

Nuvama Wealth Management Limited and IIFL Capital Services Limited are the book-running lead managers for the issue, while MUFG Intime India Private Limited is acting as the registrar.

Kanohar Electricals IPO Subscription Status

The Kanohar Electricals IPO witnessed strong demand on the first day of bidding, with the issue getting subscribed 2.70 times overall against the 1.16 crore shares on offer.

Breaking down the category-wise subscription, Retail Individual Investors (RIIs) subscribed 3.30 times the 58.46 lakh shares reserved for them.

The Non-Institutional Investors (NIIs) segment saw even stronger demand, with subscription reaching 4.87 times against the 25.05 lakh shares offered.

Meanwhile, the Qualified Institutional Buyers (QIBs) portion was subscribed 3%, against the 33.40 lakh shares reserved for the category.

Kanohar Electricals IPO GMP Today

The Kanohar Electricals IPO continues to command a strong premium in the grey market. The latest Grey Market Premium (GMP) stands at Rs 218 per share, translating to a premium of around 35% over the upper end of the IPO price band of Rs 632. At the current GMP, the estimated listing price is around Rs 850 per share, indicating a potential premium over the IPO's upper price band.

GMP Note: The Grey Market Premium (GMP) is an unofficial indicator of investor sentiment and is not regulated or guaranteed by stock exchanges. GMP can fluctuate before the listing, and the actual listing price may differ significantly from the estimated price based on grey-market trends.

IPO Objects of the Issue

Kanohar Electricals plans to use the net proceeds from the IPO primarily to fund its capital expenditure requirements, with an estimated allocation of Rs 64.18 crore. The company also proposes to deploy Rs 155 crore towards incremental working capital requirements.

The remaining proceeds will be utilised for general corporate purposes. Overall, the company plans to utilise approximately Rs 219.18 crore from the issue proceeds towards these objectives.

Financial Performance

Kanohar Electricals reported a 45% year-on-year increase in total income, rising from Rs 457.30 crore in FY25 to Rs 662.86 crore in FY26. The company also recorded strong growth in profitability during the period. Profit after tax (PAT) nearly doubled, climbing 99% from Rs 65.12 crore in FY25 to Rs 129.73 crore in FY26, highlighting a significant improvement in its bottom line.

About Kanohar Electricals Ltd.

Incorporated in 1972, Kanohar Electricals Limited is an Indian transformer manufacturer serving the power transmission, railways, renewable energy and power distribution sectors. The Company operates across two segments: transformer manufacturing and EPC services. It is one of only four Indian manufacturers certified by RDSO to manufacture 100 MVA, 132 kV Scott transformers. Kanohar operates two manufacturing facilities in Meerut, Uttar Pradesh, with a combined transformer manufacturing capacity of 19,200 MVA as of March 31, 2026. The Company also has five regional offices across India and a workforce of 526+ employees.

Should you subscribe?

According to AnandRathi research report, "The company offers exposure to the structural growth in India’s power transmission and distribution sector, supported by rising grid investments, renewable energy integration and increasing demand for high-voltage transformers. However, the high customer concentration, dependence on the Transformer Manufacturing Business and government/transmission utility orders warrant a measured outlook. At the upper price band, the company is valued at 38.6x FY26 P/E and 28.0x EV/EBITDA, implying a post-issue market capitalization of Rs 50,046 million. While the valuation is at a premium to Transformers & Rectifiers (India) Limited at 32.2x P/E and 20.8x EV/EBITDA, the premium is supported by Kanohar’s superior recent growth and profitability profile. Accordingly, we recommend a “Subscribe – Long Term” rating for the issue.

SBI Securities said, “At the upper price band of Rs 632, the issue is valued at 38.6x FY26 post-issue P/E, which appears reasonable given its strong growth trajectory, niche certifications, robust order pipeline and favourable industry tailwinds. We recommend subscribing to the issue at the cut-off price.”

Arihant Capital said, “At the upper price band of Rs 632 per share, the issue is valued at approximately 38.58x FY26 earnings, depending on the share-count methodology used. The premium valuation is supported by strong earnings growth, improving margins, high ROCE and a sizeable order book. However, investors should monitor customer concentration, government/PSU dependence, execution risk, commodity-price volatility and the sustainability of the recent margin expansion. We recommend subscribing for investors with a medium-to-long-term horizon.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)