Kanohar Electricals IPO to open September 8; price band fixed at Rs 601–632
Kanohar Electricals will launch its IPO on September 8 with a Rs 601–632 price band, targeting up to Rs 1,055.74 crore. The transformer maker plans to use proceeds for working capital, expansion and sustainability initiatives.
By Somanjali Das, ETMarkets.com |
Agencies
Kanohar Electricals’ IPO opens September 8, offering investors exposure to a transformer manufacturer serving power, railways, renewable energy and distribution sectors.
Transformer manufacturer Kanohar Electricals Limited will open its initial public offering (IPO) on September 8 at a price band of Rs 601–632 per share.
The IPO comprises a fresh issue of up to Rs 300 crore and an offer for sale of nearly 1.20 crore shares. At the upper end of the price band, the IPO could raise approximately Rs 1,055.74 crore.
The issue will close on September 10. Investors can bid for a minimum of 23 shares and in multiples of 23 thereafter, requiring a minimum investment of Rs 13,823 at the lower end of the price band and Rs 14,536 at the upper end. The shares are proposed to be listed on the BSE and NSE.
The grey market premium (GMP) for Kanohar Electricals is trading 24% higher than the issue price, indicating potentially decent gains for investors on listing day.
According to the company filing, it plans to use Rs 155 crore from the fresh issue to meet incremental working-capital requirements. Another Rs 64.1 crore will fund capital expenditure at its Gangol manufacturing facility.
Part of the proceeds will also support the company’s sustainability initiatives, including solar power plants at its manufacturing facilities and electric vehicles for material handling. The remaining funds will be used for general corporate purposes, it further added.
Up to 50% of the net offer will be allocated to qualified institutional buyers, while at least 15% will be available to non-institutional investors and at least 35% to retail investors.
The company’s revenue from operations increased to Rs 653.83 crore in FY26 from Rs 276.6 crore in FY24. Net profit rose to Rs 129.7 crore from Rs 17.7 crore during the same period.
About the company
Kanohar Electricals manufactures transformers for power transmission, railways, renewable energy and power distribution. It also executes engineering, procurement and construction projects involving substations and transmission lines of up to 400 kV.
The company said that it is among five Indian manufacturers with short-circuit test certification for 500 MVA, 400 kV transformers. It is also certified by the Research Designs and Standards Organisation to manufacture specialised Scott transformers used in railway electrification.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The IPO comprises a fresh issue of up to Rs 300 crore and an offer for sale of nearly 1.20 crore shares. At the upper end of the price band, the IPO could raise approximately Rs 1,055.74 crore.
The issue will close on September 10. Investors can bid for a minimum of 23 shares and in multiples of 23 thereafter, requiring a minimum investment of Rs 13,823 at the lower end of the price band and Rs 14,536 at the upper end. The shares are proposed to be listed on the BSE and NSE.
The grey market premium (GMP) for Kanohar Electricals is trading 24% higher than the issue price, indicating potentially decent gains for investors on listing day.
According to the company filing, it plans to use Rs 155 crore from the fresh issue to meet incremental working-capital requirements. Another Rs 64.1 crore will fund capital expenditure at its Gangol manufacturing facility.
Part of the proceeds will also support the company’s sustainability initiatives, including solar power plants at its manufacturing facilities and electric vehicles for material handling. The remaining funds will be used for general corporate purposes, it further added.
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Up to 50% of the net offer will be allocated to qualified institutional buyers, while at least 15% will be available to non-institutional investors and at least 35% to retail investors.
The company’s revenue from operations increased to Rs 653.83 crore in FY26 from Rs 276.6 crore in FY24. Net profit rose to Rs 129.7 crore from Rs 17.7 crore during the same period.
About the company
Kanohar Electricals manufactures transformers for power transmission, railways, renewable energy and power distribution. It also executes engineering, procurement and construction projects involving substations and transmission lines of up to 400 kV.
ADVERTISEMENT
The company said that it is among five Indian manufacturers with short-circuit test certification for 500 MVA, 400 kV transformers. It is also certified by the Research Designs and Standards Organisation to manufacture specialised Scott transformers used in railway electrification.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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