Kanohar Electricals Limited on September 8, 2026 is launching its IPO and attracted a lot of investment at a price of ₹601–632 per share and will be on BSE and NSE until September 10.
The Kanohar Electricals IPO comprises a fresh issue of shares worth ₹300 crore and an offer for sale (OFS) of about ₹755.74 crore by promoter K Sons Family Trust. At the upper end of the price band, the total issue size is around ₹1,055.74 crore. The IPO has a lot size of 23 shares, so retail investors applying for one lot at the upper price of ₹632 would need around ₹14,536.
The biggest talking point about this IPO is the grey market premium. In the run up to the IPO opening, GMP was reported to be about ₹205 per share, or 32% above the IPO price band. GMP is an unofficial market indicator and is not regulated or guaranteed. It can rapidly change as market sentiment, demand and wider conditions change.
If GMP were to be around ₹205, the listing level would be around ₹837 against ₹632 upper issue price. But investors should not interpret this calculation as a prediction of the actual listing price. The grey market can be volatile and the premium may decline or disappear before shares are officially traded.
Kanohar Electricals is a transformer manufacturing and power transmission and distribution company. This company makes electrical products for power supply and distribution, railway, and renewable energy. Engineering, procurement and construction work is also to be done in the power industry. Exposure to growing electricity infrastructure in India has attracted investors.
The company’s recent financial performance is also integral to the IPO story. According to IPO data, Kanohar Electricals reported revenue of around ₹653.83 crore in FY2026, compared to ₹276.6 crore in FY2024. And profit after tax grew significantly as well, rising to ₹129.7 crore in FY2026 from ₹17.7 crore in FY2024. This growth in revenue and profitability is indicative of a strong performance over the period.
The company also has technical capabilities that are highly capable of harnessing the investments India is making in power infrastructure as well. Kanohar Electricals has certification for manufacturing 500 MVA, 400 kV transformers and experience with transformer ratings across multiple transformer ratings. It has certification for 500 MVA, 400 kV transformers and has some power transformer certification and a range of transformer ratings. It also has various certifications to manufacture transformers for railway electrification. All these capabilities could potentially enable the company to participate in large infrastructure and power sector opportunities.
But there are risks for potential investors to take into account. The majority of the IPO is an offer for sale and not fresh capital going into the company. While ₹300 crore from the fresh issue is to fund business expansion and working capital, the majority of the offer is from shares held by an existing promoter shareholder.
Another factor is customer concentration. Government entities account for about 85% of Kanohar Electricals' revenue for FY2026 as per reports indicate. Such concentration can pose risks if government orders, project timelines, tender activity or procurement patterns change. Investors need to consider the cyclical nature of capital expenditure in power and infrastructure industries.
The IPO is managed by Nuvama Wealth Management and IIFL Capital Services, while MUFG Intime India is the registrar. The issue is expected to close on September 10 and initial allotment will take place on September 16.
So, should investors subscribe to the Kanohar Electricals IPO? The strong GMP, fast-growing revenue and profits, technical capabilities and exposure to India's power infrastructure expansion make the issue interesting. At the same time, the high OFS component, customer concentration and reliance on continued infrastructure spending are risks to be taken with caution.
For investors who are considering the IPO, GMP should be viewed as a sentiment indicator and not as the main reason to apply. A more meaningful assessment should be done in terms of valuation, financial health of the company, business prospects, competitive position, risks and how fresh issues will be used. Kanohar Electricals is certainly on the list for IPO in the opening and the long-term investment case would then turn out to be based on whether it can grow and make money after listing.
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