Strong Institutional Interest in Kanohar Electricals IPO
Kanohar Electricals, a transformer manufacturer based in Meerut, is preparing for its market debut on Wednesday, September 16. The company’s Rs 1,056-crore initial public offering (IPO) attracted significant demand, with overall subscription reaching 90.59 times on the final day of bidding.
According to NSE data, the issue received bids for approximately 1.06 billion shares against 1.17 million shares on offer. Institutional investors showed particular conviction, with the Qualified Institutional Buyer (QIB) segment subscribed 215.37 times. The Non-Institutional Investor (NII) category saw 87.74 times subscription, while the retail investor portion was subscribed 20.51 times.
Financial Performance and Order Book
Analysts highlight the company’s robust financial trajectory as a key driver for its valuation. Over the period from FY24 to FY26, Kanohar Electricals recorded a 53.7% Compound Annual Growth Rate (CAGR) in revenue from operations. During the same period, EBITDA grew at a CAGR of 141%.
As of FY26, the company’s order book stood at Rs 18,183 million, providing substantial revenue visibility. The firm has over 40 years of experience in manufacturing transformers for power transmission, railways, renewable energy, and power distribution sectors. Its integrated manufacturing capabilities allow for better quality control and scalability, according to Mahesh M Ojha, Vice President at Kantilal Chhaganlal Securities.
Analyst Recommendations and Valuation
At the upper price band, the company is valued at 38.6 times FY26 P/E and 28 times FY26 EV/EBITDA, implying a post-issue market capitalisation of Rs 50,046 million.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, noted that while the company benefits from structural growth in India’s power sector, high customer concentration and dependence on government orders warrant a measured outlook. He recommended that investors who received allotment book partial profits on a premium listing and hold the rest for the long term.
Sarvam Goes, Founder of Pocketful, expects the stock to open with a listing-day gain of 30-40% over the Rs 632 issue price. He advised investors who missed the allotment to use any correction toward the lower end of this range as an entry point. Ojha from Kantilal Chhaganlal Securities projected a slightly more conservative listing gain of 25-27%.
Market Context
The positive outlook is underpinned by multi-year capital expenditure in India’s grid infrastructure and the ongoing railway electrification drive. These factors are expected to sustain demand for high-voltage transformers, positioning Kanohar Electricals to benefit from the broader modernisation of the country’s power and transport sectors.