Kanohar Electricals Debuts on Exchanges with 30% Grey Market Premium
The transformer maker returns to public markets after a 16-year absence, backed by a 90.59x subscription and a robust order book.
Kanohar Electricals listed on Indian exchanges on Wednesday, September 16, marking its return to the public equity market 16 years after a voluntary delisting. The shares opened with a premium of approximately 30% over the issue price in grey market trading, reflecting strong institutional and retail interest ahead of the debut.
The ₹1,055.7-crore initial public offering was subscribed 90.59 times on the final day of bidding. The qualified institutional buyer segment saw the highest demand at 215.37 times, while the non-institutional investor category was subscribed 87.74 times and the retail portion 20.51 times. According to GN stocks/ipo, the strong subscription indicates confidence in the company's integrated manufacturing capabilities and market position.
Financial Performance and Order Book Strength
Kanohar Electricals reported a 45.1% increase in revenue for the fiscal year 2026, reaching ₹653.8 crore from ₹450.6 crore in the previous year. Profit for the year nearly doubled to ₹129.7 crore, up from ₹65 crore, driven by higher volumes and improved operational efficiency. The company’s order book stands at ₹1,818.3 crore as of March 2026, providing substantial visibility for future earnings.
The transformer business accounted for 83% of the company’s top line in FY26, while engineering, procurement, and construction activities contributed 16%. The remaining revenue was generated from other activities. This mix reflects the company’s focus on core manufacturing while leveraging project-based services to capture broader grid infrastructure demand.
Capital Allocation and Expansion Plans
The IPO included a fresh issue of up to ₹300 crore and an offer for sale of 1.19 crore shares worth ₹755.7 crore at the upper price band. From the fresh issue proceeds, ₹64.1 crore is allocated for capital expenditure, including machinery for the Gangol facility, automation of backward integration, and construction of office infrastructure. Additional investments will fund solar power plants and the purchase of electric vehicles.
A further ₹155 crore will address incremental working capital requirements, supporting the company’s growing order pipeline. The remaining funds are designated for general corporate purposes. These capital deployments are intended to enhance production capacity, improve supply chain resilience, and support the company’s scalability in a competitive market that includes players like Hitachi Energy India and Siemens Energy.
Market Demand and Sector Dynamics
Demand for transformers is expected to remain sustained due to rising investments in power transmission, renewable energy integration, railway electrification, and grid modernization. Kanohar Electricals benefits from its in-house manufacturing and integrated capabilities, which allow for better quality control and execution efficiency. The company’s return to the stock market follows a delisting in 2010, which was attributed to low liquidity and trading volumes at the time.
