Kanohar Electricals Files IPO Papers with Fresh Issue Size of Rs 300 Crore
Kanohar Electricals, a UP-based transformer manufacturer, has filed IPO papers with SEBI for Rs 300 crore fresh issue plus OFS of 1.45 crore shares. The company will use Rs 66.74 crore for facility enhancement, Rs 130 crore for working capital, with remainder for general purposes. The company reported strong growth with profit rising 267% to Rs 65.1 crore and revenue increasing 62.9% to Rs 450.6 crore for the year ended March 2025. Nuvama Wealth Management and IIFL Capital Services are the merchant bankers.
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Uttar Pradesh-based transformer manufacturer Kanohar Electricals has filed draft documents with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. The company aims to address its capital expenditure and working capital requirements through this public offering.
IPO Structure and Size
The public offering comprises two key components designed to meet the company's funding needs:
| Component | Details |
|---|---|
| Fresh Issue Size | Rs 300 crore |
| Offer-for-Sale | 1.45 crore shares by K Sons Family Trust |
| Pre-IPO Placement | Rs 60 crore (potential) |
The fresh issue component includes a potential pre-IPO placement amounting to Rs 60 crore, which the company may consider before filing the Red Herring Prospectus with the Registrar of Companies.
Fund Utilization Plan
Kanohar Electricals has outlined a strategic allocation of the fresh issue proceeds across multiple business areas:
| Purpose | Amount (Rs Crore) |
|---|---|
| Machinery, Equipment & Facility Enhancement | 66.74 |
| Working Capital Requirements | 130.00 |
| General Corporate Purposes | Remainder |
The company intends to spend Rs 66.74 crore for the purchase of new machinery and equipment, civil construction and interior development of office building, and enhancing sustainability initiatives at its Gangol manufacturing facility.
Business Profile and Market Position
Kanohar Electricals positions itself as one of the leading domestic companies in transformer manufacturing in terms of revenue. The company serves diverse sectors including:
- Power transmission
- Railways
- Renewable energy
- Power distribution industries
The company operates in a competitive landscape alongside several listed peers including Hitachi Energy India, Bharat Heavy Electricals, Schneider Electric Infrastructure, CG Power and Industrial Solutions, Transformers & Rectifiers, and GE Vernova T&D.
Financial Performance
Kanohar Electricals has demonstrated strong financial growth across recent periods:
| Period | Revenue (Rs Crore) | Profit (Rs Crore) | Growth |
|---|---|---|---|
| Six months ended September 2025 | 165.50 | 30.60 | - |
| Year ended March 2025 | 450.60 | 65.10 | Revenue: +62.9% |
| Year ended March 2024 | 276.70 | 17.80 | Profit: +267% |
The company recorded significant growth with profit increasing by 267% to Rs 65.1 crore compared to Rs 17.8 crore in the previous year, while revenue increased by 62.9% to Rs 450.6 crore, up from Rs 276.7 crore.
IPO Management
Nuvama Wealth Management and IIFL Capital Services have been appointed as merchant bankers for managing the Kanohar Electricals IPO, bringing their expertise to guide the company through the public offering process.
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