Kanohar Electricals, a transformer maker situated in Uttar Pradesh, has submitted a draft document to the Securities and Exchange Board of India in order to raise money through an IPO to meet its working capital and capital expenditure needs.
Kanohar Electricals IPO Overview
Promoter K Sons Family Trust would sell up to 1.45 crore shares through an offer-for-sale, while the business plans to raise Rs 300 crore through the issuing of new shares.
Before submitting the Red Herring Prospectus to the Registrar of Companies, the business may take into consideration a pre-IPO placement totaling Rs 60 crore as part of the fresh issue component.
IPO Structure and Fundraising Details
Kanohar Electricals, which serves the power transmission, railroads, renewable energy, and power distribution sectors, is one of the top local manufacturers of transformers in terms of revenue.
The company plans to use the Rs 66.74 crore in new issue proceeds for the purchase of new machinery and equipment, office building interior development and civil construction, and improving sustainability measures at the Gangol manufacturing facility.
Utilisation of IPO Proceeds
Additionally, Rs 130 crore would be used for the company’s additional working capital needs, with the remaining cash going toward general corporate purposes.
Business Performance and Financial Growth
For the six months ending in September 2025, Kanohar Electricals, which faces competition from a number of listed competitors, including Hitachi Energy India, Bharat Heavy Electricals, Schneider Electric Infrastructure, CG Power and Industrial Solutions, Transformers & Rectifiers, and GE Vernova T&D, reported a profit of Rs 30.6 crore on revenue of Rs 165.5 crore.
In the year that ended in March 2025, revenue rose by 62.9 percent to Rs 450.6 crore from Rs 276.7 crore, while profit soared by 267 percent to Rs 65.1 crore from Rs 17.8 crore in the prior year.
Merchant Bankers and IPO Management
The merchant bankers assigned to oversee the Kanohar Electricals IPO are Nuvama Wealth Management and IIFL Capital Services.
⚡ Kanohar Electricals IPO Key Highlights
- IPO Size: ₹300 crore fresh issue
- OFS: Up to 1.45 crore shares
- Pre-IPO Placement: Up to ₹60 crore
- Core Business: Transformer manufacturing
- Manufacturing Base: Gangol, Uttar Pradesh
- Lead Managers: Nuvama & IIFL Capital
Business Segments of Kanohar Electricals’ IPO
Business for Transformer Manufacturing (85% of FY25 sales)
Power, traction, Scott, shunt reactors, and distribution transformers are the five types of transformers that the company manufactures. In FY25, it launched Scott transformers and obtained important certifications from CPRI (Power Transmission) and RDSO (Railways).
EPC Business (15% of FY25 earnings)
complements its transformer business by offering comprehensive substation and transmission line solutions up to 400 kV.
Order Book & Customer Profile for Kanohar Electricals
Total Order Book: INR 1,635.56 crore as of September 30, 2025
Orders from the government sector: 95.6% of all
Orders from the Private Sector: 4.4%
Power Grid Corporation of India, Indian Railways, Bhutan Power Corporation, Blue Star, and other state utilities are major clients.
In June 2025, the business received a significant INR 568.67 crore contract for 500 MVA 400 kV transformers from POWERGRID, demonstrating its competitiveness in high-voltage markets.
🏭 Competitive Strengths of Kanohar Electricals
- Experience: Over 40 years in transformer manufacturing
- Technology: Authorized 500 MVA 400 kV short-circuit testing
- Integration: In-house radiators and transformer tanks
- Clients: Strong PSU and government order base
- Leadership: IIT alumni-led management
Strengths in Competition
Established Market Position: More than 40 years of experience manufacturing transformers with a track record of success in the power, rail, and renewable energy industries.
Technological Advantage: One of just five Indian companies authorized to test 500 MVA 400 kV transformers for short circuits.
Backward Integration: Internal manufacturing of radiators and transformer tanks guarantees quality control and cost management.
Power, traction, and Scott transformers are just a few of the many products offered to both public and private customers.
Skilled Leadership: IIT alumni with extensive industry expertise are in charge.
Strategic Priorities
Kanohar Electricals intends to take advantage of India’s growth in transmission and renewable energy by:
Adding 18,000 MVA to the yearly manufacturing capacity
Investing in infrastructure for testing and automation
Improving internal radiator production
investigating new product lines for high-speed rail projects, such as V-connected auto-transformers and 765 kV ultra-high voltage transformers
Industry Prospects
India’s transformer industry is expected to develop at a 6.7% CAGR between CY24 and CY30, reaching USD 6.8 billion (~INR 62,300 crore), driven by grid modernization, rail electrification, and renewable integration, according to the CARE Report referenced in the DRHP. It is anticipated that the high-voltage transformer market (>400 kV) will grow at a rate of more than 9% CAGR, which will help well-known producers like Kanohar Electricals.
Frequently asked questions
1. How big is the IPO for Kanohar Electricals?
A new ₹300 crore issuance and an offer-for-sale (OFS) of up to 1.45 crore shares by promoter K Sons Family Trust comprise the IPO.
2. What would Kanohar Electricals do with the money from the IPO?
The company intends to spend the cash primarily for general corporate objectives, sustainability projects, working capital requirements (₹130 crore), and capital expenditures (₹66.74 crore).
3. Is there a pre-IPO placement component?
Indeed, before filing the Red Herring Prospectus, a pre-IPO placement of up to ₹60 crore is part of the new offering.
4. Which sectors does Kanohar Electricals cater to?
In India, Kanohar Electricals provides transformers to the railroad, electricity distribution, renewable energy, and power transmission industries.
5. What is the company’s financial performance?
The company recorded great operational performance in FY25, with a 267% increase in profit to ₹65.1 crore and a 62.9% increase in revenue to ₹450.6 crore.
Conclusion
Supported by robust revenue growth, rapid profit growth, and growing demand from India’s power and infrastructure sectors, Kanohar Electricals’ proposed IPO represents a crucial step in its growth trajectory.
Investors looking to gain exposure to the power equipment manufacturing sector will keep a close eye on the IPO due to the obvious plans to allocate cash toward working capital and capacity development, as well as competition from well-established industry peers.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or subscribe to any securities. Investors should consult their financial advisor and refer to official IPO documents before making any investment decisions.
