Transformer manufacturer Kanohar Electricals files IPO papers with fresh issue size of Rs 300 crore

Kanohar Electricals IPO News

• Kanohar Electricals files IPO papers to fund capex, working capital needs
• IPO comprises of fresh shares worth Rs 300 crore and OFS of 1.45 crore shares
• Fresh issue component includes pre-IPO placement amounting to Rs 60 crore

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Uttar Pradesh-based transformer manufacturer Kanohar Electricals has filed draft document with Securities and Exchange Board of India to raise funds via initial public offering for funding its capital expenditure and working capital requirements.

The company proposed to mop up Rs 300 crore via issuance of fresh shares, while promoter K Sons Family Trust will be selling up to 1.45 crore shares via offer-for-sale.

The fresh issue component includes pre-IPO placement amounting to Rs 60 crore, which may be considered by the company before filing the Red Herring Prospectus with Registrar of Companies.

Kanohar Electricals claims one of the leading domestic companies in transformer manufacturing in terms of revenue, catering to power transmission, railways, renewable energy, and power distribution industries.

The company intends to spend Rs 66.74 crore of fresh issue proceeds for purchase of new machinery and equipment, civil construction and interior development of office building, and enhancing sustainability initiatives at Gangol manufacturing facility.

Further, Rs 130 crore will be utilised for its incremental working capital requirements, and the remainder funds for general corporate purpose.

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Kanohar Electricals that competes with several listed peers like Hitachi Energy India, Bharat Heavy Electricals, Schneider Electric Infrastructure, CG Power and Industrial Solutions, Transformers & Rectifiers, and GE Vernova T&D has recorded profit of Rs 30.6 crore on revenue of Rs 165.5 crore for six months period ended September 2025.

Profit in the year ended March 2025 grew by 267 percent to Rs 65.1 crore compared to Rs 17.8 crore in previous year, while in the same period, revenue increased by 62.9 percent to Rs 450.6 crore, up from Rs 276.7 crore.

Nuvama Wealth Management, and IIFL Capital Services are appointed as merchant bankers for managing the Kanohar Electricals IPO.