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Heavy Electrical Equipment
Kanohar Electricals Limited IPO
₹1056 Cr · Fresh Issue & OFS · Heavy Electrical Equipment
Price Band
₹601 – ₹632
Lot: 23 shares (₹14,536)
GMP (Grey Market)
₹240 (+37.97%)
Est. listing ₹872
Issue Size
₹1056 Cr
Fresh Issue & OFS
Market Cap
₹5004.61 Cr
At upper band
P/E Ratio
38.6x
P/S: 7.7x
Listing Date
16 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
08 Sep 2026
✓
Closes
10 Sep 2026
📋
Allotment
11 Sep 2026
₹
Refund
14 Sep 2026
📈
Listing
16 Sep 2026
IPO India Hub: Subscribe
Conviction
8/10
The company demonstrates exceptional profitability and growth with a 170% PAT CAGR, 47.6% ROCE, and a P/E of 1.68× sector midpoint supported by a 19.6% net margin. The primary risk is that OFS represents 71.6% of the issue, limiting capital deployment for growth, and the 32.4% GMP may already price in near-term optimism.
Our Analysis — Key Points
✓ Strength
Exceptional profit growth trajectory
Net profit has grown from ₹17.8 Cr (FY-2) to ₹129.7 Cr (FY0), a 170% two-year CAGR, while revenue grew 53.6% over the same period. This demonstrates strong operational leverage and margin expansion in the heavy electrical equipment sector.
✓ Strength
Strong capital efficiency metrics
ROCE of 47.61% and EBITDA margin of 20.73% indicate the company generates substantial returns on invested capital. The low debt-to-equity ratio of 0.13× provides financial flexibility for future growth without leverage risk.
⚠ Risk
High OFS dilutes capital deployment
OFS comprises 71.6% of the ₹1056 Cr issue, meaning only ₹300 Cr flows to the company for capex (₹64.18 Cr) and working capital (₹155 Cr). This limits the company's ability to fund aggressive capacity expansion or M&A relative to the IPO size.
⚠ Risk
GMP premium may reflect froth
The 32.4% grey market premium suggests retail enthusiasm, but this could indicate the market has already priced in optimistic growth expectations. Post-listing volatility and profit-taking pressure should be monitored closely in the first weeks.
₹ Valuation
Valuation justified by margin strength
At 38.6× P/E, the company trades at 1.68× the niche/unlisted sector midpoint of 23×, which is within the Subscribe threshold given the 19.6% NPM and 170% PAT CAGR. The P/S ratio of 7.7× is elevated but defensible given the 20.7% EBITDA margin.
👁 Watch
Monitor order book and capacity utilization
Post-listing, track quarterly order inflows, execution timelines, and capex deployment against the ₹64.18 Cr budgeted for fixed assets. Any slowdown in order growth or delays in capacity commissioning would signal execution risk.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Kanohar Electricals Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹653.84 Cr
Net Profit
₹129.73 Cr
Industry
Heavy Electrical Equipment
Issue Type
Fresh Issue & OFS
Promoters
DINESH SINGHAL, ADESH SINGHAL, VIVEK SINGHAL, ABHISHEK SINGHAL, VIRAT SINGHAL, ADITYA SINGHAL AND K SONS FAMILY TRUST
Lead Managers
Nuvama Wealth Management and IIFL Capital
Quick Actions
Frequently Asked Questions
Subscribe. The company demonstrates exceptional profitability and growth with a 170% PAT CAGR, 47.6% ROCE, and a P/E of 1.68× sector midpoint supported by a 19.6% net margin. The primary risk is that OFS represents 71.6% of the issue, limiting capital deployment for growth, and the 32.4% GMP may already price in near-term optimism.
The current grey market premium (GMP) is ₹240, which is 37.97% above the upper band price of ₹632. This implies an estimated listing price of around ₹872. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 23 shares. At the upper band price of ₹632, the minimum investment per retail application is ₹14,536. You can apply for up to 13 lots (₹188,968) under the retail category (up to ₹2 lakh).
The IPO opens on 08 Sep 2026. It closes on 10 Sep 2026. Allotment is expected on 11 Sep 2026. Refunds initiate on 14 Sep 2026. Listing on BSE and NSE is on 16 Sep 2026.
The lead managers for the IPO are Nuvama Wealth Management and IIFL Capital. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 10 Sep 2026. The minimum investment is ₹14,536 for one lot (23 shares). The company demonstrates exceptional profitability and growth with a 170% PAT CAGR, 47.6% ROCE, and a P/E of 1.68× sector midpoint supported by a 19.6% net margin. The primary risk is that OFS represents 71.6% of the issue, limiting capital deployment for growth, and the 32.4% GMP may already price in near-term optimism.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 10 Sep 2026. The IPO is priced at a P/E of 38.6x. Market cap at issue price is ₹5004.61 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 23 shares at ₹632 each, costing ₹14,536 per application. The issue closes on 10 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Kanohar Electricals Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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