Kanohar Electricals IPO Review: 72% OFS, 38x FY26

Key takeaways

• The book is ₹1,055.74 crore: ₹300 crore fresh, ₹755.74 crore OFS by K Sons Family Trust — about 72% of the issue does not enter the company.
• Restated PAT went ₹17.76 crore → ₹65.12 crore → ₹129.73 crore in FY24–FY26; the order book doubled to ₹1,818.32 crore.
• At ₹632, post-issue mcap is ₹5,005 crore, or 38.58x FY26 earnings — versus Transformers & Rectifiers (India) at 32.19x.
• Top 10 customers were 93.16% of FY26 revenue; one customer was 31.28%. Combined plant utilisation is 45.99%; the Rithani unit ran below 1%.
• Day 1 (8 Sep, 12:03 IST) printed 1.01x overall with QIB at 0.00x. An unofficial GMP of ₹150 was quoted on 3 Sep — unofficial, unregulated, often wrong.

The deal in one paragraph

Kanohar Electricals is a 1972 Meerut transformer and EPC franchise returning to the listed market after a 2010 voluntary delist. The operating story is real: certifications at 400 kV, an order book that doubled in a year, and EBITDA margin that moved from 11% to 27%. The offer in front of you is something else — a ₹756 crore promoter-trust sale next to ₹300 crore of new capital, priced at 38.6x the year profit jumped 7x, with 93% of sales in ten names. My read comes at the end, as a checklist, not as an instruction.

Data

Issue structure

Item	Figure	Units
Total issue	1,055.74	₹ cr
Fresh issue	300.00	₹ cr
OFS (K Sons Family Trust)	755.74	₹ cr
Price band	601–632	₹ / share
Lot	23	shares (₹14,536 at the cap)
Promoter pre-Offer	99.72	%
Listing (tentative)	16 Sep 2026	NSE + BSE

Source: Outlook Money; Bajaj Broking. Fresh proceeds are earmarked for Gangol capex, working capital and general corporate purposes. The company does not receive OFS cash.

Financials (restated, ₹ cr)

	FY24	FY25	FY26
Total income	281.12	457.30	662.86
EBITDA	31.07	93.39	180.42
EBITDA margin	11.05%	20.42%	27.22%
PAT	17.76	65.12	129.73
Net worth	178.12	243.13	372.84
Borrowings	—	—	39.04
Order book (Mar)	—	861.47	1,818.32

Units: ₹ crore except margins. Source: Outlook Money; Bajaj Broking. Trade Brains prints FY26 revenue from operations as ₹653.84 crore — a ₹9 crore gap versus the ₹662.86 series; flagged, not forced into the multiple. Operating cash flow was not in the secondary notes I used.

Valuation at the upper band

Metric	At ₹632
Post-issue mcap	₹5,005 cr
P/E on FY26 PAT	38.58x
P/E on FY25 PAT (derived)	~76.9x
EV/EBITDA FY26	28x
TRF (India) P/E	32.19x
Hitachi Energy India P/E	159.55x
Schneider Infra P/E	155.12x
RHP peer-average P/E	107.05x

Units: rupees crore and times. Source: Outlook Money; Business Today (Anand Rathi EV/EBITDA). Hitachi and Schneider pull the average; they are not mid-cap transformer clones.

Subscription and unofficial GMP

Day 1, 8 Sep 2026, 12:03 IST (IPO Central): overall 1.01x, retail 1.38x, NII 1.47x, QIB ex-anchor 0.00x. An unofficial GMP of ₹150 over ₹632 was quoted on 3 Sep (Outlook). Grey-market prints are informal, unregulated and often wrong; I do not treat them as a listing forecast.

Risks

• OFS weight. ₹756 crore leaves with the promoter trust; ₹300 crore stays.
• Customer concentration. Ten names are 93% of FY26 sales; one name is 31%.
• One working plant. Combined utilisation 46%; Rithani idle.
• Unhedged copper and CRGO, plus four fixed-price contracts.
• 38.6x on the spike year; ~77x if FY25 is closer to earning power.
• Missing 1970s–80s RoC filings, as disclosed.

What to watch

I run every IPO through the same five checks. At ₹632 this issue clears 1 of 5 (business). Numbers are partial (OCF missing). Price and red flags do not clear.

What would change my mind: QIB demand above 5x by the 10 Sep close with named mutual-fund follow-through, and two post-listing quarters holding EBITDA margin at or above 22% with disclosed positive operating cash — or a live print near the TRF multiple on FY26. Listing is tentatively 16 Sep 2026. Allotment is expected 11 Sep.

A companion video is planned; this article is the source of every number it will be allowed to speak.

Sources

1. Outlook Money, Kanohar IPO structure, financials, peers, unofficial GMP (3 Sep 2026) — accessed 8 Sep 2026.
2. Bajaj Broking, issue table and restated financials — accessed 8 Sep 2026.
3. Business Today, open-day broker notes (38.6x, 28x EV/EBITDA) — accessed 8 Sep 2026.
4. IPO Central, Day-1 subscription at 12:03 IST — accessed 8 Sep 2026.
5. Trade Brains, alternate ₹653.84 crore FY26 revenue — accessed 8 Sep 2026.

Full working file: docs/ipo_analysis/kanohar_electricals.md.

Disclaimer

AlphaResearch is not a SEBI-registered investment adviser or research analyst. This article is educational analysis based on publicly available information and is not investment advice or a recommendation to buy, sell, hold, subscribe to or avoid any security. Figures are taken from the sources listed above and may contain errors; verify them in the original filings. Investing in securities involves risk, including loss of principal. Consult a SEBI-registered adviser before making investment decisions.

Position disclosure: none.