DRHP Link: KanoharDRHP_20260124052733.pdf

MUMBAI/ NATIONAL, 27 JANUARY 2026 (SACHIN MURDESHWAR 📞 8108510506) Meerut-based Kanohar Electricals Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The offer, with a face value of Rs 2, is a mix of fresh issue of shares up to Rs 300 crore and an offer-for-sale up to 14,590,000 shares by promoters – K Sons Family Trust.

From the proceeds of its fresh issuance worth Rs 300 crore, Rs 130 crore will be used for funding the incremental working capital requirements of the company.

The company will utilise Rs 66.74 crore in funding the capital expenditure requirements of the company towards, purchase of new machinery and equipment for their Gangol manufacturing facility for increasing the company’s transformer manufacturing capacity, expanding and automating the company’s backward integration facilities and enhancing operational efficiency,  civil construction and interior development of an office building at their Gangol manufacturing facility, enhancing company’s sustainability initiatives by (a) setting up of solar power plants at their Manufacturing Facilities, and purchasing Electric Vehicles for handling and movement at their Gangol manufacturing facility and General corporate purpose.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

About The Company

The company is one of the leading domestic players in transformer manufacturing in terms of revenue in Fiscal 2025. The company cater to high growth industries such as power transmission, railways, renewable energy, and power distribution as per the CARE Report.

As on September 30, 2025, the company is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry (Source: CARE Report). The company is also one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers, both of which cater to the demand for rail network electrification from the Indian Railways as per the CARE Report.

The company conduct short circuit testing of the company’s transformers at a scale and as on September 30, 2025, have tested over 200 ratings, including, for 500 MVA and 400 kV transformers.

This is observed from an increase in the company’s sales of 500 MVA 400 kV power transformers in Fiscal 2025 and the recent Rs 568.69 crore order for 500 MVA 400 kV power transformers from India’s largest electricity transmission company, Power Grid Corporation of India Limited (POWERGRID) in June 2025 (Source: CARE Report).

In 2013, in an endeavour to increase the company’s total addressable market in the power transmission and power distribution sectors, the company also entered the EPC Business for substations and in 2021 forayed into transmission lines up to 400 kV class.

The company’s EPC Business services for substations include turnkey installation of air and gas insulated substations and bay augmentation in existing substations up to 400kV class, and turnkey installation of transmission lines across 132 kV, 220 kV and 400 kV.

Certain key customers for whom the company have executed EPC projects include central and state utilities in the states of Delhi, Himachal Pradesh, Maharashtra and Rajasthan. As per the CARE report, the company entered into the collaboration agreement with CHEM in 2017, whereunder the company manufactured and supplied up to 252 kV GIS bays from their Gangol manufacturing facility to transmission utilities of Uttarakhand and Himachal Pradesh.

The company’s consolidated revenue from operations increased to Rs 450.61 crore during Fiscal 2025 from Rs 303.77 crore during Fiscal 2023.

The company’s profit after tax was Rs 65.12 crore during FY25 vis-à-vis Rs 16.81 crore during FY23. crore.

Nuvama Wealth Management Limited, IIFL Capital Services Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.