Kanohar Electricals IPO opens tomorrow at ₹601-632 price band; Anand Rathi recommends subscribe for long term

The Kanohar Electricals IPO will commence public subscription on September 8, 2026, within a price range of ₹601-632 per share. The ₹1,056-crore offering includes up to ₹300 crore from a fresh share issuance and an offer-for-sale of up to 1.2 crore shares by the K Sons Family Trust. If the higher end of the band is reached, the latter could amount to ₹756 crore.

The company intends to utilize ₹64.1 crore from the fresh issue for capital expenditure, encompassing machinery purchases, facility expansion, and sustainability projects. ₹155 crore will address increased working capital needs, with the remainder reserved for general corporate use. Lead managers include Nuvama Wealth Management and IIFL Capital Services, with MUFG Intime India serving as registrar.

Anand Rathi of Anand Rathi recommends a long-term subscribe rating for the issue, citing strong recent growth and profitability. The firm has reported a 53.7% compound annual growth rate (CAGR) in revenue and 141.0% CAGR in EBITDA over the past three fiscal years. With an order book valued at ₹18,183 million as of FY26, the company's integrated manufacturing capabilities and diverse transformer offerings are poised to capitalize on India's infrastructure development.

However, Anand Rathi highlights customer concentration, reliance on transformer manufacturing, and government orders as factors to temper valuation expectations.