Meerut-based transformer manufacturer Kanohar Electricals has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Kanohar Electricals IPO aims to raise ~INR 300 crore through a combination of fresh issue and offer for sale. Nuvama Wealth Management and IIFL Capital are appointed as the book-running lead managers to the issue, while MUFG Intime is the registrar of the issue.
Kanohar Electricals IPO: Business Overview
Founded in 1972, Kanohar Electricals is a veteran player in India’s transformer manufacturing space, headquartered in Meerut, Uttar Pradesh. Kanohar operates two manufacturing facilities at Rithani and Gangol, with a combined annual transformer manufacturing capacity of 19,200 MVA as of September 2025. The promoter group includes the K Sons Family Trust (holding 97% of pre-offer equity), along with members of the Singhal family.
Kanohar Electricals IPO Details
- Type: Fresh Issue and Offer for Sale (OFS)
- Total Offer Size: Up to INR 300 crore Fresh + OFS of 1.46 crore equity Shares
- Book Running Lead Managers:
- Nuvama Wealth Management
- IIFL Capital Services
- Registrar to the Offer: MUFG Intime India
Utilisation of Net Proceeds
The company plans to deploy the net proceeds from the fresh issue towards:
- Capital Expenditure – INR 66.74 crore for:
- Purchase of new machinery at Gangol facility to expand transformer capacity
- Civil and interior development for a new office building
- Sustainability initiatives, including solar power plants and electric vehicles for material handling
- Working Capital Requirements – INR 130 crore
- General Corporate Purposes – Balance
Operational and Financial Performance
| Particulars | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 303.77 | 276.69 | 450.61 | 165.59 |
| EBITDA | 28.36 | 31.07 | 93.39 | 42.73 |
| PAT | 16.81 | 17.76 | 65.12 | 30.67 |
| EBITDA Margin (%) | 9.34 | 11.23 | 20.73 | 25.81 |
| PAT Margin (%) | 5.48 | 6.32 | 14.24 | 17.98 |
Key Ratios (FY25):
- ROE: 30.92%
- ROCE: 47.61%
- Debt/Equity: 0.13x
- Order Book (FY25): INR 861.47 crore, up 44% YoY
- Order Book as of Sep 2025: INR 1,635.56 crore
Kanohar Electricals IPO: Business Segments
- Transformer Manufacturing Business (85% of FY25 revenue)
The company produces five categories of transformers—power, traction, Scott, shunt reactors, and distribution transformers. It introduced Scott transformers in FY25, securing key certifications from RDSO (Railways) and CPRI (Power Transmission). - EPC Business (15% of FY25 revenue)
Provides turnkey substation and transmission line solutions up to 400 kV, complementing its transformer business.
Kanohar Electricals Order Book & Customer Profile
- Total Order Book (as of Sep 30, 2025): INR 1,635.56 crore
- Government Sector Orders: 95.6% of total
- Private Sector Orders: 4.4%
- Major Clients: Power Grid Corporation of India, Indian Railways, Bhutan Power Corporation, Blue Star, and various state utilities
The company secured a major INR 568.67 crore order from POWERGRID in June 2025 for 500 MVA 400 kV transformers, underscoring its competitive position in high-voltage segments.
Competitive Strengths
- Established Market Position: Over 40 years in transformer manufacturing with proven expertise across power, railways, and renewable sectors.
- Technological Edge: One of only five Indian firms certified for short circuit testing of 500 MVA 400 kV transformers.
- Backward Integration: In-house production of transformer tanks and radiators ensures cost control and quality assurance.
- Diverse Product Portfolio: From power to traction and Scott transformers, serving both public and private clients.
- Experienced Leadership: Led by IIT alumni with deep sectoral experience.
Strategic Focus
Kanohar Electricals plans to leverage India’s transmission and renewable energy expansion by:
- Increasing annual manufacturing capacity by an additional 18,000 MVA
- Investing in automation and testing infrastructure
- Enhancing in-house radiator manufacturing
- Exploring new product lines including 765 kV ultra-high voltage transformers and V-connected auto-transformers for high-speed rail projects
Industry Outlook
According to the CARE Report cited in the DRHP, India’s transformer market is projected to grow at a 6.7% CAGR between CY24–CY30, reaching USD 6.8 billion (~INR 62,300 crore), driven by renewable integration, rail electrification, and grid modernisation. High-voltage transformer segments (>400 kV) are expected to expand rapidly at over 9% CAGR, benefiting established manufacturers like Kanohar Electricals.
Conclusion
Kanohar Electricals IPO DRHP filing signals a significant expansion phase for the Meerut-based manufacturer. With a solid order book, strong promoter backing, and industry certifications positioning it in a premium technical bracket, the company is set to capitalise on India’s accelerating power and infrastructure build-out.
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