Kanohar Electricals Limited IPO Analysis

1. IPO Snapshot

2. IPO Details

3. Issue Reservation

4. IPO Lot Size

5. About the Company

Kanohar Electricals Limited was originally incorporated as Kanohar Electricals Private Limited in Meerut, Uttar Pradesh, in 1972. It was converted into a public limited company in 1994. Its equity shares were listed in 1995 on BSE, the Delhi Stock Exchange and the Uttar Pradesh Stock Exchange, and were subsequently voluntarily delisted in 2010 due to low liquidity and trading volumes.

The Company operates two manufacturing facilities at Rithani and Gangol in Meerut, Uttar Pradesh. As of March 31, 2026, the aggregate transformer manufacturing capacity was 19,200 MVA. The facilities are ISO-certified and include in-house testing laboratories accredited by the National Accreditation Board for Testing and Calibration Laboratories.

Its Transformer Manufacturing Business covers power transformers, traction transformers, Scott transformers, shunt reactors and distribution transformers. The EPC Business undertakes turnkey projects for substations and transmission lines. Substation work includes air- and gas-insulated substations and bay augmentation up to 400 kV class; transmission-line work covers 132 kV, 220 kV and 400 kV.

6. Restated Financial Information

Consolidated Statement of Profit & Loss

Consolidated Balance Sheet

Consolidated Cash Flow Statement

7. Key Performance Indicators

8. IPO Valuation

9. Peer Comparison

• Kanohar P/E and P/B are shown as a range based on the ₹601–₹632 IPO price band.

10. Shareholding & Capital Structure

11. Objects of the Issue

12. OFS / Selling Shareholder

13. Key Risks Highlighted in the RHP

• Business / Capacity: Capacity utilisation may be affected by customer demand, uninterrupted operations, raw-material availability and market conditions. Prolonged under-utilisation could impact operational efficiency and financial performance.

• Customer Concentration: The top 10 customers contributed 93.16%, 93.88% and 95.43% of revenue from operations in FY2026, FY2025 and FY2024, respectively. Loss of or reduced demand from major customers could materially affect revenue and results.

• Supplier / Raw Materials: The Company depends on suppliers for copper conductors, CRGO steel, transformer oil and other inputs. The top 10 suppliers accounted for 71.49%, 70.65% and 63.03% of raw-material and component purchases in FY2026, FY2025 and FY2024, respectively.

• Geographic Concentration: Revenue is spread across several Indian states, including Rajasthan, Punjab, Gujarat, Bihar, Madhya Pradesh, Uttar Pradesh, Karnataka, Maharashtra, Jharkhand and Assam. Regional disruptions or weaker demand could affect operations.

• EPC / Execution: EPC projects may face delays, cost overruns, right-of-way or approval issues, adverse weather, labour shortages, logistics challenges and payment delays. The existing Order Book may not necessarily translate directly into revenue or margins.

• Technology / Innovation: The Company needs to continually upgrade technology and develop products in line with industry standards. Product innovation requires investment in R&D, testing and certification.

• Financial / Working Capital: Operating cash flows may fluctuate depending on project execution and working-capital requirements. The Company reported negative operating cash flow in FY2024 and negative investing cash flows in all three disclosed years.

• Debt / Liquidity: The Company has borrowings and financial commitments. Insufficient capital resources or inability to obtain financing could affect operations and planned expansion.

• Intellectual Property: The Company relies on trademarks and confidentiality measures and does not hold patents over its product formulae. Future infringement or IP-protection disputes could result in additional costs and management distraction.

• Legal / Regulatory: The RHP discloses outstanding legal and tax proceedings as well as historical corporate-law non-compliances for which adjudication applications were filed. The Company states that these lapses were subsequently rectified.

• Offer / Listing: The Company was previously listed and voluntarily delisted in 2010 due to low liquidity and trading volumes. The RHP states that there can be no assurance of active or sustained trading following the proposed relisting.

• Ownership: K Sons Family Trust and Kanohar International Private Limited collectively held 99.72% of the pre-Offer paid-up share capital. These shareholders are expected to continue exercising significant influence after the Offer.

• Historical Records / Compliance: Some historical corporate records cannot be traced, while certain records and filings contained errors or delays. The RHP also notes past non-compliances that were subsequently rectified.

14. Litigation & Contingent Liabilities

15. Registrar

16. Lead Manager(s)

17. Company Contact Details