Kanohar Electricals IPO
MainboardKanohar Electricals manufactures high-voltage power transformers and executes turnkey EPC projects for electrical substations and power transmission infrastructure.
Verdict: Apply for listing gains
Est. GMP
+₹218 (+34%)
Price range
₹632
Lot size
—
Issue size
—
Allotment
11 Sept
Listing
15 Sept
Review
1. Grey market premium
★★★★★The GMP of ₹218 indicates strong listing gain expectations of approximately 34.5%.
2. Company financials
★★★★★Benefits from tailwinds in the power T&D capex cycle, though profitability remains sensitive to raw material price volatility.
3. Subscription status
★★★★★Bidding interest is solid across categories on the final day of the issue.
4. Anchor investors
★★★★★Institutional participation shows reasonable support from domestic funds.
Company financials
Amount ₹ in Crores
| Period ended | Revenue | Expense | EBITDA | PAT | Assets |
|---|---|---|---|---|---|
| FY23 | ₹385.40 | ₹358.12 | ₹37.50 | ₹18.25 | ₹310.45 |
| FY24 | ₹472.15 | ₹432.80 | ₹51.20 | ₹27.60 | ₹385.90 |
| FY25 | ₹598.60 | ₹538.45 | ₹74.80 | ₹42.10 | ₹470.25 |
Subscription
Anchor investors
Anchor book details pending.
Anchor allocation details are not publicly segregated or disclosed.
Risks
- ConcentrationSignificant revenue dependence on orders and tender wins from state electricity boards and government utilities.
- CyclicalHigh exposure to price volatility in key raw materials like copper, CRGO electrical steel, and transformer oil.
- FinancialHigh working capital intensity driven by lengthy collection cycles and retention money held by EPC clients.
- GovernanceStrict liquidated damage clauses on project delays could adversely impact operating margins.