Transformer manufacturer Kanohar Electricals has raised Rs 317 crore from anchor investors ahead of its Rs 1,056 crore initial public offering (IPO), which opened for subscription on September 8.
The company allotted 50.11 lakh equity shares to 42 anchor investors at Rs 632 apiece, the upper end of its IPO price band. The anchor book included ICICI Prudential Mutual Fund, Ashoka Whiteoak Emerging Markets Equity Fund, Allianz Global Investors Fund, HSBC Global Investment Funds, HDFC Life Insurance Company, Kotak Mutual Fund, Mirae Asset Mutual Fund and Motilal Oswal Mutual Fund.
The public issue will remain open until September 10, with shares priced in a band of Rs 601-632 apiece.
IPO Includes Rs 300 Crore Fresh Issue
The Rs 1,056 crore offering consists of a fresh issue of shares worth up to Rs 300 crore and an offer for sale (OFS) of up to 1.2 crore shares by promoter K Sons Family Trust. At the upper end of the price band, the OFS is valued at Rs 756 crore.
Of the fresh proceeds, Rs 64.1 crore is proposed to be deployed towards capital expenditure. This includes purchasing machinery and equipment for the company's Gangol manufacturing facility, expanding and automating backward integration facilities, civil construction and interior development of an office building, and sustainability-related initiatives.
Another Rs 155 crore has been earmarked to meet incremental working capital requirements, while the balance will be used for general corporate purposes.
Revenue More Than Doubles Between FY24 And FY26
Kanohar Electricals manufactures transformers for sectors including power transmission, distribution, railways and renewable energy. Its operations are divided into transformer manufacturing and Engineering, Procurement and Construction (EPC).
The EPC business undertakes turnkey substation and transmission-line projects. Its capabilities include installation of air-insulated and gas-insulated substations, bay augmentation and transmission lines.
The company's revenue from operations increased to Rs 653.83 crore in FY26 from Rs 276.6 crore in FY24. Over the same period, net profit climbed to Rs 129.7 crore from Rs 17.7 crore.
The IPO comes as the company looks to expand manufacturing capacity, strengthen backward integration and support its working capital requirements while serving demand across India's power and renewable energy infrastructure sectors.