Kanohar Electricals Ltd IPO
Status: Closed
Overview
IPO date
08 Sept 2026 to 10 Sept 2026
Face value
₹ 2 per share
Price
₹ 601 to ₹632 per share
Issue Size
16,704,750 shares
(aggregating up to ₹ 1055.74 Cr)
(aggregating up to ₹ 1055.74 Cr)
Allotment Date
11 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Capital Goods - Electrical Equipment
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T&C*
Strengths vs Risks of Kanohar Electricals Ltd
Know the pros & cons
Strengths
- Established player in the transformer manufacturing sector catering to high growth industries.
- Successful short circuit testing of transformers up to 500 MVA 400 kV which enables us to compete for large, high-value contracts across sectors.
- Comprehensive presence across our Transformer Manufacturing Business and EPC Business enabling us to serve a large total addressable market.
- Integrated manufacturing facilities equipped to deliver high-quality products.
- Track record of executing orders for large and marquee clients.
- Experienced Promoters and management team with significant industry experience.
- Track record of profitability.
Risks
- The company derives a significant portion of its revenue from the Transformer Manufacturing Business. A reduction in demand for purchase of transformers could adversely affect the company's business, results of operations and financial condition.
- A significant portion of the company's revenue from operations is from its Transformer Manufacturing Business which is attributable to high growth sectors including the power transmission, railways and renewable energy sectors. Any economic cyclicality coupled with reduced demand or negative trend in these or other sectors that the company operates in, could have material adverse effect on its business, financial condition and results of operations.
- Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its manufacturing capacities could have an adverse effect on the company's business, future prospects and future financial performance.
- The company depends on certain customers for a significant portion of its revenue from operations. In the Fiscals 2026, 2025 and 2024, the company's top 10 customers contribution towards its revenue from operations was 93.16%, 93.88%, and 95.43%, respectively. Any decrease in demand from such customers, the loss of such customers or the company's inability to diversify its customer base could have an adverse effect on the company's business, financial condition and results of operations.
- If the company is unable to raise additional working capital or are unable to obtain financing on favourable terms or at all, its business and growth could be adversely affected.
- In the company's Transformer Manufacturing Business, its derives a significant portion of the company's revenue from the supply of power transformers to transmission utilities including state transmission companies in the power transmission sector. Additionally, its Transformer Manufacturing Business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to Government policies. Any economic downturn or change in government policy may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- A significant portion of the company's revenue is dependent on tenders being awarded by the government-controlled entities, which follow tendering process for determination of their suppliers. Government bids are procured through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, the company may not always be able to possess and maintain its pre-qualification capability for the company's Transformer Manufacturing Business and EPC Business. Its may be adversely affected if the company does not succeed in all or a majority of the contracts that its tender for.
- The company is exposed to the risk of disqualification, suspension, or blacklisting by government authorities, which could prevent it from bidding for or executing government projects. Any such action could restrict the company access to a substantial part of its revenue base and have a disproportionate adverse impact on the company's business, results of operations, cash flows, and reputation.
- A significant portion of the company's revenue is generated from its Manufacturing Facilities, notably the company's Gangol Manufacturing Facility, situated in Meerut, Uttar Pradesh. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
- As on date of this Red Herring Prospectus, 34 public Shareholders of the Company who collectively hold 208,000 Equity Shares are currently untraceable. Further, 156,000 Equity Shares issued to such Shareholders pursuant to a bonus issue on September 19, 2025, along with the Equity Shares previously held by them in the Company, have not been credited to their demat accounts as the company has been unable to establish contact with them, and have been credited to a demat suspense account.
- The company's business is largely concentrated in India and focused in the states of Rajasthan, Punjab, Gujarat, Bihar, Madhya Pradesh, Uttar Pradesh, Karnataka, Maharashtra, Jharkhand and Assam. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
- The company's business is dependent on suppliers to procure its raw materials. Further, the company has not entered into long-term agreements with these suppliers, variations in supply and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition and results of operations.
- The company is subject to time and cost overruns and is exposed to claims, penalties and damages resulting from delays in execution of EPC projects for transmission lines and substations. These contracts have long execution periods as a result of which, project related estimated costs and revenue estimates may vary from the actual costs incurred and actual revenues generated which could have material adverse effect on the company's business, financial condition and results of operations.
- The company Order Book may not be representative of its future results and the company's actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company's business, financial condition and results of operations.
- The auditor's report on the company's financial statements for the Fiscals 2026, 2025 and 2024, contains certain observations issued under Companies (Auditor's Report) Order, 2020.
- The company's historical performance may not be indicative of its future growth or financial results and if the company fails to manage its growth, the company may not be successful in implementing its strategies, which could materially and adversely affect the company's business, financial condition, results of operations and prospects.
- The company's Transformer Manufacturing Business operations are significantly dependent on its Manufacturing Facilities. Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company's Manufacturing Facilities could have a material adverse effect on its business, financial condition and results of operations.
- The company has entered into, and will continue to enters into, related party transactions that may involve conflicts of interest.
- The company is unable to trace some of its historical corporate records. Further, certain corporate records have errors, and certain corporate filings have been made with delays, and the company has remained non-compliant with the applicable laws for a certain period in the past. Its cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in relation to these matters, which may impact its financial condition and reputation.
- The requirements of being a listed company may strain its resources which may have a material adverse impact on the company operations.
- The company intends to utilize a portion of the Net Proceeds to fund its capital expenditure requirements. The company's inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations or financial results.
- The objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution. Any variations in the company funding requirements and the proposed deployment of Net Proceeds may affect its business and results of operations. Further, any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company's inability to make timely payment of its statutory dues may result in imposition of penalties, payment of additional interest which in turn may have an adverse affect on the company's business, its results of operations, cash flows and financial condition. The company has paid an aggregate amount of Rs. 1,293.76 million, Rs. 978.01 million, and Rs. 670.42 million towards statutory due payments for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.
- Fluctuation in cost of raw materials or any shortages, delay or disruption in the supply of the raw materials the company use in its manufacturing process due to factors beyond the company control may have a material adverse effect on its business, results of operations, cash flows and financial condition.
- The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialise, may adversely affect the company's financial condition.
- The company relies on CHEM for the technical collaboration to manufacture gas insulated switchgear ("GIS"). Should its agreement with CHEM be terminated or not be renewed at favourable terms or at all, it will impact the company's ability to manufacture GIS.
- Its business may be adversely affected if the company is unable to keep pace with technological developments and evolving industry trends in the power transmission and transformer sector.
- The company is subject to strict quality requirements, inspections and audits and any product defect issues or failures by the company and its ability to maintain quality of products or the company's raw material and component suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims by the company's customers which could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company's business is subject to strikes, work stoppages and/or increased wage demands, as well as other disputes with its employees. Such instances may cause disruptions in the company's operations, which could materially adversely affect its business, financial condition and results of operations.
- The company has requirements for power and fuel for its Manufacturing Facilities and any disruption in the supply or increase in tariff may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company relies on third party logistics providers for transportation of its products to the project site or distribution to the company's clients. Any delay or disruption or refusal by its third-party logistics providers in timely delivery of the company's products may affect its business, results of operations and cash flow adversely.
- The company has incurred indebtedness and is subject to certain restrictive covenants under the terms of its financing agreements, which may limit the company's ability to seek additional financing or undertake certain business actions. Any inability to comply with repayment obligations and/or other covenants in its financing agreements could adversely affect the company's business and financial condition.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- The Company is involved in certain outstanding legal and tax proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- If the company fails to comply with the applicable laws, regulations and rules prescribed by the Government of India and the relevant statutory or regulatory bodies or fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required for the company's business, its results of operations and cash flows may be adversely affected.
- The company operations involve activities and could result in a suspension of operations, injury to its personnel, emission of pollutants and/or the imposition of civil or criminal liabilities which could adversely affect the company's business, results of operations, cash flows and financial condition.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Any fraud, theft, or embezzlement by the company's employees, vendors or contractors could adversely affect its reputation, results of operations and financial condition. The company operations and contracts are subject to anti-corruption laws and regulations, and any failures to comply with such laws and regulations could have an adverse impact on the company's business and reputation.
- The company's insurance coverage may not be sufficient or adequate to protect it against all material hazards or the company's insurance claims under the insurance policies maintained by it will be honoured fully, which may adversely affect the company's business, financial condition and results of operations.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- The company operates in a competitive environment and its faces competition from both domestic as well as multinational corporations and the company's inability to compete effectively could result in the loss of customers, hence, its market share, which could have an adverse effect on the company's business, results of operations, financial condition and future prospects.
- The company expects to spend a significant amount of resources on product development and short circuit testing. Such efforts may not result in marketable products. Failures to successfully introduce products into the market could have a material adverse effect on the company's business, financial condition, and results of operations.
- Its may be unable to adequately protect intellectual property that the company uses and may be subject to risks of infringement claims.
- The company has experienced negative cash flows from operating, investing and financing activities in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operates its business and implement the company's growth plans, thereby affecting its financial condition.
- The company's ability to pay dividends in the future will depends on its future cash flows, working capital requirements, capital expenditures and financial condition.
- Certain non-GAAP financial measures and other statistical information relating to the company operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.
- The Company will not receive any proceeds from the Offer for Sale. The Promoter Selling Shareholder will receive the proceeds from the Offer for Sale.
- The company depends on its individual Promoters, Senior Management Personnel, Key Management Personnel and qualified and skilled personnel with technical expertise, and if the company is unable to recruit and retain senior management, qualified and skilled personnel, its business and the company's ability to operates or grow its business maybe adversely affected.
- Its Promoters, the company's Executive Directors who are also its Key Managerial Personnel are interested in the Company in addition to their remuneration and reimbursement of expenses.
- Certain of the company's Directors does not have prior experience of holding a directorship in a company listed on any stock exchange which may subject it to adverse regulatory actions if the company is not able to comply with applicable laws, resulting in an impact on the price of its Equity Shares.
- One of the company's Promoters and a member of its Promoter Group will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.
- Certain sections of this Red Herring Prospectus contain information from the CARE Report which has been commissioned by it and any reliance on such information for making an investment decision in this Offer is subject to inherent risks.
Kanohar Electricals Ltd Peer Comparison
Understand the company’s industry standing
Kanohar Electricals Ltd
Hitachi Energy India Ltd
Bharat Heavy Electricals Ltd
Face Value
2
2
2
Standalone / Consolidated
Standalone
Standalone
Consolidated
Total Income Rs. Cr.
653.84
8147.71
33782.18
EPS-Basis
17.43
221.63
4.6
EPS-Diluted
17.43
221.63
4.6
NAV Per Share
50.09
1161.56
74.99
P/E-Basic EPS
---
159.55
91.3
P/E-Diluted EPS
---
30.44
5.6
RONW(%)
34.8
19.08
6.13
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 08 Sept 2026 & closes on 10 Sept 2026.
Kanohar Electricals Limited was originally incorporated as 'Kanohar Electricals Private Limited' under the provisions of the Companies Act, 1956 pursuant to a certificate of incorporation dated November 13, 1972. The name of the Company was subsequently changed to 'Kanohar Electricals Limited' dated December 22, 1994, issued by the RoC. Company is a leading manufacturer of reliable, cost effective and high quality transformers for generation, transmission and distribution of electric power up to 500 MVA, 500kV.
Company operate two manufacturing facilities in Rithani, Meerut, Uttar Pradesh and Gangol, Meerut, Uttar Pradesh with an aggregate transformer manufacturing capacity of 19,200 MVA as on September 30, 2025. The EPC Business services for substations include turnkey installation of air and gas insulated substations and bay augmentation in existing substations up to 400kV class; and turnkey installation of transmission lines across 132 kV, 220 kV and 400 kV.
The customer base includes PSUs, state utilities, and private-sector companies. In the power transmission sector, Company has executed large and complex orders for manufacturing transformers up to 500 MVA 400 kV for central and state transmission utilities in India. Secondly, it obtained the single largest order aggregating to Rs 568.67 Cr. from India's largest electricity transmission company, Power Grid Corporation of India Limited (POWERGRID) in June 2025 for the supply of 500 MVA 400 kV power transformers. It supplied traction transformers of 30.24 MVA 132 kV and 220 kV, and Scott transformers of up to 100 MVA 220/2x55 kV and 132/2x55 kV to the Indian Railways. In the power distribution sector, Company has supplied distribution transformers of up to 5.5 MVA and 33 kV to Bhutan Power Corporation Limited.
In 2013, to increase the total addressable market in the power transmission and power distribution sectors, Company entered into the collaboration agreement with Chung-Hsin Electric and Machinery Manufacturing Corporation (CHEM), Taiwan in 2017, where it manufactured and supplied up to 252 kV GIS bays from our Gangol Manufacturing Facility to transmission utilities of Uttarakhand and Himachal Pradesh and further entered the EPC Business for substations and in 2022 entered into transmission lines up to 400 kV class. The Company has expanded the manufacturing capacity to 19,200 MVA per annum of electrical transformers up to 400 kV in FY25.
Company has filed a Draft Red Herring Prospectus with SEBI & is planning the IPO by raising Rs 300 Cr equity shares through fresh issue and by issuing 14,590,000 equity shares having the face value of Rs 2 each through offer for sale.
Kanohar Electricals Ltd IPO will close on 10 Sept 2026.
- Established player in the transformer manufacturing sector catering to high growth industries.
- Successful short circuit testing of transformers up to 500 MVA 400 kV which enables us to compete for large, high-value contracts across sectors.
- Comprehensive presence across our Transformer Manufacturing Business and EPC Business enabling us to serve a large total addressable market.
- Integrated manufacturing facilities equipped to deliver high-quality products.
- Track record of executing orders for large and marquee clients.
- Experienced Promoters and management team with significant industry experience.
- Track record of profitability.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Dinesh Singhal | --- | --- | --- | --- |
| 2 | Adesh Singhal | --- | --- | --- | --- |
| 3 | Vivek Singhal | --- | --- | --- | --- |
| 4 | Abhishek Singhal | --- | --- | --- | --- |
| 5 | Virat Singhal | --- | --- | --- | --- |
| 6 | Aditya Singhal | --- | --- | --- | --- |
| 7 | K Sons Family Trust | 72203991 | 97 | 60246076 | 76.08 |
| 8 | Kanohar International Private | 2028000 | 2.72 | 2028000 | 2.56 |
- The company derives a significant portion of its revenue from the Transformer Manufacturing Business. A reduction in demand for purchase of transformers could adversely affect the company's business, results of operations and financial condition.
- A significant portion of the company's revenue from operations is from its Transformer Manufacturing Business which is attributable to high growth sectors including the power transmission, railways and renewable energy sectors. Any economic cyclicality coupled with reduced demand or negative trend in these or other sectors that the company operates in, could have material adverse effect on its business, financial condition and results of operations.
- Under-utilization of the company's manufacturing capacities and an inability to effectively utilize its manufacturing capacities could have an adverse effect on the company's business, future prospects and future financial performance.
- The company depends on certain customers for a significant portion of its revenue from operations. In the Fiscals 2026, 2025 and 2024, the company's top 10 customers contribution towards its revenue from operations was 93.16%, 93.88%, and 95.43%, respectively. Any decrease in demand from such customers, the loss of such customers or the company's inability to diversify its customer base could have an adverse effect on the company's business, financial condition and results of operations.
- If the company is unable to raise additional working capital or are unable to obtain financing on favourable terms or at all, its business and growth could be adversely affected.
- In the company's Transformer Manufacturing Business, its derives a significant portion of the company's revenue from the supply of power transformers to transmission utilities including state transmission companies in the power transmission sector. Additionally, its Transformer Manufacturing Business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to Government policies. Any economic downturn or change in government policy may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- A significant portion of the company's revenue is dependent on tenders being awarded by the government-controlled entities, which follow tendering process for determination of their suppliers. Government bids are procured through competitive bidding process. Its bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, the company may not always be able to possess and maintain its pre-qualification capability for the company's Transformer Manufacturing Business and EPC Business. Its may be adversely affected if the company does not succeed in all or a majority of the contracts that its tender for.
- The company is exposed to the risk of disqualification, suspension, or blacklisting by government authorities, which could prevent it from bidding for or executing government projects. Any such action could restrict the company access to a substantial part of its revenue base and have a disproportionate adverse impact on the company's business, results of operations, cash flows, and reputation.
- A significant portion of the company's revenue is generated from its Manufacturing Facilities, notably the company's Gangol Manufacturing Facility, situated in Meerut, Uttar Pradesh. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
- As on date of this Red Herring Prospectus, 34 public Shareholders of the Company who collectively hold 208,000 Equity Shares are currently untraceable. Further, 156,000 Equity Shares issued to such Shareholders pursuant to a bonus issue on September 19, 2025, along with the Equity Shares previously held by them in the Company, have not been credited to their demat accounts as the company has been unable to establish contact with them, and have been credited to a demat suspense account.
- The company's business is largely concentrated in India and focused in the states of Rajasthan, Punjab, Gujarat, Bihar, Madhya Pradesh, Uttar Pradesh, Karnataka, Maharashtra, Jharkhand and Assam. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
- The company's business is dependent on suppliers to procure its raw materials. Further, the company has not entered into long-term agreements with these suppliers, variations in supply and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition and results of operations.
- The company is subject to time and cost overruns and is exposed to claims, penalties and damages resulting from delays in execution of EPC projects for transmission lines and substations. These contracts have long execution periods as a result of which, project related estimated costs and revenue estimates may vary from the actual costs incurred and actual revenues generated which could have material adverse effect on the company's business, financial condition and results of operations.
- The company Order Book may not be representative of its future results and the company's actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company's business, financial condition and results of operations.
- The auditor's report on the company's financial statements for the Fiscals 2026, 2025 and 2024, contains certain observations issued under Companies (Auditor's Report) Order, 2020.
- The company's historical performance may not be indicative of its future growth or financial results and if the company fails to manage its growth, the company may not be successful in implementing its strategies, which could materially and adversely affect the company's business, financial condition, results of operations and prospects.
- The company's Transformer Manufacturing Business operations are significantly dependent on its Manufacturing Facilities. Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company's Manufacturing Facilities could have a material adverse effect on its business, financial condition and results of operations.
- The company has entered into, and will continue to enters into, related party transactions that may involve conflicts of interest.
- The company is unable to trace some of its historical corporate records. Further, certain corporate records have errors, and certain corporate filings have been made with delays, and the company has remained non-compliant with the applicable laws for a certain period in the past. Its cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in relation to these matters, which may impact its financial condition and reputation.
- The requirements of being a listed company may strain its resources which may have a material adverse impact on the company operations.
- The company intends to utilize a portion of the Net Proceeds to fund its capital expenditure requirements. The company's inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations or financial results.
- The objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution. Any variations in the company funding requirements and the proposed deployment of Net Proceeds may affect its business and results of operations. Further, any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company's inability to make timely payment of its statutory dues may result in imposition of penalties, payment of additional interest which in turn may have an adverse affect on the company's business, its results of operations, cash flows and financial condition. The company has paid an aggregate amount of Rs. 1,293.76 million, Rs. 978.01 million, and Rs. 670.42 million towards statutory due payments for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.
- Fluctuation in cost of raw materials or any shortages, delay or disruption in the supply of the raw materials the company use in its manufacturing process due to factors beyond the company control may have a material adverse effect on its business, results of operations, cash flows and financial condition.
- The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialise, may adversely affect the company's financial condition.
- The company relies on CHEM for the technical collaboration to manufacture gas insulated switchgear ("GIS"). Should its agreement with CHEM be terminated or not be renewed at favourable terms or at all, it will impact the company's ability to manufacture GIS.
- Its business may be adversely affected if the company is unable to keep pace with technological developments and evolving industry trends in the power transmission and transformer sector.
- The company is subject to strict quality requirements, inspections and audits and any product defect issues or failures by the company and its ability to maintain quality of products or the company's raw material and component suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls or exposure to potential product liability claims by the company's customers which could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company's business is subject to strikes, work stoppages and/or increased wage demands, as well as other disputes with its employees. Such instances may cause disruptions in the company's operations, which could materially adversely affect its business, financial condition and results of operations.
- The company has requirements for power and fuel for its Manufacturing Facilities and any disruption in the supply or increase in tariff may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company relies on third party logistics providers for transportation of its products to the project site or distribution to the company's clients. Any delay or disruption or refusal by its third-party logistics providers in timely delivery of the company's products may affect its business, results of operations and cash flow adversely.
- The company has incurred indebtedness and is subject to certain restrictive covenants under the terms of its financing agreements, which may limit the company's ability to seek additional financing or undertake certain business actions. Any inability to comply with repayment obligations and/or other covenants in its financing agreements could adversely affect the company's business and financial condition.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- The Company is involved in certain outstanding legal and tax proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- If the company fails to comply with the applicable laws, regulations and rules prescribed by the Government of India and the relevant statutory or regulatory bodies or fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required for the company's business, its results of operations and cash flows may be adversely affected.
- The company operations involve activities and could result in a suspension of operations, injury to its personnel, emission of pollutants and/or the imposition of civil or criminal liabilities which could adversely affect the company's business, results of operations, cash flows and financial condition.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Any fraud, theft, or embezzlement by the company's employees, vendors or contractors could adversely affect its reputation, results of operations and financial condition. The company operations and contracts are subject to anti-corruption laws and regulations, and any failures to comply with such laws and regulations could have an adverse impact on the company's business and reputation.
- The company's insurance coverage may not be sufficient or adequate to protect it against all material hazards or the company's insurance claims under the insurance policies maintained by it will be honoured fully, which may adversely affect the company's business, financial condition and results of operations.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- The company operates in a competitive environment and its faces competition from both domestic as well as multinational corporations and the company's inability to compete effectively could result in the loss of customers, hence, its market share, which could have an adverse effect on the company's business, results of operations, financial condition and future prospects.
- The company expects to spend a significant amount of resources on product development and short circuit testing. Such efforts may not result in marketable products. Failures to successfully introduce products into the market could have a material adverse effect on the company's business, financial condition, and results of operations.
- Its may be unable to adequately protect intellectual property that the company uses and may be subject to risks of infringement claims.
- The company has experienced negative cash flows from operating, investing and financing activities in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operates its business and implement the company's growth plans, thereby affecting its financial condition.
- The company's ability to pay dividends in the future will depends on its future cash flows, working capital requirements, capital expenditures and financial condition.
- Certain non-GAAP financial measures and other statistical information relating to the company operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies.
- The Company will not receive any proceeds from the Offer for Sale. The Promoter Selling Shareholder will receive the proceeds from the Offer for Sale.
- The company depends on its individual Promoters, Senior Management Personnel, Key Management Personnel and qualified and skilled personnel with technical expertise, and if the company is unable to recruit and retain senior management, qualified and skilled personnel, its business and the company's ability to operates or grow its business maybe adversely affected.
- Its Promoters, the company's Executive Directors who are also its Key Managerial Personnel are interested in the Company in addition to their remuneration and reimbursement of expenses.
- Certain of the company's Directors does not have prior experience of holding a directorship in a company listed on any stock exchange which may subject it to adverse regulatory actions if the company is not able to comply with applicable laws, resulting in an impact on the price of its Equity Shares.
- One of the company's Promoters and a member of its Promoter Group will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.
- Certain sections of this Red Herring Prospectus contain information from the CARE Report which has been commissioned by it and any reliance on such information for making an investment decision in this Offer is subject to inherent risks.
The Issue type of Kanohar Electricals Ltd is Book Building.
The minimum application for shares of Kanohar Electricals Ltd is 23.
The total shares issue of Kanohar Electricals Ltd is 16704750.
Initial public offering of up to 16,704,750 equity shares of face value of Rs. 2 each ("Equity Shares") of Kanohar Electricals Limited ("Company" or "Issuer") for cash at a price of Rs. 632 per equity share (including a share premium of Rs. 630 per equity share) ("Offer Price") aggregating up to Rs. 1055.74 Crores (the "Offer") comprising of a fresh issue of up to 4,746,835 equity shares of face value of Rs. 2 each aggregating up to Rs. 300.00 Crores ("Fresh Issue") and an offer for sale of up to 11,957,915 equity shares of face value of Rs. 2/- each ("Offered Shares") aggregating up to Rs. 755.74 Crores by K Sons Family Trust ("promoter selling shareholder" and such equity shares offered by the promoter selling shareholder, the "offered shares"). The offer shall constitute [*]% of the post-offer paid up equity share capital of the company.
Price Band: Rs. 632/- per equity share of face value of Rs. 2 each.
The floor price is 316 times the face value of the equity shares.
Bids can made for a minimum of 23 equity shares of face value of Rs. 2 each and in multiples of 23 equity shares of face value of Rs. 2 each thereafter.