Kanohar Electricals IPO: 35% GMP & 11x Subscription — Should You Apply?

By Shefali Rana | BizGossips.in

The Kanohar Electricals IPO is attracting serious attention in India’s primary market. On the final day of bidding, the ₹1,055.74-crore issue was already subscribed 11.02 times by 10:10 AM on September 10, while its grey market premium (GMP) stood at around 35.13%.

On the surface, it looks like a strong IPO story. But before investors chase the GMP, there is a bigger question:

Are investors backing Kanohar Electricals’ business—or simply chasing a potentially strong listing gain?

Subscription Numbers Are Sending a Strong Signal

Investor interest has been particularly strong among non-institutional investors.

By 10:10 AM on September 10, the NII portion was subscribed 21.77 times, while the retail portion was subscribed 8.94 times. Overall, the issue received bids for more than 12.88 crore shares against 1.17 crore shares on offer.

Groww’s data around 10:12 AM showed similar momentum, with overall subscription at 11.10 times, NII at 22.08 times, retail at 8.97 times and QIB subscription at 6.59 times.

The demand is clearly visible. But high subscription doesn't automatically mean an attractive valuation.

35% GMP Looks Tempting—But Don’t Treat It as Guaranteed

At the upper price band of ₹632 per share, a GMP of around 35.13% suggests an implied grey-market price of approximately ₹854.

That is certainly attractive for investors focused on listing gains.

However, GMP is an unofficial market indicator, not a guaranteed listing price. It can move sharply depending on market sentiment and demand.

In simple terms, the much-discussed 35% gain exists in the grey market—not necessarily in an investor’s demat account.

The IPO Structure Deserves Attention

Kanohar Electricals is raising ₹1,055.74 crore, but only ₹300 crore is a fresh issue. The remaining ₹755.74 crore is an Offer for Sale (OFS) by K Sons Family Trust.

This means a significant portion of the IPO proceeds will effectively provide an exit opportunity to an existing shareholder rather than going directly into the company.

The fresh issue proceeds are intended for capital expenditure, working capital, and general corporate purposes. Around ₹64.1 crore is earmarked for capital expenditure and ₹155 crore for incremental working capital.

That doesn't necessarily make the IPO negative, but investors should understand where their money is going.

Fundamentals Are Improving

Kanohar Electricals is not merely a GMP-driven story.

The company reported ₹653.84 crore in revenue from operations in FY26, up from ₹450.61 crore in FY25. EBITDA rose to ₹180.42 crore from ₹93.39 crore, while profit after tax nearly doubled to ₹129.73 crore from ₹65.12 crore.

The company also operates across areas linked to power transmission, distribution, railways and renewable energy, giving it exposure to sectors where infrastructure spending could support demand.

But strong financial growth brings another question:

How much of this growth is already priced into the IPO?

BizGossips Take: Business First, GMP Second

Kanohar Electricals has three things investors usually like to see: strong subscription, improving financial performance, and exposure to growing infrastructure-related sectors.

But the 35% GMP should not become the entire investment thesis.

When an IPO is heavily oversubscribed, and the grey market starts celebrating, it becomes easy to focus on listing gains and ignore valuation, risks, and long-term fundamentals.

Kanohar Electricals may deliver a strong listing. Whether it becomes a strong long-term investment is an entirely different question.

The shares are tentatively scheduled to list on BSE and NSE on September 16, 2026, subject to the IPO schedule.

Disclaimer

This article is based on publicly available information and is intended for informational and editorial purposes only. It does not constitute investment, financial, or securities advice or a recommendation to buy or sell any security. IPO subscription figures and GMP can change, and grey-market premiums are unofficial indicators. Investors should independently evaluate the company’s financials, valuation, risks, and offer documents and consult a SEBI-registered investment adviser before making any investment decision.