Kanohar Electricals Shares Jump Over 8% In Market Debut Trade

Shares of transformer manufacturer Kanohar Electricals Ltd on Wednesday listed with a premium of over 8% against the issue price of ₹632.

The stock started trading at ₹672.05, up 6.33% from the issue price on the BSE.

At the NSE, the stock made its market debut at ₹685.50, a premium of 8.46%.

The company's market valuation stood at ₹5,889.12 crore.

The ₹1,056 crore initial share sale of Kanohar Electricals was subscribed 90.59 times on the final day of bidding on Thursday last week.

The company had fixed a price band of ₹601-632 per share for its IPO.

Kanohar Electricals Ltd had raised ₹317 crore from anchor investors. The ₹1,056 crore IPO had a fresh issue of shares worth up to ₹300 crore and an offer for sale of up to 1.2 crore shares, valued at ₹756 crore at the higher end of the price band, by promoter K Sons Family Trust.

The company plans to use ₹64.1 crore from the fresh issue towards capital expenditure requirements, including purchasing machinery and equipment for its Gangol manufacturing facility, expanding and automating backward integration facilities, civil construction and interior development of an office building, and sustainability initiatives.

Another ₹155 crore will be used to fund incremental working capital requirements, with the remaining proceeds earmarked for general corporate purposes.

Kanohar Electricals is one of the leading domestic transformer manufacturers, catering to sectors, including power transmission, railways, renewable energy and power distribution.

The company operates through two segments -- transformer manufacturing and Engineering, Procurement and Construction (EPC).

Its EPC business includes turnkey projects for substations and transmission lines, as well as the installation of air-insulated and gas-insulated substations, bay augmentation and transmission lines.