Kanohar Electricals IPO Day 2: Subscription Soars to 10x with GMP Indicating 35% Premium—Should You Invest?

The Kanohar Electricals IPO has gained significant traction, having been subscribed 10.22 times overall as of the second day of bidding, with retail investors showing a particularly strong appetite, as evidenced by a 3.30 times subscription in the Retail Individual Investors (RII) category. The issue comprises a fresh issue of 47.47 lakh shares and an offer for sale (OFS) of 1.20 crore shares, with the total issue amounting to Rs 1,055.74 crore. Priced between Rs 601 and Rs 632 per share, the IPO is accessible for retail investors with a minimum investment of Rs 14,536 for one lot of 23 shares. The subscription period runs from September 8 to September 10, 2026, while the listing is planned for September 16, 2026, on both the NSE and BSE.

The grey market sentiment surrounding the Kanohar Electricals IPO has been very optimistic, with the current Grey Market Premium (GMP) standing at around 35%, equating to a premium of Rs 218 per share over the upper price of Rs 632. This suggests an estimated listing price around Rs 850 per share, indicating strong market interest and positive investor sentiment ahead of its stock market debut. This robust demand reflects confidence in the company’s growth prospects, bolstered by recent financial performance showing a nearly doubling of profit from Rs 65.12 crore in FY25 to Rs 129.73 crore in FY26.

For Indian investors, the Kanohar Electricals IPO presents a compelling investment opportunity, especially given the company’s robust fundamentals and growth trajectory in the power transmission and distribution sector. However, potential investors should remain cautious of the inherent risks associated with customer concentration and reliance on government contracts. Despite these concerns, market analysts have generally recommended a “Subscribe – Long Term” rating, considering the premium valuation justified by Kanohar’s growth and order pipeline amidst favorable industry conditions.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)