Kanohar Electricals IPO allotment today: GMP at 38% — check status on BSE, NSE and registrar

As per the latest business developments, The allotment of shares in Kanohar Electricals' Rs 1,055.74-crore initial public offering (IPO) is anticipated to be finalised today, September 11, after the offering received firm demand from market participants during its three-day bidding period.

The IPO was subscribed 90.59 times by the close of bidding on September 10, according to NSE data. Market participants placed bids for 105.92 crore equity shares against 1.17 crore shares on offer. Qualified institutional buyers (QIBs) led the demand with 215.37 times subscription, while the non-institutional investor (NII) portion was subscribed 87.74 times and the retail portion 20.50 times.

The IPO opened on September 8 and closed on September 10. The price range was set at Rs 601-632 per share, with a lot size of 23 shares. At the upper end of the price range, retail market participants needed to invest Rs 14,536 for one lot. The shares are scheduled to list on the BSE and NSE on September 16.

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Kanohar Electricals shares continued to command a firm premium in the grey market ahead of the allotment. According to InvestorGain, the latest GMP stood at Rs 240 per share, as of September 11. At the upper end of the IPO price range of Rs 632, this implies an indicative stock-exchange debut price of around Rs 872, or a potential premium of around 38 percent.

GMP figures are unofficial and based on activity in the unregulated grey market. They can change before stock-exchange debut and should not be treated as a guarantee of the actual stock-exchange debut price or returns.

How to check Kanohar Electricals IPO allotment status

Market participants can check their Kanohar Electricals IPO allotment status through MUFG Intime India, the registrar to the offering, as well as the BSE and NSE websites. The basis of allotment is scheduled for September 11, while demat credit is anticipated on September 15.

Kanohar Electricals IPO allotment status via MUFG Intime India

Step 1. Visit the MUFG Intime IPO application status page at https://in.mpms.mufg.com/Initial_Offer/public-issues.html

Step 2. Select Kanohar Electricals from the firm dropdown.

Step 3. Enter your PAN, application number or DP/Client ID.

Step 4. Submit the details to view the allotment status.

Kanohar Electricals IPO allotment status via BSE

1. Visit the BSE IPO application status page at https://www.bseindia.com/market participants/appli_check

2. Select Equity as the offering type.

3. Select Kanohar Electricals from the offering list.

4. Enter your application number or PAN and submit the details.

Kanohar Electricals IPO allotment status via NSE

Step 1. Visit the NSE IPO bid/allotment verification page at https://www.nseindia.com/invest/check-trades-bids-verify-ipo-bids

Step 2. Select Equity & SME IPO bid details.

Step 3. Choose KANOHAR from the symbol dropdown.

Step 4. Enter your PAN or application number and submit the details.

The Rs 1,055.74-crore IPO comprises a fresh offering of 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 price range, the OFS component is worth around Rs 755.74 crore.

The offering had a face value of Rs 2 per share. Under the reservation structure, up to 50 percent of the net offering was reserved for QIBs, at least 15 percent for NIIs and at least 35 percent for retail market participants.

Ahead of the public offering, Kanohar Electricals boosted Rs 316.72 crore from anchor market participants. The firm allotted 50,11,424 shares at Rs 632 apiece.

The anchor book attracted 42 financial institutions from India and overseas. Participants included Ashoka Whiteoak ICAV – Ashoka Whiteoak Emerging Markets Equity Fund, Allianz Global market participants Fund – Allianz India Equity, HSBC Global Investment Funds – Asia Ex Japan Equity Smaller Firms, VQ FasterCap Fund and HDFC Life Insurance Firm.

Kanohar Electricals plans to use Rs 64.1 crore from the fresh offering towards capital expenditure. This includes 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 Rs 155 crore has been earmarked for incremental working capital requirements. The balance of the fresh offering proceeds will be used for general corporate purposes.

The firm has manufacturing facilities in Meerut, Uttar Pradesh, and is engaged in the manufacture of power transformers and related electrical equipment. Its manufacturing capacity has expanded to 19,200 MVA per annum for electrical transformers of up to 400 kV.

The IPO opened on September 8 and closed on September 10. The basis of allotment is scheduled for September 11, followed by refunds and demat credit before the anticipated stock-exchange debut on September 16.

Nuvama Wealth Management and IIFL Capital Services are the book-running lead managers, while MUFG Intime India Private Limited is the registrar to the offering.