Meerut-based Kanohar Electricals Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The offer, with a face value of Rs 2, is a mix of fresh issue of shares up to Rs 300 crore and an offer-for-sale up to 14,590,000 shares by promoters – K Sons Family Trust.

From the proceeds of its fresh issuance worth Rs 300 crore, Rs 130 crore will be used for funding the incremental working capital requirements of the company.

The company will utilise Rs 66.74 crore in funding the capital expenditure requirements of the company towards, purchase of new machinery and equipment for their Gangol manufacturing facility for increasing the company’s transformer manufacturing capacity, expanding and automating the company’s backward integration facilities and enhancing operational efficiency,  civil construction and interior development of an office building at their Gangol manufacturing facility, enhancing company’s sustainability initiatives by (a) setting up of solar power plants at their Manufacturing Facilities, and purchasing Electric Vehicles for handling and movement at their Gangol manufacturing facility and General corporate purpose.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.