Kusumgar IPO: The initial public offering of engineered fabrics manufacturer Kusumgar is set to open for public subscription on Wednesday, 8 July, and will remain open until Friday, 10 July. Ahead of the issue launch, the grey market is witnessing healthy demand for Kusumgar shares, signalling the stock could list at a premium on the Indian exchanges.
The grey market premium (GMP) of Kusumgar shares on Monday, 6 July, morning was ₹171. This indicated the stock may list at a premium of 41% on the BSE and the NSE on Wednesday, 15 July.
Meanwhile, the Kusumgar IPO price band has been fixed in the range of ₹398 to ₹419 per equity share. As the issue is scheduled to conclude on Friday, share allotment is expected to be finalised on the next business day on Monday, 13 July.
Kusumgar IPO: 10 things from RHP
Ahead of the share sale this Wednesday, here are the 10 key things that investors should know about Kusumgar from the RHP:
1. Kusumgar IPO details
Kusumgar IPO is entirely an offer for sale (OFS) of 1.55 crore shares for ₹650 crore. Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF are the promoter selling shareholders in the OFS.
2. Kusumgar IPO book-running lead managers and registrar
Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are the book-running lead managers, while Bigshare Services Private Limited is the registrar of the Kusumgar IPO.
3. Objects of the offer
As the issue is an OFS, the company will not receive any proceeds from it. However, the company expects that listing of its shares will enhance its brand visibility and provide liquidity to its existing shareholders.
4. Kusumgar promoters
As per the Red Herring Prospectus (RHP) of the issue, Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF are the promoters of the company.
Promoters collectively hold 94,981,169 shares, representing 90.11% of the pre-offer issued, subscribed, and paid-up share capital of the company on a fully diluted basis.
5. Kusumgar management
The board of directors comprise six directors. Siddharth Yogesh Kusumgar, 50, is the Chairman and Managing Director, while Sapna Siddharth Kusumgar, 50, is the Joint Managing Director of the company.
Ankur Kothari, 41, is the Executive Director and Chief Executive Officer of Kusumgar.
6. Kusumgar business
Kusumgar is a manufacturer of woven, coated and laminated synthetic fabrics, referred to as engineered fabrics. It offers engineered fabrics and solutions focusing on polyamides and polyester filaments and polyurethane chemistry that cater to the high-performance requirements of its customers.
Kusumgar manufactures products primarily for four market segments: (i) aerospace and defence fabrics; (ii) aerospace and defence solutions; (iii) industrial and automotive fabrics; and (iv) outdoor and lifestyle fabrics.
All six of its manufacturing facilities are in Gujarat.
7. Kusumgar’s financial performance
The company’s revenue from operations in FY24, FY25, and FY26 was ₹467.9 crore, ₹779 crore, and ₹692 crore, respectively.
Its profit in FY24 was ₹84.40 crore, which rose to ₹112 crore in FY25, but eased to ₹98.20 crore in FY26, as per the RHP.
8. Engineered fabrics industry growth outlook
As per the issue’s RHP, the global engineered fabrics industry, which has grown at a CAGR of 8.5% from 2019 to 2025, is projected to reach $112.2 billion in 2030, representing a CAGR of 10.6% from 2025 to 2030.
9. Kusumgar’s listed peers
Garware Technical Fibres and Arvind are two major listed peers of Kusumgar.
10. Key risks
The company’s top 10 customers contributed 11.13% and 59.52%, respectively, of its revenue from contracts for FY26. Any decrease in sales to such customers could have an adverse effect on the company’s business. The company is also operating in a highly competitive industry, which is a key risk.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
