KSH International IPO: Winding Wire Maker’s Public Issue Set To Open On Dec 16 - Should You Apply?

KSH International IPO: KSH International’s initial public offering (IPO) is scheduled to open for subscription on December 16 and close on December 18.

The wire maker plans to raise Rs 710 crore through its public issue. Here’s a look at some key details related to the winding wire manufacturer’s public issue:

KSH International IPO: Offer Size and Price Band 

KSH International’s Rs 710 crore issue consists of a fresh issuance of 10.90 million shares aggregating to Rs 420 crore  and an offer for sale (OFS) of 7.60 million shares amounting to Rs 290 crore. The price band for KSH International IPO has been fixed at Rs 365-384 per share. Retail individual investors can apply for the magnet wire maker’s public issue by placing bids for one lot consisting of 39 shares aggregating to a minimum investment of Rs 14,976.

KSH International IPO: Subscription Window, Allotment Date, Listing Date

Following the closure of the bidding window, the allotment for shares is expected to be determined on December 19, with successful bidders receiving the shares in their demat accounts on December 22. The shares are slated to list on the BSE and NSE on December 23.

KSH International: Key Financials

In the quarter ended June 30, 2025, KSH International posted a total income of Rs 562.60 crore, the company’s profit-after-tax (PAT) stood at Rs 22.68 crore and net worth stood at Rs 321.47 crore.

KSH International’s total income increased by over 39 per cent to Rs 1,938.19 crore in the financial year ended March 31, 2025 compared to Rs 1,390.50 crore in the preceding fiscal. The company posted a net profit of Rs 67.99 crore in FY 2024-25, up by over 82 per cent compared to a net profit of Rs 37.35 crore in the preceding fiscal.

KSH International: Business Model

KSH International is a manufacturer of magnet winding wires. The company has diversified its operations to include manufacturing of various types of standard and specialised magnet winding wires, such as round enamelled copper/ aluminium magnet winding wires, paper insulated rectangular copper/aluminium magnet winding wires, continuously transposed conductors, rectangular enamelled copper/ aluminum magnet winding wires and bunched paper insulated copper magnet winding wires.

The products made by the company are used in transformers, motors, alternators and generators. The company generates revenue through sale of manufactured products vis-a-vis a Business-to-Business (B2B) model. The company’s key customers include Bharat Bijlee, Virginia Transformer Corporation, Bharat Heavy Electricals, Georgia Transformer Corporation, Hitachi Energy India, Siemens Energy India, GE Vernova T&D India and Hind Rectifiers.

KSH International: Competitors

KSH International faces significant competition from other manufacturers and suppliers of winding wires. The company competes with established global and regional players, upcoming manufacturers, and a significant unorganised sector. Some of its key competitors include Precision Wires India, Ram Ratna Wires and Vidya Wires along with unlisted peers like SH Haryana Wires and Asta India. The company also competes with diversified wires and cables market players like Apar Industries and KEI Industries.

KSH International IPO: Should You Apply?

Here’s a look at the strengths and risks mentioned by the wire maker which investors must consider before applying for the public issue:

KSH International: Key Risks

Here’s a look at some of the key risks related to KSH International’s business according to the company’s RHP:

• KSH International depends on its top 10 customers for a significant portion of its revenue from operations. The top-10 customers’ purchases made up 53.97 per cent, 52.54 per cent of the company’s revenue from operations for the three-month period ended June 30, 2025, and FY 2025, respectively. Thus, any decrease in demand is expected to have an adverse effect on the company’s business.

• The company disclosed in its red herring prospectus (RHP) that its business is dependent on suppliers to procure our raw materials with top 10 suppliers contributing to 98.91 per cent of the total cost of raw materials and components purchased for the three-month period ended June 30, 2025. Notably, the company has not entered into long-term agreements with these suppliers. Thus any loss of business can have an adverse impact on the company’s business.

• The company added that it derived over 70 per cent of its revenue in each of the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023 from the sale of specialised magnet winding wires. Reduction in demand for the product is expected to affect the company’s business negatively.

KSH International: Key Strengths

Here’s a look at some of the key strengths of KSH International’s business according to the company’s RHP:

• KSH International is a leading manufacturer of magnet winding wires in India with a suite of products used across multiple end use industries.

• The company claims to have large, strategically located, manufacturing facilities with focus on advanced technologies and new product and process development.

• The company has long standing relationships with a diversified customer base both domestically as well as globally.

KSH International IPO: Objective

KSH International plans to use the proceeds of the public issue for repaying its borrowings, purchasing new machinery, and setting up a rooftop solar power plant. The proceeds will also be used by the winding wire maker for general corporate purposes.