Kusumgar IPO: Textile Maker’s Shares Make Strong Debut, List With 37% Premium

Kusumgar shares made their debut on the NSE and BSE on July 15 with gains. Kusumgar shares listed on the BSE at Rs 574 apiece, up 36.9 per cent compared to the upper issue price of Rs 419 apiece, reflecting strong grey market premium (GMP) trends. The stock saw strong early demand among investors following a highly successful subscription period. On the NSE, the stock listed at Rs 569 apiece with a premium of 35.7 per cent.

Kusumgar Listing Day Gain

Applicants who were allotted a minimum of one lot or 35 shares of Kusumgar would have gained at least Rs 5,425 (Rs 574 - Rs 419 x 35) once the textiles company’s shares listed on the exchange. The Gujarat-based technical textile manufacturer’s total market capitalisation stood at an estimated Rs 6,026.50 crore upon listing and 3.29 lakh shares of the company traded hands on the exchanges.

Kusumgar IPO: Offer Size

The Kusumgar IPO was worth Rs 650.36 crore. The technical textile manufacturer’s issue consisted entirely of an Offer for Sale (OFS) of 15.5 million shares, with no fresh issue of shares. The Kusumgar IPO price band was fixed at Rs 398 - Rs 419 per share.

Kusumgar IPO: Subscription

The minimum lot size for application for retail investors was fixed at 1 lot or 35 shares, which aggregated to an investment of Rs 14,665. The Kusumgar IPO was oversubscribed 128.85 times in its subscription period, which started on July 8 and ended on July 10. Investors across categories placed bids for over 1.47 billion shares compared to the 11.4 million shares offered for subscription.

The non-institutional investors (NII) quota of the engineered fabrics manufacturer was booked 165.46 times. The Kusumgar IPO was booked 26.47 times in the retail individual investor category. The technical textile maker’s issue saw massive demand from Qualified Institutional Buyers (QIB), with the category booked 284.10 times.

Kusumgar: Promoters

Kusumgar’s promoters held an 89.44 per cent stake in the company before the public issue. The promoters, which include Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, Siddharth Yogesh Kusumgar (HUF), and Yogesh Kantilal Kusumgar, reduced their stake to 74.72 per cent post-IPO.

Kusumgar: Listed Peers

Kusumgar operates in the specialised technical textiles market which has significant entry barriers. In the listed space, the company primarily competes with major players like Garware Technical Fibres, Arvind, and SRF. It also faces competition from various unlisted peers and private manufacturers that specialise in mission-critical aerospace textiles, parachute systems, geosynthetics, and engineered fabrics for defence and industrial applications.

Kusumgar IPO: Objective

Kusumgar’s public issue was a 100 per cent Offer for Sale (OFS), thus the company will not receive any proceeds from the public issue. The funds raised will go entirely to the selling promoters Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF.