Engineered Fabrics Maker Kusumgar Sets Price Band for ₹4,400 Crore IPO
Mumbai's engineered fabrics specialist, Kusumgar, has finalized the price band for its Initial Public Offering (IPO), setting the offering at Rs 398-419 per share. The public issue is scheduled to commence on July 8 and close on July 10.The IPO, with a total size of Rs 650 crore, represents an Offer For Sale (OFS) exclusively by the promoters: Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF. This means all net proceeds from the public issue will be received by these selling shareholders.
IPO Structure and Retail Investor Allocation
Investors can acquire a minimum of 35 equity shares in multiples of 35 thereafter. At the upper price band, the retail investment range runs from Rs 14,665 to Rs 1,90,645.The allocation structure is divided among different investor categories: Qualified Institutional Buyers (QIBs) will receive 50 percent of the offer. Non-Institutional Investors (NIIs) are allotted 15 percent, and Retail investors hold a 35 percent share of the IPO.
Kusumgar also designated shares worth Rs 3.5 crore for its employees. These internal shares will be offered at a discount of Rs 39 per share to the final issue price, incentivizing company staff.
Business Overview and Market Position
Kusumgar specializes in manufacturing woven, coated, and laminated synthetic fabrics. The company boasts over 1,000 unique fabric configurations tailored for diverse segments, including aerospace and defence, industrial and automotive, and outdoor and lifestyle markets.The firm competes directly against established listed peers such as Garware Technical Fibres, Arvind, and SRF. This positions Kusumgar within a competitive landscape of specialized material producers.
Financial Performance Snapshot Reveals Decline
Financial results for the year ending March 2026 show a downturn for the company compared to the previous period. Net profit declined by 12.3 percent, dropping to Rs 98.2 crore from Rs 112 crore in the preceding year.Revenue also saw a decline of 11.2 percent during the same financial cycle. Revenue stood at Rs 692 crore, down from Rs 779 crore in the previous period.
Book Running Lead Managers Announced
The IPO is being managed by a consortium of leading financial firms. Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are the designated book-running lead managers for the Kusumgar IPO.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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