Kusumgar Launches ₹650 Cr OFS IPO: Key Dates, Financial Dip, and Market Positioning Revealed
Mumbai-based synthetic fabrics maker Kusumgar is set to enter the capital markets with a significant Rs 650 crore initial public offering (IPO). The issue was scheduled to open on July 8, marking its debut after Knack Packaging's listing earlier in the month.The IPO structure revolves entirely around an offer-for-sale (OFS), meaning the company is not raising operational funds from this specific issue. All proceeds will be directed to the selling shareholders.
##IPO Schedule and Listing Details
Anchor book appointments for the IPO are scheduled for July 7. Following this, the public issuance period runs until July 10. The allotment basis is expected to be finalized by July 13. Kusumgar shares are slated for listing on stock exchanges on July 15.
The company has dedicated an allocation of Rs 3.5 crore worth of equity shares specifically reserved for eligible employees, adding a performance incentive element to the offering.
##OFS Structure and Shareholder Objectives
Promoters Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and the Siddharth Yogesh Kusumgar HUF are identified as the selling shareholders in this OFS. The primary objective of the IPO is to facilitate the transfer of equity shares listing benefits onto the stock exchanges through the concentrated OFS mechanism.
Kusumgar manufactures engineered fabrics and solutions that cater to diverse high-value segments, including aerospace and defence, industrial and automotive, and outdoor and lifestyle markets. These products are based on polyamides, polyester filaments, and polyurethane chemistry.
##Financial Performance Under Review
The company's recent financial trajectory shows marked variability across the last two fiscal years. For the financial year ended March 2026, profitability saw a decline of 12.3 percent to Rs 98.2 crore. Concurrently, revenue also dipped by 11.2 percent, reaching Rs 692 crore compared to the previous period.
A contrasting trend was observed in FY25. During that fiscal year, profit surged by 32.7 percent, hitting Rs 112 crore. Revenue demonstrated substantial growth during FY25, growing 66.5 percent and registering at Rs 779 crore over FY24.
Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors serve as the book-running lead managers for Kusumgar's public offering.
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