Kusumgar Raises Rs 193 Crore from Anchor Investors Ahead of Rs 650 Crore OFS IPO Listing Plan

Kusumgar Raises Rs 193 Crore from Anchor Investors Ahead of Rs 650 Crore OFS IPO Listing Plan​

Kusumgar, a manufacturer specializing in engineered fabrics for critical sectors, has successfully raised substantial capital ahead of its upcoming initial public offering (IPO). The Mumbai-based company secured Rs 193.95 crore from 15 anchor investors as part of the preliminary private placements, signaling strong pre-market confidence.

The IPO is set to raise a total of Rs 650 crore and will open for public subscription on July 8th, closing two days later on July 10th. The issue is structured entirely as an offer for sale (OFS). The price band for the shares has been fixed at Rs 398 to Rs 419 per share.

##Anchor Investment Details and Investor Participation

A total of 46.28 lakh equity shares were allotted to anchor investors on July 7th, which was set at the upper end of the specified price band. Major domestic mutual fund houses participated significantly in this private offering.

The participating domestic funds included Nippon India Mutual Fund, SBI Mutual Fund, WhiteOak Capital Mutual Fund, ICICI Prudential Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Tata Mutual Fund, and Axis Mutual Fund.

##Global Giants Participate in Pre-IPO Funding

Global investment firms demonstrated robust interest in Kusumgar's future prospects. BlackRock Global Funds and Goldman Sachs were among the international participants. Each global firm received 4.77 lakh shares, equating to approximately Rs 20 crore for each entity.

Additionally, Axis Max Life Insurance and Kotak Mahindra Life Insurance contributed a combined total of 3.08 lakh shares, amounting to an investment valued at Rs 12.9 crore.

##IPO Proceeds Structure and Company Objective

As the entire IPO is structured as an OFS, Kusumgar will not receive any proceeds from this offering. The sale proceeds generated by the public subscription phase will be transferred to the selling shareholders, specifically the promoters: Siddharth Yogesh Kusumgar, Sapna Kusumgar, and Siddharth Yogesh Kusumgar HUF.

The primary objective of launching this issue is purely to achieve the benefits and visibility gained through listing on major stock exchanges.

##Kusumgar's Operational Segments and Market Presence

Kusumgar operates six manufacturing facilities situated in Gujarat and one fabrication unit located in Uttar Pradesh. The company specializes in producing various engineered products and specialized fabrics across four key business segments.

These segments are aerospace and defence fabrics, aerospace and defence solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics. These offerings contributed 32 percent, 23 percent, 24 percent, and 19 percent to the FY26 revenue, respectively.

##Financial Performance in FY26

While securing significant pre-IPO funding, Kusumgar faced a challenging fiscal period in FY26. The company reported a decline in net profit for FY26, recording Rs 98.2 crore compared to Rs 112 crore the previous year.

Similarly, revenue saw a dip of 11.2 percent, falling to Rs 692 crore from Rs 779 crore in the prior financial year. Kusumgar manufactures specialized products like parachute systems and stealth solutions for aerospace and defence applications.

Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors serve as the book-running lead managers for this offering.