IPO Structure and Purpose
Kusumgar has taken its first step towards entering the capital markets by filing preliminary papers with SEBI for an initial public offering worth Rs 650 crore. The issue will be entirely an offer for sale, meaning the proceeds will go directly to the promoters and selling shareholders, while the company itself will not raise new capital from this offering.
The primary objective of the IPO is to provide an exit opportunity for promoters and facilitate the listing of Kusumgar’s shares on the stock exchanges, enhancing visibility and liquidity for the company.
Business Overview
Kusumgar is a leading player in the engineered fabrics segment, manufacturing woven, coated and laminated synthetic fabrics. Its product portfolio serves multiple sectors including aerospace and defence, industrial and automotive, as well as outdoor and lifestyle. These verticals contributed 77 percent, 15 percent and 7 percent respectively to the company’s revenue.
Globally, engineered fabrics are gaining importance due to their high-performance applications. In 2024, the industrial and automobile segment made up 48 percent of the global industry value, followed by outdoor and lifestyle at 32 percent, and defence and aerospace at 8 percent. Kusumgar’s positioning in these segments gives it a strong foundation for growth.
Financial Performance
Kusumgar has reported a healthy financial performance in recent years. For the year ended March 2025, its profit grew 32.7 percent to Rs 112 crore, compared to Rs 84.4 crore in the previous year. Revenue jumped by an impressive 66.5 percent, reaching Rs 779 crore, up from Rs 467.9 crore in FY24. This strong top-line and bottom-line growth reflects the rising demand for its products across industries.
Industry Peers and IPO Managers
The company competes with established listed players such as Garware Technical Fibres, Arvind, and SRF. To manage the public offering, Kusumgar has appointed Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors as the lead book-running managers.
What Lies Ahead
While Kusumgar will not raise fresh funds through this IPO, the listing is expected to enhance its market presence and provide greater transparency for investors. The strong growth in its financials and its positioning in high-demand industries could make the IPO attractive to both institutional and retail investors.
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