IPO Overview
Incorporated in 1990, Kusumgar Limited is one of India’s leading manufacturers of woven, coated, and laminated synthetic fabrics — collectively referred to as engineered fabrics. The company develops these fabrics using polyamide and polyester filaments and polyurethane chemistry, targeting applications that demand critical performance characteristics such as tensile strength, tear resistance, abrasion resistance, air permeability, comfort, and waterproofing. Over three decades of operations, the company has developed more than 1,000 unique fabric configurations (SKUs) and serves four key end-use segments: Aerospace & Defence Fabrics, Aerospace & Defence Solutions (parachute systems, stealth materials, camouflage nets, shelters), Industrial & Automotive Fabrics, and Outdoor & Lifestyle Fabrics. Kusumgar operates six manufacturing facilities in Gujarat and one fabrication unit in Uttar Pradesh, with its registered office in Mumbai, Maharashtra.
The company is now launching its maiden mainboard IPO to raise ₹650 crore. Importantly, the entire IPO is a pure Offer for Sale (OFS) — meaning the company itself will not receive any proceeds, with all funds going to the promoter selling shareholders. The IPO is priced in a band of ₹398 to ₹419 per share, with listing on both BSE and NSE. The IPO opens on 8 July 2026 and closes on 10 July 2026, with listing expected on 15 July 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 7 July 2026 |
| IPO Open Date | 8 July 2026 |
| IPO Close Date | 10 July 2026 |
| Allotment Date | 13 July 2026 (Expected) |
| Refund Initiation | 14 July 2026 |
| Credit to Demat | 14 July 2026 |
| Listing Date | 15 July 2026 (Tentative) |
| Price Band | ₹398 – ₹419 per share |
| Face Value | ₹1 per share |
| Lot Size | 35 shares |
| Minimum Investment (Retail) | ₹14,665 (1 lot = 35 shares) |
| Maximum Investment (Retail) | ₹1,90,645 (13 lots = 455 shares) |
| Minimum Investment (sNII) | ₹2,05,310 (14 lots = 490 shares) |
| Minimum Investment (bNII) | ₹10,11,885 (69 lots = 2,415 shares) |
| Issue Size | ₹650 crore |
| Fresh Issue | Nil |
| Offer For Sale (OFS) | 1,55,13,126 shares (₹650 crore) |
Note: The entire IPO is a pure OFS — the company receives zero proceeds. All funds go to the promoter selling shareholders.
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Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Employee Reservation | Shares worth ₹3.5 crore (at ₹39 discount) |
OFS / Selling Shareholders
The IPO is entirely an Offer for Sale by the promoter group. The selling shareholders are Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and the Siddharth Yogesh Kusumgar HUF. The company itself will not receive a single rupee from the IPO proceeds. The issue is being made primarily to provide an exit route to the promoter group and unlock the benefits of a stock exchange listing.
Objects of the Issue (Fund Utilization)
Since this is a 100% Offer for Sale, the company will not receive any proceeds from the IPO. All net proceeds will go directly to the selling promoter shareholders after deduction of offer-related expenses. There is no capital infusion into the company from this issue.
Lead Managers & Registrar
- Book Running Lead Managers: Axis Capital Ltd., IIFL Capital Services Ltd., and Motilal Oswal Investment Advisors Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
Promoters & Management
- Chairman & Managing Director: Siddharth Yogesh Kusumgar
- Other Promoters: Yogesh Kantilal Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar (HUF)
Pre-IPO, the promoter group holds approximately 90.48% of the company’s equity share capital, which will be diluted post-listing. The promoter family has led the company since its founding in 1990, building technical expertise in high-performance synthetic fabrics over three decades.
Company Details
Kusumgar Limited is a specialized technical textiles manufacturer focused on high-performance engineered fabrics. The company serves government and private sector clients across defence, aerospace, automotive, and lifestyle segments. It has also entered into technical, manufacturing, licensing, and co-development partnerships with companies in the United States, Italy, Japan, Switzerland, and Taiwan — covering areas such as parachute systems, camouflage fabrics, ballistic materials, shelter systems, and custom yarn development.
Sectors Served:
- Aerospace & Defence (Fabrics and Finished Solutions)
- Industrial & Automotive
- Outdoor & Lifestyle
Key Products:
- Woven, coated, and laminated synthetic fabrics (1,000+ SKUs)
- Parachute systems and rapid deployment systems
- Stealth and camouflage materials
- Shelters, decoys, and military solutions
- High-performance outdoor and lifestyle fabrics
Key Capabilities:
- Highly specialized manufacturing across weaving, dyeing, finishing, printing, and coating
- Strong backward integration ensuring quality and cost control
- Advanced R&D framework with 19 dedicated R&D personnel as of March 2026
- Technology and market access through international partnerships
- Long-term customer relationships ranging from 2 to 9 years
Manufacturing Facilities:
- Six manufacturing facilities in Gujarat
- One fabrication unit in Uttar Pradesh
- Total workforce: 2,077 employees as of March 31, 2026
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹474.55 | ₹84.40 |
| FY25 | ₹790.21 | ₹111.99 |
| FY26 | ₹711.78 | ₹98.20 |
Key Financial Metrics
- Revenue jumped 66.5% and PAT grew 32.7% in FY25 over FY24 — strong growth phase.
- However, revenue declined ~10% and PAT declined ~12% in FY26 vs FY25 — reflecting order book shifts and heavy capex spending on expansion.
- Average EPS (Basic) over last 3 fiscals: ₹9.90
- Average RoNW over last 3 fiscals: ~46.02%
- Total outstanding borrowings as of May 31, 2026: ₹384.89 crore (including ₹285.82 crore secured fund-based and ₹99.07 crore non-fund-based)
- GMP as of July 4–5, 2026: ₹130–₹135 per share, implying an estimated listing price of ₹549–₹554 (~31% premium over upper price band)
Company Strengths
- Over 35 years of expertise in specialized engineered fabrics — a high-entry-barrier manufacturing segment with deep technical knowledge
- Diversified product portfolio with more than 1,000 unique fabric SKUs catering to defence, aerospace, automotive, and lifestyle segments
- International technology partnerships with companies in the USA, Italy, Japan, Switzerland, and Taiwan — enabling access to cutting-edge fabric technology
- Strong and growing demand from India’s defence and aerospace sector, driven by the government’s Atmanirbhar Bharat and indigenization push
- Well-established long-term customer relationships, with top clients having 2 to 9 years of business history with the company
- Dedicated R&D capabilities supporting continuous product innovation and new fabric development
Key Risks & Challenges
- Pure OFS — No capital to company: The entire ₹650 crore goes to promoters. The company receives no fresh funds for growth, debt reduction, or capex, making future expansion dependent on internal accruals or further borrowings.
- Revenue and profit decline in FY26: Both revenue (down ~10%) and PAT (down ~12%) fell in FY26 — raising concern about the consistency of financial performance at the time of listing.
- High debt: Total outstanding borrowings stood at ₹384.89 crore as of May 31, 2026, which is a concern given the company gets no IPO proceeds to reduce it.
- Geographic concentration risk: All six manufacturing facilities are located in Gujarat — making operations vulnerable to state-specific disruptions.
- Customer concentration risk: Top 10 customers contributed ~59.52% of FY26 revenue; the top customer alone contributed 11.13% — creating significant dependence on a few key relationships.
- Negative operating cash flows: The company reported negative operating cash flows of ₹154.98 crore in FY25, primarily driven by working capital pressures and higher trade receivables.
- Contingent liabilities and legal proceedings: Contingent liabilities of ₹114.80 crore as of March 31, 2026, along with multiple tax proceedings and one material litigation, pose financial and reputational risks.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
