KSH International IPO Overview
Pune-based magnet winding wire manufacturer raising ₹710 cr (₹420 cr fresh + ₹290 cr OFS). Price: ₹365-384. Lot: 39 shares (₹14,976 min).
Funds for debt repayment (₹225.98 cr), Supa/Chakan machinery (₹87 cr), solar plant.
Lead: Nuvama, ICICI Securities.
Founded 1979 (started operations 1981 in Taloja). India’s 3rd largest manufacturer, largest exporter of magnet winding wires by export revenue (FY25). 29,045 MT capacity (3 units), 4th Supa unit started Sep 2025.
Products: Round enamelled copper/aluminium, paper-insulated rectangular, CTC. 122 customers (FY25) including BHEL, Siemens, Hitachi, GE Vernova. Exports to 24 countries (30.75% revenue Q1 FY26).
Competes with Precision Wires, KEI Industries, RR Kabel, Apar Industries.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Mainboard |
| IPO Open Date | 16 December 2025 (Tuesday) |
| IPO Close Date | 18 December 2025 (Thursday) |
| Anchor Investor Bidding | 15 December 2025 (Monday) |
| Allotment Date | 19 December 2025 (Friday) – Expected |
| Credit to Demat | 22 December 2025 (Monday) – Expected |
| Refund Initiation | 22 December 2025 (Monday) – Expected |
| Listing Date | 23 December 2025 (Tuesday) – Tentative |
| Price Band | ₹365 – ₹384 per share |
| Face Value | ₹5 per share |
| Lot Size | 39 shares (minimum lot) |
| Min Investment (Retail) | ₹14,976 (39 shares at upper band ₹384) |
| sNII Investment | ₹2,09,664 (14 lots / 546 shares) minimum |
| bNII Investment | ₹10,03,392 (67 lots / 2,613 shares) minimum |
| Issue Size | ₹710 crore total |
| Fresh Issue | ₹420 crore (59.2%) – 1,09,38,000 shares (approx) |
| Offer for Sale (OFS) | ₹290 crore (40.8%) – 7,55,000 shares (approx) by promoters |
| Total Shares Offered | 1,86,93,000 equity shares (approx) |
| Listing | BSE & NSE (Mainboard) |
| Post-Issue Market Cap | ~₹2,602 crore (at upper price band ₹384) |
Issue Break-up
| Category | Allocation |
| QIB (Qualified Institutional Buyers) | 50% of Net Offer |
| NII (Non-Institutional Investors) | 15% of Net Offer |
| Retail Individual Investors | 35% of Net Offer |
Selling Shareholders (OFS ₹290 crore)
Promoters Selling 7,55,000 shares (approx):
- Kushal Subbayya Hegde – Promoter (partial exit)
- Pushpa Kushal Hegde – Promoter (partial exit)
- Rajesh Kushal Hegde – Promoter (partial exit)
- Rohit Kushal Hegde – Promoter (partial exit)
Pre-IPO Placement (Dec 8, 2025 at ₹384/share):
- Malabar India Fund: 8.51 lakh shares (₹32.7 cr)
- Rupal K Sancheti: 39,062 shares (₹1.5 cr)
- Salil Ajay Bhargava: 13,021 shares (₹0.5 cr)
Note: OFS represents 40.8% of issue. Majority (59.2%) fresh capital for company. Promoter partial exit after 44+ years.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹420 crore) will be used for:
- Repayment/Prepayment of Borrowings – ₹225.98 crore (53.8%)
- Full or partial repayment of bank loans and financial institution borrowings
- Reduction of interest burden on P&L
- Improving financial flexibility and debt-equity ratio
- Purchase and Installation of Machinery for Facility Expansion – ₹87 crore (20.7%)
- Supa facility (Ahilyanagar, Maharashtra) machinery
- Unit 2 at Chakan (Pune) machinery
- Capacity expansion and technology upgrades
- Installation of Rooftop Solar Power Plant – Allocation TBD
- Solar power generation for captive consumption
- Reducing electricity costs
- Sustainability and ESG compliance
- General Corporate Purposes – Balance Amount
- Working capital requirements
- Operational expenses
- Strategic initiatives and contingencies
Strategic Focus:
- Significant debt reduction (54% of proceeds) improving balance sheet health
- Capacity expansion at Supa and Chakan Unit 2 strengthening production
- Solar power installation reducing energy costs
- Strengthening position in growing magnet wire market
OFS Proceeds (₹290 crore):
- Goes to promoters Kushal, Pushpa, Rajesh, Rohit Hegde for partial liquidity after 44+ years
Note: 59% fresh issue vs 41% OFS – balanced structure. Debt repayment priority indicates deleveraging focus.
Lead Managers & Registrar
Book Running Lead Managers (BRLMs):
- Nuvama Wealth Management Limited
- ICICI Securities Limited
Registrar:
- MUFG Intime India Private Limited (Link Intime India Private Limited)
- Phone: +91-22-4918 6270
- Email: [email protected]
- Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Promoters & Management
Key Promoters (12 Promoters – Family & Trusts):
Individual Promoters:
- Mr. Kushal Subbayya Hegde – Founder & Chairman (Partial OFS participant)
- Mrs. Pushpa Kushal Hegde – Promoter (Partial OFS participant)
- Mr. Rajesh Kushal Hegde – Promoter (Partial OFS participant)
- Mr. Rohit Kushal Hegde – Promoter (Partial OFS participant)
- Mrs. Rakhi Girija Shetty – Promoter
Family Trusts (Promoter Group): 6. Dhaulagiri Family Trust 7. Everest Family Trust 8. Makalu Family Trust 9. Broad Family Trust 10. Annapurna Family Trust 11. Kanchenjunga Family Trust 12. Waterloo Industrial Park VI Private Limited – Corporate Promoter
Company History:
- Incorporated: 1979
- Operations Started: 1981 in Taloja, Raigad, Maharashtra
- Legacy: 44+ years in magnet winding wire manufacturing
- Evolution: Diversified from basic wires to specialized products (round enamelled, paper-insulated, CTC)
- Growth: Three facilities (Taloja, 2x Chakan) with 29,045 MT capacity; 4th Supa facility operational Sep 2025
- Brand: “KSH” brand with strong industry recognition
- Milestone: Became India’s 3rd largest manufacturer and largest exporter by export revenue (FY25)
Company Contact:
- Registered Office: 11/3, 11/4 and 11/5, Village Birdewadi, Chakan Taluk Khed, Pune, Maharashtra – 410501, India
- Phone: +91 20 45053237
- Email: [email protected]
- Website: www.kshinternational.com
COMPANY OVERVIEW
Establishment & Background:
- Incorporated: 1979; Operations Started: 1981 (44+ years)
- Industry: Magnet Winding Wire Manufacturing
- Headquarters: Pune, Maharashtra
- Positioning: India’s 3rd largest manufacturer, largest exporter of magnet winding wires by export revenue (Fiscal 2025 per CARE report)
Business Model:
Product Portfolio – Magnet Winding Wires:
1. Round Enamelled Winding Wires
- Copper and aluminium enamelled wires
- Core product for transformers, motors, alternators, generators
2. Paper-Insulated Rectangular Conductors
- Rectangular copper and aluminium wires with paper insulation
- Specialized applications requiring rectangular cross-section
3. Continuously Transposed Conductors (CTC)
- High-tech product for power transformers
- Reduced eddy current losses
4. Rectangular Enamelled Wires
- Enamelled rectangular conductors
- Space-saving designs for compact equipment
5. Bunched Paper-Insulated Copper Wires
- Customized bunched wires
- Special applications and client-specific requirements
End Applications:
- Transformers (power, distribution, isolation)
- Motors (industrial, automotive EV/ICE)
- Alternators and generators
- Home appliances (washing machines, refrigerators, air conditioners)
- HVAC systems
- Railways (traction motors, transformers)
Manufacturing Infrastructure:
- 3 Operational Facilities (as of June 30, 2025):
- 2 units in Chakan, Pune, Maharashtra
- 1 unit in Taloja, Raigad, Maharashtra
- Combined Capacity: 29,045 MT annually
- 4th Facility: Supa, Ahilyanagar (Ahmednagar), Maharashtra – started operations September 2025
- IPO-Funded Expansion: Additional machinery for Supa and Chakan Unit 2
Client Base:
- 122 Customers (FY25): Diversified across power, renewables, railways, automotive, industrials
- 93 Customers (Q1 FY26)
- Top OEM Clients:
- Bharat Bijlee, Bharat Heavy Electricals (BHEL)
- Hitachi Energy India, Siemens Energy India
- GE Vernova T&D India, CG Power and Industrial Solutions
- Nidec (motors), Toshiba Transmission & Distribution Systems
- Virginia Transformer Corporation, Georgia Transformer Corporation
- Emirates Transformer & Switchgear (UAE)
Export Markets:
- 24 Countries: USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh, Japan, and others
- 30.75% of Revenue (Q1 FY26) from exports
- Largest Exporter: By export revenue in magnet winding wire segment (FY25)
Revenue Model:
- Product sales to OEMs and transformer/motor manufacturers
- Customized solutions commanding premium pricing
- Export markets providing forex earnings and diversification
Value Proposition:
- Established Brand: “KSH” brand with 40+ years reputation
- Product Range: Comprehensive portfolio from standard to specialized wires
- Quality & Compliance: Serving marquee OEMs requiring stringent quality
- Export Capability: Presence in 24 countries demonstrating international competitiveness
- Customer Stickiness: OEM approvals and certifications create switching barriers
Market Position:
- 3rd Largest Manufacturer in India by production capacity (Fiscal 2025 per CARE report)
- Largest Exporter from India by export revenue in magnet winding wire segment (FY25)
- 29,045 MT Capacity (3 facilities); 4th Supa facility adds further capacity
- 122 Customers (FY25) including India’s leading OEMs and international clients
- 44+ Years Legacy: One of India’s oldest private magnet wire manufacturers
Operations:
Pan-India & International Presence:
- Manufacturing in Maharashtra (Chakan, Taloja, Supa)
- Sales across India to power, renewables, railways, automotive, industrial sectors
- Exports to 24 countries spanning USA, Middle East, Europe, Asia
Financial Performance Highlights:
- FY25: ₹1,390.50 cr revenue (+39.44% from ₹1,056.60 cr FY24), ₹37.35 cr PAT (+82% from ₹26.61 cr FY24)
- FY24: ₹1,056.60 cr revenue, ₹26.61 cr PAT
- FY23: Revenue and PAT data inferred lower
- PAT Margin (FY25): 2.69% – modest for manufacturing
- Q1 FY26 (3 months to June 30, 2025): Revenue and PAT data not fully disclosed
- Growth Trajectory: Strong 39% revenue, 82% PAT growth FY24-25 demonstrating operational leverage
Company Strengths
1. India’s 3rd Largest Manufacturer, Largest Exporter – Market Leadership:
- 3rd largest magnet winding wire manufacturer in India by production capacity (Fiscal 2025)
- Largest exporter from India by export revenue in this segment (FY25 per CARE report)
- 29,045 MT installed capacity (3 facilities) with 4th Supa unit operational Sep 2025
2. Exceptional Financial Performance – 39% Revenue, 82% PAT Growth (FY24-25):
- Revenue surged from ₹1,056.60 cr (FY24) to ₹1,390.50 cr (FY25) – 39.44% YoY growth
- PAT nearly doubled from ₹26.61 cr to ₹37.35 cr – 82% YoY growth
- Sustained profitability with improving margins demonstrating operational leverage
3. Blue-Chip Customer Base – BHEL, Siemens, Hitachi, GE Vernova:
- 122 customers (FY25) including India’s top OEMs across power, railways, automotive, industrials
- Marquee clients: BHEL, Siemens Energy, Hitachi Energy, GE Vernova, CG Power, Nidec
- Long-term relationships with high switching costs (OEM certifications required)
4. Strong Export Presence – 30.75% Revenue from 24 Countries:
- Exports to 24 countries including USA, UAE, Germany, Saudi Arabia, Japan, Spain
- 30.75% of Q1 FY26 revenue from exports providing forex diversification
- International competitiveness validated by serving global OEMs
5. Capacity Expansion – 4th Supa Facility + IPO-Funded Machinery:
- 4th manufacturing facility at Supa, Ahilyanagar started operations September 2025
- ₹87 cr IPO allocation for Supa and Chakan Unit 2 machinery expansion
- Scaling production to meet growing demand from power, renewables, EV sectors
6. Diversified End-Use Industries – Power, Renewables, Railways, Auto, HVAC:
- Products used across power transformers, motors, alternators, generators, EV traction
- Multi-industry presence reducing single-sector dependency
- Growth in renewables (wind/solar), EVs, railways driving magnet wire demand
7. Debt Reduction Focus – ₹225.98 Cr (54% of IPO) for Loan Repayment:
- 54% of fresh issue proceeds allocated to debt repayment – balance sheet deleveraging
- Reducing interest burden improving profitability
- Solar power plant installation further lowering energy costs
Key Risks & Challenges
1. High Customer Concentration – Top 10 = 53-59% Revenue:
- Top 10 customers contributed 58.99% (FY23), 57.10% (FY24), 52.54% (FY25), 53.97% (Q1 FY26) of revenue
- Loss of any single major client (BHEL, Siemens, Hitachi, GE) materially impacts revenue
- No disclosed long-term agreements; project-based orders create revenue volatility
2. Extreme Supplier Concentration – Top 10 = 97-99% Purchases:
- Top 10 suppliers accounted for 98.58% (FY23), 96.93% (FY24), 98.45% (FY25), 98.91% (Q1 FY26) of raw material purchases
- No long-term supplier agreements – supply disruption risk
- Copper and aluminium price volatility directly impacts costs; limited pricing power to pass increases fully
3. Intense Competition from Established Wire Manufacturers:
- Competes with Precision Wires India, KEI Industries, RR Kabel, Apar Industries (larger diversified cable/wire players)
- Global competition from Chinese, European manufacturers in export markets
- Price competition and customer bargaining power limits margins (2.69% PAT margin FY25)
4. Commodity Price Volatility – Copper & Aluminium Exposure:
- 97-99% of raw materials from Top 10 suppliers (copper, aluminium, insulation materials)
- LME copper/aluminium price swings directly impact input costs
- Thin margins (2.69% PAT) leave little buffer for commodity price shocks
5. Promoter Partial Exit – ₹290 Cr OFS (40.8% of Issue):
- 40.8% of IPO is OFS by promoters Kushal, Pushpa, Rajesh, Rohit Hegde after 44+ years
- Signals partial exit at potentially peak valuations
- Pre-IPO placement at ₹384 (upper band) by Malabar India Fund, individual investors indicates institutional interest but also sets valuation ceiling
6. Capital Intensity – Continuous Capex for Capacity Expansion:
- 4th Supa facility operational Sep 2025; ₹87 cr IPO for further machinery
- Manufacturing requires ongoing capex for capacity, technology, maintenance
- Debt repayment (₹225.98 cr) indicates previous heavy borrowings; future expansion may need more debt
7. Low PAT Margin (2.69% FY25) – Profitability Pressure:
- PAT margin of 2.69% (FY25) modest for manufacturing despite 82% PAT growth
- Commodity-linked business with thin margins susceptible to cost pressures
- Customer and supplier concentration limits pricing power and margin expansion
Disclaimer
This information is based on publicly available sources including SEBI RHP filings, company disclosures, news reports, and CARE reports. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Past performance is not indicative of future results. The company reported strong financial performance (FY25: 39% revenue growth to ₹1,390.50 crore, 82% PAT growth to ₹37.35 crore, 2.69% PAT margin), is India’s 3rd largest magnet winding wire manufacturer and largest exporter by export revenue (Fiscal 2025) with 29,045 MT capacity (3 facilities, 4th Supa unit operational Sep 2025), serves 122 customers including BHEL, Siemens, Hitachi, GE Vernova with 30.75% revenue from exports to 24 countries, but faces significant risks including high customer concentration (Top 10 = 53-59% revenue with no long-term agreements), extreme supplier concentration (Top 10 = 97-99% of raw material purchases with no long-term contracts), commodity price volatility (copper/aluminium), intense competition from established wire manufacturers (Precision Wires, KEI, RR Kabel, Apar), promoter partial exit (₹290 crore OFS, 40.8% of issue) after 44+ years, capital intensity requiring continuous capex, and low PAT margin (2.69% FY25) limiting profitability buffer. 59% fresh issue allocated primarily to debt repayment (₹225.98 crore, 54%) and capacity expansion (₹87 crore Supa/Chakan machinery). Pre-IPO placement by Malabar India Fund (₹32.7 crore) and others at ₹384 upper band. Founded 1979, operations since 1981 with “KSH” brand. Mainboard listing on BSE/NSE. Investors must review detailed customer/supplier dependencies, commodity hedging strategies, and margin sustainability in RHP before applying.
