Key Takeaways
- Kusumgar IPO subscribed 3.45 times on the first day of bidding
- Strong non-institutional demand reached 7.35 times the subscription
- A grey market premium indicates a 38% expected listing gain
The initial public offering of Kusumgar Ltd received a strong investor response on the first day of subscription, achieving full subscription shortly after opening. By the end of the day, the issue was subscribed 3.45 times, reflecting solid demand across investor categories.
Strong Subscription Led By Non-Institutional And Retail Investors
According to data from the National Stock Exchange, the IPO received bids for 3,95,95,045 shares against 1,14,68,094 shares on offer. The non-institutional investor category led demand with a subscription of 7.35 times, while the retail investor segment was subscribed 3.52 times.
The portion allocated to Qualified Institutional Buyers was subscribed 47%, indicating moderate participation from institutional investors on the first day. The three-day subscription window for the IPO is scheduled to close on July 10.
The price band for the issue has been set at ₹398 to ₹419 per share. The IPO is entirely an offer for sale, which means the company will not receive any proceeds from the issue. Instead, the funds raised will go to the existing shareholders who are selling their stakes.
Ahead of the public issue, Kusumgar Ltd raised ₹193.9 crore from anchor investors. This early participation contributed to initial demand visibility before the IPO opened for public subscription.
Grey Market Signals And Business Overview Support Investor Interest
The grey market premium for Kusumgar shares has remained strong. Unlisted shares are currently trading at a premium of ₹160, indicating a potential listing price of around ₹579 based on the upper price band. This reflects an expected listing gain of approximately 38.19%.
Kusumgar Ltd, founded in 1990, operates in the engineered fabrics segment. The company manufactures woven, coated, and laminated synthetic fabrics used across multiple industries. Its product portfolio includes aerospace and defence fabrics, industrial and automotive fabrics, and outdoor and lifestyle fabrics.
The company operates 6 manufacturing facilities in Gujarat, along with 1 fabrication unit in Uttar Pradesh. This production network supports its presence across domestic and export markets.
On the financial front, Kusumgar reported revenue from operations of ₹692 crore in FY26, along with a net profit of ₹98 crore. The company has maintained consistent operations across its manufacturing segments.
The IPO is being managed by Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors as book-running lead managers. The shares are expected to be listed on both the NSE and the BSE, with a tentative listing date of July 15, 2026.
The strong subscription levels, supported by retail and non-institutional participation, along with a notable grey market premium, indicate active investor interest in the offering during the initial phase of the subscription period.
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