Kusumgar IPO GMP jumps 38%; issue subscribed 17x ahead of closing today

The ₹650-crore initial public offering (IPO) of engineered fabrics manufacturer Kusumgar has garnered a strong response from investors, with the issue subscribed 17.17 times ahead of its closing today. The company's shares were also commanding a strong grey market premium (GMP) in the unlisted market, indicating a potential listing gain of nearly 38% over the upper end of the price band.

The latest grey market premium (GMP) stood at ₹158 per share on Friday morning, as per InvestorGain data. Based on the upper price band of ₹419, the stock is estimated to list at around ₹577, implying a potential listing gain of about 37.7%. However, the GMP is an unofficial indicator and should not be considered a reliable predictor of listing performance.

Subscription crosses 17x on final day

According to NSE data, the IPO received bids for 19.69 crore shares against 1.14 crore shares on offer by 10:15 a.m. today.

The non-institutional investor (NII) category emerged as the biggest driver of demand, attracting 51.79 times subscription. Within the segment, applications above ₹10 lakh were subscribed 53.84 times, while the ₹2 lakh-₹10 lakh category was booked 47.69 times.

The retail individual investor (RII) quota was subscribed 11.11 times, while the qualified institutional buyer (QIB) portion was subscribed 2.21 times. The employee reservation category was subscribed 4.43 times.

The book-built issue, which opened for subscription on July 8, will close on July 10. The IPO is entirely an offer for sale (OFS) of 1.55 crore equity shares, with no fresh issue component, aggregating ₹650 crore at the upper end of the price band.

The company has fixed the price band at ₹398-₹419 per share, with investors required to bid for a minimum of 35 shares, translating into a minimum investment of ₹14,665 at the upper end of the band. Eligible employees are being offered shares at a discount of ₹39 per share, with shares worth ₹3.5 crore reserved for them.

Incorporated in 1990, Kusumgar manufactures woven, coated, and laminated synthetic engineered fabrics used across the aerospace and defence, industrial and automotive, and outdoor and lifestyle segments. The company specialises in performance fabrics designed to meet stringent requirements such as tensile strength, tear resistance, abrasion resistance, waterproofing, and air permeability. As of March 31, 2026, it had developed more than 1,000 stock keeping units (SKUs) catering to a wide range of industrial applications.

On the financial front, Kusumgar reported a total income of ₹711.8 crore and a net profit of ₹98.2 crore for FY26. Both revenue and profit declined from the previous fiscal, when the company posted a total income of ₹790.2 crore and a net profit of ₹112 crore. However, its net worth nearly doubled to ₹503 crore, while total borrowings fell to ₹223.6 crore from ₹246.5 crore a year earlier.

The basis of allotment is expected to be finalised on July 13, while Kusumgar shares are scheduled to list on the BSE and NSE on July 15.

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