Kusumgar shares rally up to 47% after stellar IPO debut

Shares of engineered fabrics manufacturer Kusumgar made a strong stock market debut on Wednesday after the company's ₹650-crore initial public offering (IPO) received an overwhelming response from investors. The issue, which was open for bidding between July 8 and July 10, was subscribed 128.85 times.

Kusumgar shares listed at ₹574 on the BSE, a premium of 37% over the issue price of ₹419 apiece, valuing the company at a market capitalisation (m-cap) of ₹6,026.50 crore. On the NSE, the stock debuted at ₹569, up 35.80% from the IPO price.

Post listing, Kusumgar shares rose as much as 47.4% to hit a high of ₹617.75 on the BSE, taking its m-cap to ₹6,466.42 crore.

Listing in line with Street estimates

The listing of Kusumgar was broadly in line with Street expectations, as the company's shares were commanding a strong grey market premium (GMP) in the unlisted market, indicating a potential listing gain of over 38% over the upper end of the price band. Ahead of the listing, the GMP stood at ₹161 per share on Wednesday morning.

The Kusumgar IPO was 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 of ₹398-₹419 per share.

According to NSE data, the IPO received bids for 147.76 crore equity shares against the 1.14 crore equity shares on offer. The qualified institutional buyers (QIB) portion and the non-institutional investors (NII) portion were subscribed 284.10 times and 165.46 times, respectively. The retail portion was subscribed 26.47 times, while the employee reserved quota was subscribed 10.48 times on the final day of bidding.

Ahead of the IPO, the issue attracted strong institutional interest, raising ₹193.9 crore from anchor investors. The anchor book was backed by marquee global and domestic institutions, including Blackstone Global Funds – India Fund, Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, Kotak Mahindra Life Insurance Company, and leading mutual fund schemes such as SBI Contra Fund, ICICI Prudential ELSS Tax Saver Fund, Tata Flexi Cap Fund, and Mirae Asset Infrastructure Fund.

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 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 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 declined to ₹223.6 crore from ₹246.5 crore a year earlier.

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