KSH International shares debut at 3.65% discount, fall up to 7.5% post listing

Shares of KSH International, a manufacturer and exporter of magnet winding wires, made a weak debut on the domestic bourses on Tuesday. The Pune-based company’s shares listed at ₹370 apiece on both the BSE and NSE, a discount of 3.65% to the IPO price of ₹384, with a market capitalisation of ₹2,506.96 crore.

Post listing, the stock slipped further, falling as much as 7.5% to hit a low of ₹355 on the BSE, while it dropped to the ₹354 level on the NSE. The broader market also remained muted, with the BSE Sensex and NSE Nifty50 down nearly 0.1% at the time of reporting.

The listing of KSH International IPO was broadly in line with Street expectations, as the stock had been trading at a discount in the grey market. Ahead of the debut, it was quoting at a discount of ₹2 in the unlisted market, indicating a listing price of around ₹382, or about 0.52% below the issue price.

The ₹710 crore public issue of KSH International, which opened for bidding from December 16 to 18, was subscribed 0.87 times overall. The retail portion was subscribed 0.91 times, while the qualified institutional buyers (QIB) segment saw 1.12 times subscription. The non-institutional investor (NII) category lagged, garnering just 0.44 times subscription by the close of the issue.

The public issue comprised a fresh issue of equity shares worth ₹420 crore and an offer for sale (OFS) of up to ₹290 crore by promoters Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde and Rohit Kushal Hegde.

Ahead of the IPO, KSH International raised ₹213 crore from anchor investors by allotting 55,46,874 equity shares at ₹384 apiece. The anchor book saw participation from several marquee global and domestic institutions, including HSBC Global Investment Funds – Asia ex Japan Equity Smaller Companies, Societe Generale – ODI, Kotak Mahindra Life Insurance Company and Edelweiss Life Insurance Company. Among equity-oriented mutual funds, allocations were made to HDFC Manufacturing Fund, Kotak Infrastructure & Economic Reform Fund, LIC MF Large and Mid-Cap Fund, Bank of Baroda Small Cap Fund and Malabar India Fund. Of the total anchor allocation, 41,40,591 equity shares were allotted to five domestic mutual funds across multiple schemes.

Founded in 1981, KSH International began operations with a magnet winding wire manufacturing facility in Taloja, Raigad, Maharashtra. Over the past four decades, the company has expanded and diversified its product portfolio to include a wide range of standard and specialised magnet winding wires tailored to customer-specific requirements.

According to a CARE Ratings report, KSH International was the third-largest manufacturer of magnet winding wires in India by production capacity in FY25 and the largest exporter in the segment by export revenues during the same period.

On the financial front, the company reported strong growth in FY25. Total income rose 39% year-on-year to ₹1,938.19 crore, compared with ₹1,390.50 crore in FY24. Profit after tax surged 82% to ₹67.99 crore from ₹37.35 crore a year earlier, aided by higher volumes and improved operating leverage. EBITDA also jumped sharply to ₹122.53 crore in FY25 from ₹71.46 crore in FY24.

The momentum continued into FY26, with KSH International reporting total income of ₹562.60 crore and a PAT of ₹22.68 crore in the June quarter. As of June 30, 2025, the company’s total assets stood at ₹793.28 crore, while net worth increased to ₹321.47 crore.

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