Kusumgar Ltd., an engineered fabrics manufacturer, made a strong stock market debut on Wednesday, with shares listing up to 37% above the initial public offering (IPO) price. The stock opened at ₹578.45 on the BSE, a gain of nearly 37% from the issue price of ₹419, while on the NSE it listed at ₹569, up about 36%. This stellar opening reflects the intense investor demand seen during the IPO subscription period.
IPO Sees Robust Investor Participation
The ₹650-crore IPO was oversubscribed an impressive 128.85 times, according to NSE data. Bids were placed for more than 147.76 crore shares against the 1.14 crore shares on offer. Institutional investors drove much of the demand: the Qualified Institutional Buyer (QIB) portion was subscribed 284.10 times, the Non-Institutional Investor (NII) segment saw 165.46 times subscription, and the retail category was subscribed 26.47 times, indicating broad participation across investor groups.
Offer Comprised Entirely of OFS
The IPO was priced in a band of ₹398 to ₹419 per share and was structured entirely as an Offer for Sale (OFS). Since no fresh shares were issued, the company will not receive any proceeds from the public issue; instead, the funds will go to the existing shareholders selling their stakes. Ahead of the IPO, Kusumgar had raised ₹193.9 crore from anchor investors.
Company Focuses on Engineered Fabrics
Mumbai-based Kusumgar Ltd., founded in 1990, manufactures woven fabrics as well as coated and laminated synthetic varieties. These products are used across sectors such as aerospace and defense, automotive, industrial applications, and outdoor/lifestyle products. The IPO was managed by Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors, who served as the book-running lead managers.