Synopsis: Kusumgar Limited plans to raise Rs. 650 crore through its IPO, opening on July 8, 2026. The company serves aerospace, defence, automotive, and industrial textile markets.
Kusumgar Limited is launching its Initial Public Offering (IPO) to raise funds through a 100 percent book-built offer. The IPO comprises a pure offer for the sale of 1.55 crore equity shares aggregating up to Rs. 650 crore. There is no fresh issue component in this IPO.
Kusumgar Limited’s IPO price band is set at Rs. 398 to 419 per share. The IPO opens for subscription on July 8, 2026, and closes on July 10, 2026. The shares will be listed on the NSE and the BSE on Wednesday, July 15, 2026. Here’s everything you need to know.
GMP of Kusumgar Limited IPO
As of July 7th, 2026, the shares of Kusumgar Limited in the grey market were trading at a 39.62 percent premium. The shares in the Grey Market traded at Rs. 585. This gives it a premium of Rs. 166 per share over the cap price of Rs. 419.
Overview of Kusumgar Limited
Kusumgar Limited was incorporated in 1990 and manufactures engineered fabrics made from woven, coated, and laminated synthetic materials. The company primarily uses polyamide and polyester filaments along with polyurethane chemistry to develop high-performance fabrics. Over the years, it has built strong expertise in producing functional and performance textiles for a wide range of industries.
As of March 31, 2026, the company had developed more than 1,000 unique stock-keeping units (SKUs). Its products cater to industries such as aerospace and defence, industrial and automotive, and outdoor and lifestyle applications. In recent years, the company has also expanded into manufacturing finished aerospace and defence products, including parachute systems, stealth materials, and rapid deployment systems.
Kusumgar operates through four key business segments. These include Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics, and Outdoor and Lifestyle Fabrics. Its products are used in tactical clothing, camouflage systems, automotive applications, industrial tapes, inflatables, backpacks, tents, rainwear, winter wear, and other performance-based products.
The company serves customers across domestic and international markets with advanced textile solutions designed for demanding applications. Its focus on innovation, product development, and specialised engineering has strengthened its position in the technical textiles industry. As of March 31, 2026, Kusumgar Limited employed 2,077 people across its manufacturing, research, and business operations.
Promoters of Kusumgar Limited
The promoters of Kusumgar Limited are Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF. Collectively, they hold over 90 percent of the company’s pre-offer equity share capital and possess decades of experience in the technical textiles industry.
Kusumgar Limited Selling Shareholders
The IPO consists entirely of an offer for sale by the promoter shareholders. Siddharth Yogesh Kusumgar will sell shares worth up to Rs. 420 crore, Sapna Siddharth Kusumgar will sell shares worth up to Rs. 200 crore, and Siddharth Yogesh Kusumgar HUF will sell shares worth up to Rs. 30 crore.
Lead Managers of Kusumgar IPO
The book-running lead managers for the IPO are Axis Capital Limited, IIFL Capital Services Limited, and Motilal Oswal Investment Advisors Limited. MUFG Intime India Private Limited is acting as the registrar to the issue. These institutions are responsible for managing the IPO process, coordinating the offer, and handling investor applications.
Objectives of the IPO Offer
The IPO is entirely an offer for sale by the existing shareholders. Accordingly, Kusumgar Limited will not receive any proceeds from the issue. The entire proceeds will go to the selling shareholders. The primary objective of the IPO is to achieve listing on the stock exchanges and provide liquidity to the existing investors.
Financial Analysis of Kusumgar IPO
Coming into financial highlights, Kusumgar Limited’s consolidated revenue from operations has decreased from Rs. 779 crore in FY25 to Rs. 692 crore in FY26, which represents a drop of 12.57 percent. The net profit has also decreased by 12.32 percent from Rs. 111.99 crore in FY25 to Rs. 98.20 crore in FY26.
Kusumgar Limited has a PAT Margin of 13.80 percent and an EBITDA Margin of 27.15 percent. Further, Kusumgar Limited’s revenue and net profit have grown at a CAGR of 21.61 percent and 7.87 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROE and ROCE stand at 25.82 percent and 24.76 percent, respectively. Kusumgar Limited has an earnings per share (EPS) of Rs. 9.68, and its debt-to-equity ratio is 0.44x.
Kusumgar Vs Peers
Kusumgar Limited reported revenue from operations of Rs. 692 crore in FY2026. The company reported a basic EPS of Rs. 9.68, a diluted EPS of Rs. 9.31, and a RoNW of 25.82 percent.
In comparison, Garware Technical Fibres Limited reported revenue from operations of Rs. 1,528.79 crore with a basic EPS of Rs. 20.01 and a RoNW of 15.29 percent. Arvind Limited reported revenue from operations of Rs. 9,303.19 crore with a basic EPS of Rs. 15.80 and a RoNW of 10.91 percent. SRF Limited reported revenue from operations of Rs. 15,786.51 crore with a basic EPS of Rs. 61.91 and a RoNW of 13.76 percent.
Kusumgar Limited’s net asset value (NAV) per share stands at Rs. 49.56. In comparison, Garware Technical Fibres Limited reported Rs. 136.44, Arvind Limited reported Rs. 154.47, and SRF Limited reported Rs. 473.74.
Strengths of Kusumgar Limited
- Diversified engineered fabrics portfolio serving multiple high-growth industries.
- Strong presence in aerospace and defence technical textile applications.
- Long operating history with experienced promoters and management.
- Healthy profitability and return ratios compared to several industry peers.
- Growing export presence across North America, Europe, Asia, and Africa.
Weaknesses of Kusumgar Limited
- Revenue depends significantly on large defence and aerospace contracts.
- Raw material prices remain exposed to petrochemical and crude oil volatility.
- Business faces intense competition from domestic and global technical textile companies.
- High dependence on imported machinery and continuous technology upgrades.
- Customer-specific orders can create fluctuations in annual revenue and profitability.
Conclusion
Kusumgar Limited’s IPO offers investors exposure to India’s expanding technical textiles and engineered fabrics industry. The company benefits from a diversified product portfolio, strong defence capabilities, healthy margins, and experienced promoters. However, investors should also consider customer concentration, project-based revenue fluctuations, and raw material price risks before making an investment decision.
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