Kusumgar IPO fully subscribed within hours, GMP nears 40%
What's the story
Kusumgar Limited's initial public offering (IPO) has been fully subscribed within two hours of its opening today. The ₹650 crore issue was fully booked by 11:55am today, according to National Stock Exchange (NSE) data. The IPO will remain open for subscription until July 10, giving investors a few more days to participate in this investment opportunity. Shares are likely to list on BSE and NSE on July 15.
Investor response
How have the different investor categories performed?
The Kusumgar IPO has seen a strong response from investors, with total bids of 1,31,99,375 against 1,14,68,094 shares offered across all categories. This translates to an overall subscription of nearly 1.15 times. Non-institutional investors (NIIs) led the demand by subscribing to their allotted quota by 2.21 times while retail individual investor (RII) portion was subscribed by 1.36 times and employee reserved category saw a subscription of 78%.
Market performance
Kusumgar shares were commanding a premium in gray market
Kusumgar's shares were commanding a premium of 40% in the unofficial market on July 8. According to IPO Watch, the gray market premium (GMP) was ₹168 per share, indicating a potential listing gain of 40.1% over the upper end of the price band. However, it is important to note that GMP is an unofficial indicator and can vary widely.
Issue details
Everything to know about the IPO
The Kusumgar IPO is entirely an Offer for Sale (OFS) of 1.55 crore equity shares at a price band of ₹398-₹419 per share. The company will not receive any proceeds from the offering. Investors can apply for a minimum of 35 equity shares and in multiples thereafter, with the minimum investment for retail investors being ₹14,665 at the upper price band.
Allocation details
A look at the offer structure
The Kusumgar IPO follows a book-building process with 50% of the net offer reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. The company has reserved shares worth ₹3.5 crore for eligible employees who will get a discount of ₹39 per share on the final issue price. This allocation strategy aims to ensure a fair distribution among different categories of investors.
Pre-issue funding
Pre-IPO placement to anchor investors
Ahead of the public issue, Kusumgar raised ₹193.9 crore from anchor investors on July 7. The company allocated 46,28,877 equity shares at ₹419 each to participants including BlackRock Global Funds, Goldman Sachs Funds, and Kotak Mahindra Life Insurance Company, among others. Several domestic mutual funds such as SBI, ICICI Prudential, and Tata Mutual Fund also participated in this pre-issue funding round.
Business outlook
Financials of Kusumgar
Established in 1990, Kusumgar specializes in woven, coated, and laminated synthetic fabrics for defense, aerospace, automotive, industrial, and outdoor markets. With a portfolio exceeding 1,000 unique SKUs, the company manufactures its products across six facilities in Gujarat and one fabrication plant in Uttar Pradesh. In FY26, Kusumgar's revenue from operations stood at ₹692 crore, up from ₹467.9 crore in FY24. Net profit rose to ₹98.2 crore in FY26 from ₹84.3 crore in FY24.