Kusumgar IPO

About Kusumgar IPO

The IPO of Kusumgar Ltd comprises entirely of an offer for sale (OFS), with no fresh issue component. The offer for sale (OFS) entails the sale of shares worth ₹650 crore. The entire OFS sale will be done by the promoters; Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, Siddharth Yogesh Kusumgar HUF. It will be a 100% book-built issue. The price band and the IPO dates are yet to be announced.

The Kusumgar IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

Kusumgar Ltd is a manufacturer of woven, coated, and laminated synthetic fabrics. These are popularly referred to as engineered fabrics. The engineered fabrics industry requires precision manufacturing and high level of technical expertise. Its products cater to four broad industry groups viz.; Aerospace & Defence Fabrics, Aerospace & Defence Solutions, Industrial & Automotive Fabrics, and outdoor & lifestyle fabrics. Most of these have fairly high entry barriers.

Objectives of Kusumgar IPO

Since this is an offer for sale, there will be no fresh funds coming into the company from the IPO. The Offer For Sale (OFS) is intended to:

• Enhance the public image of the company
  
• Get the company listed on the stock exchanges to provide liquidity to shareholders
  
• To offer a more market-driven valuation-based pricing of shares of the company
  

Industry Outlook

Engineered fabrics are a subset of the technical textiles segment. They are more about delivering functional performance under tough conditions, rather than about aesthetic appeal. Engineered fabrics are designed with such special and superior properties like durability, moisture resistance, flexibility, breathability, as well as high tensile strength. It has a lot of interesting applications.

In defence, these engineered fabrics are used in ballistic protection as well as in personal and tactical gears. In aerospace, these engineered fabrics are used in parachutes, hot air balloons, paragliders, aircraft evacuation slides, and floatation devices. The industrial sector uses these engineered fabrics in filtration systems, conveyor belts, and protective coverings. In addition, the automotive sector also uses these fabrics for interior carpets, roofing systems, tapers, airbags, tyre cords, etc.

One of the standout features of the engineered fabrics industry is its ability to develop and deliver high resistance and customized fabric solutions for specific uses. Engineered fabrics also have a focus on sustainability and recycling, which is in sync with the green norms these days. The engineered fabrics segment has high entry barriers due to its specialized nature and strong relationships in the industry. The global engineered fabrics segment has grown from $41.6 billion in 2019 to $62.5 billion in 2024.

Kusumgar Company Information

Incorporated in 1990, Kusumgar Ltd is a manufacturer of woven, coated, and laminated synthetic fabrics—known as engineered fabrics. Its products are based mainly on polyamide and polyester filaments, using polyurethane chemistry.

The company currently has over 1,000 SKUs (stock keeping units), which has allowed them to create entry barriers in the industry. Its expertise in engineered fabrics revolves around lighter fabrics, nylon, complex fabric engineering, coating & lamination abilities and an integrated fabric value chain. The company also enjoys a long and deep relationship with most of its major customers.

Strengths of Kusumgar IPO

• The creation of entry barriers and the advantage of strong relations in the industry is an enduring edge which Kusumgar Ltd has.
• The company has a good spread of clients across India and broad, as well as a product spread across user segments like defence, aerospace, automotive, industrial etc.
• The company has continuously maintained EBITDA margins of around 24% on an average over the last 3 years.
• The company has invested in its technical ability stack by investing in research and development to enhance its product offerings.
• The government of India has adopted a more friendly policy towards engineering fabrics considering its massive export potential over the long run.

Risks of Kusumgar IPO

• The presence of established players like Arvind, SRF Ltd, and Garware Technicals is a risk factor for the company, as they can offer stiff competition.
• The inputs for the company’s products are petrochemical based inputs, which are very vulnerable to the vagaries of crude oil prices.
• The companies in the segment are expected to continuously invest in R&D due to the high risk of technological obsolescence in this segment.
• In this industry, customer preferences and specifications change at short notice and the company needs to be constantly adaptable to such changes. That puts cost pressure on the company.

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: Bigshare Services Private Ltd
• Book Running Lead Managers: Axis Capital, IIFL Capital, Motilal Oswal Investment Banking

Kusumgar Business Model

The company has a business model that caters to the fast-growing needs of the engineered fabrics space. It caters to sectors like defence, aerospace, automotive, industrial and outdoor usages. These are highly critical specifications that need a high level of technical sophistication and customization abilities. The business model has to be highly flexible to adapt to constant specifications changes.

Kusumgar Growth Trajectory

Between FY23 and FY25, the operating revenues of Kusumgar Ltd have grown from ₹301.65 crore to ₹779.00 crore, an accretion of 158.25% over 2 years. During the same period, the return on net worth (RONW) moved from 100.61% to 56.26%. The company has a net debt of ₹205.31 crore as in FY25, with net debt to EBITDA ratio of 1.09X. Its PAT margins have been above 12% in last 3 years.

Kusumgar Market Position

As of March 31, 2025, Kusumgar Ltd has the advantage of a very diversified product mix across defence, aerospace, automotive, and defence usage points. It gets more than three-fourth of its revenue from India and just about a quarter from abroad.

The company has over 1,000 unique fabric configurations (referred to as stock keeping units, or “SKUs”) as at March 31, 2025, to build a niche around synthetic functional and performance fabrics, addressing growing demand in the aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.

How to Check Allotment Status of Kusumgar Ltd IPO?

1. Visit the Registrar’s Website

• Visit the website of Bigshare Services Private Ltd
  
• Choose the name of the company from ‘Select Company’ dropdown
  
• Enter any of these - PAN Number, Application Number, DP/Client ID
  
• Enter the captcha code
  
• Click on Search to check the status
  

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Kusumgar Ltd IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
  
• Application number
  
• PAN
  

Then click 'Submit' to know the allotment status.

3. Check on the BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose 'Kusumgar Ltd' in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the Kusumgar Ltd IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.