Kusumgar IPO closes 136x subscribed on strong institutional demand

Kusumgar Limited’s initial public offering closed with bids totaling 147 crore shares against 1.08 crore shares on offer, an oversubscription of 135.80 times. The issue, which was fully covered on its first day, saw demand accelerate sharply by the close of the third day. The subscription was heavily skewed toward institutional buyers, with the qualified institutional buyer (QIB) portion booked 299 times and non-institutional investors (NIIs) submitting bids for 174 times their allocated quota. Retail individual investors oversubscribed their portion 28 times.

The offering is structured entirely as an offer for sale of 1.55 crore equity shares, aggregating up to ₹650 crore. Because it is a pure secondary sale, the company will not receive any proceeds from the exercise. The selling shareholders are promoters Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF. Kusumgar expects the primary benefit of the listing to be enhanced brand visibility rather than an infusion of fresh capital.

The company operates in a specialized industrial niche, manufacturing engineered fabrics using polyamide, polyester filaments, and polyurethane chemistry. Its product lines consist of woven, coated, and laminated synthetic textiles designed for high-performance requirements. These materials cater to four main segments: aerospace and defense fabrics, aerospace and defense solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics. Exposure to these regulated, high-barrier sectors likely underpinned the strong institutional appetite.

Unofficial trading in the grey market suggests the heavy subscription will translate into a significant first-day premium. The grey market premium for Kusumgar currently sits at ₹163 per share. Factoring in the upper end of the issue price band, this indicates an estimated listing price of approximately ₹582 per share. Such a debut would represent a premium of nearly 39%, though grey market indicators remain unofficial early sentiment rather than guaranteed trading outcomes.

The post-offering timeline moves quickly. Share allotment is expected to be finalised on Monday, July 13. Refunds to unsuccessful bidders will begin on Tuesday, July 14, the same day shares are credited to successful applicants' demat accounts. The stock is scheduled to begin trading on both the BSE and NSE on Wednesday, July 15.