Kusumgar set to list at 39% premium after 129x IPO demand
Indian engineered fabrics manufacturer Kusumgar begins trading today after a Rs 650 crore offer-for-sale drew overwhelming institutional demand, signalling robust investor appetite for niche industrial stocks.
Kusumgar shares begin trading today following an initial public offering that was subscribed 128.85 times. The Rs 650 crore issue, priced at the top of its Rs 398-419 band, attracted heavy bidding across all investor categories against a base of 1.14 crore shares.
Qualified Institutional Buyers drove the demand, subscribing their portion 284.10 times, while Non-Institutional Investors followed at 165.46 times. Retail investors bid 26.47 times their allocated quota. The entire offering was structured as an Offer for Sale, meaning all proceeds went to existing shareholders rather than the company.
Unofficial grey market trading suggests a strong debut, with a premium of around Rs 162 per share. This indicates an expected listing price of roughly Rs 581, representing a 39% jump over the upper issue price. While this points to bullish sentiment ahead of the open, grey market premiums remain unofficial indicators and do not guarantee intraday performance.
The institutional frenzy is anchored in Kusumgar's recent financial trajectory. Founded in 1990, the company manufactures engineered synthetic fabrics for the aerospace, defence, automotive, and outdoor lifestyle sectors. Revenue grew from Rs 467.9 crore in FY24 to Rs 692 crore in FY26, and net profit rose from Rs 84.3 crore to Rs 98.2 crore over the same period.
Kusumgar supports this growth with an integrated manufacturing ecosystem spanning seven facilities, six of which are in Gujarat. The company handles the entire production cycle internally and has built a portfolio of over 1,000 unique stock keeping units as of March 31, 2026.
For market participants, the listing provides a clear signal on how public investors value India's specialized engineering sectors. The heavy institutional subscription suggests fund managers are hunting for niche manufacturers with steady profit growth, even when the IPO structure offers no fresh capital. Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors managed the offer.
