Kusumgar's Rs 650-crore IPO opens tomorrow; GMP signals nearly 40% listing gain

Kusumgar, one of India's leading manufacturers of engineered synthetic fabrics, is set to launch its Rs 650-crore Initial Public Offering (IPO) on July 8, with investor interest running high ahead of the subscription window.

The IPO is already attracting strong buzz in the grey market, where it is commanding a Grey Market Premium (GMP) of around Rs 166 per share. This suggests a potential listing gain of nearly 40% over the upper end of the price band. Based on the current GMP, the stock is expected to debut at around Rs 585 per share, indicating robust pre-listing demand.


The company has fixed the price band at Rs 398–419 per equity share. The public issue will remain open for subscription from July 8 to July 10, 2026.

The IPO is entirely an Offer for Sale (OFS) worth Rs 650 crore, meaning the company will not receive any proceeds from the issue as no fresh shares are being issued. Investors can apply for a minimum of 35 equity shares and in multiples of 35 thereafter. As of the offer date, Kusumgar has 104.99 million outstanding equity shares with a face value of Re 1 each.

The issue is being launched through the book-building process, with up to 50% of the net offer reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).

In a gesture to reward its workforce, Kusumgar has earmarked shares worth Rs 3.5 crore for eligible employees. They will also receive a discount of Rs 39 per share on the final issue price.

Strong financial growth

Kusumgar has demonstrated robust financial performance over the past two years. The company's revenue from operations increased to Rs 692 crore in FY26, compared with Rs 467.9 crore in FY24, reflecting healthy business expansion across its key segments.

Its net profit also grew steadily, rising to Rs 98.2 crore in FY26 from Rs 84.3 crore in FY24, highlighting improved profitability and operational efficiency.

Issue management and listing

The IPO is being managed by Axis Capital Limited, IIFL Capital Services Limited, and Motilal Oswal Investment Advisors Limited, who are acting as the Book Running Lead Managers. Bigshare Services Private Limited is the registrar to the issue.

The company's equity shares are proposed to be listed on both the BSE and the NSE.

About Kusumgar

Established in 1990, Kusumgar is a leading manufacturer of woven, coated, and laminated engineered synthetic fabrics designed for demanding industrial and performance applications. The company specialises in advanced fabric solutions based on polyamide and polyester filaments combined with polyurethane chemistry, enabling products that meet stringent performance standards.

Its engineered fabrics are designed to deliver superior tensile strength, tear resistance, abrasion resistance, comfort, air permeability, and waterproofing, making them suitable for mission-critical and high-performance applications.

Leveraging decades of manufacturing expertise and strong product development capabilities, the company has developed more than 1,000 unique Stock Keeping Units (SKUs) as of March 31, 2026. These products cater to a diverse range of industries, including aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.

Kusumgar operates a vertically integrated manufacturing platform, encompassing preparatory processes, weaving, dyeing, printing, finishing, coating, lamination, and fabrication. Its manufacturing footprint includes six facilities in Gujarat and one fabrication unit in Uttar Pradesh, supported by modern infrastructure, advanced technology, and strong research and development capabilities.

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