Kusumgar IPO subscribed 12.79x, bHNI leads demand
Kusumgar's ₹650 crore IPO was subscribed 12.79 times, driven by strong demand from Non-Institutional Buyers (bHNI) at 36.56 times. Retail investors subscribed 9.34 times, while QIBs subscribed 1.75 times. The company reported revenue of ₹692 crore and PAT of ₹98.20 crore in FY2026.
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Kusumgar's initial public offering (IPO) was subscribed 12.79 times, driven by significant demand from Non-Institutional Investors. The IPO, a pure Offer for Sale (OFS) of ₹650.00 Crore by promoter selling shareholders, opened on July 8, 2026, and closed on July 10, 2026. As the company will not receive any proceeds, the entire issue amount will go to the selling shareholders, with the listing aimed at enhancing visibility and providing liquidity.
Subscription data shows robust interest across investor categories. Non-Institutional Buyers (bHNI) led the demand with a subscription of 36.56 times, followed by Non-Institutional Buyers (sHNI) at 34.71 times. Retail individual investors subscribed 9.34 times, while Employees bid 3.81 times. Qualified Institutional Buyers (QIBs) recorded the lowest subscription at 1.75 times.
IPO Subscription Status
| Investor Category | Subscription Level |
|---|---|
| Non-Institutional Buyers (bHNI) | 36.56 x |
| Non-Institutional Buyers (sHNI) | 34.71 x |
| Retail | 9.34 x |
| Employees | 3.81 x |
| Qualified Institutional Buyers (QIB) | 1.75 x |
| Total Subscribed | 12.79 x |
The Mumbai-headquartered company specializes in engineered fabrics, including woven, coated, and laminated synthetic fabrics, catering to high-performance requirements in aerospace & defence, industrial & automotive, and outdoor & lifestyle segments. Kusumgar has developed over 1,000 unique fabric configurations (SKUs) as of March 31, 2026, and operates six manufacturing facilities located in Gujarat.
Financial performance for the standalone entity shows revenue from operations reached ₹692.00 Crore in FY2026, a decline from ₹779.00 Crore in FY2025. The company reported a Profit After Tax (PAT) of ₹98.20 Crore in FY2026, compared to ₹111.99 Crore in the previous fiscal year. The debt-to-equity ratio improved to 0.80x in FY2026 from 3.17x in FY2024.
Financial Performance
| Metric (₹ Crore) | FY2024 | FY2025 | FY2026 | | ---: | :--- | :--- | | Revenue from Operations | 467.91 | 779.00 | 692.00 | | Total Revenue | 474.55 | 790.21 | 711.78 | | Total Expenses | 359.48 | 639.43 | 576.82 | | Profit Before Tax | 115.07 | 150.78 | 134.96 | | Profit After Tax | 84.40 | 111.99 | 98.20 | | Total Assets | 584.74 | 632.40 | 905.07 | | Total Equity | 140.36 | 257.75 | 502.95 |
Segment Revenue Mix (FY2026)
| Segment | Revenue Share |
|---|---|
| Aerospace and Defence Fabrics | 31.67% |
| Industrial and Automotive Fabrics | 24.43% |
| Aerospace and Defence Solutions | 22.97% |
| Outdoor and Lifestyle Fabrics | 18.57% |
The DRHP highlights several risk factors, including negative cash flows from operating activities of ₹154.98 Crore in FY2025, though this recovered to a positive ₹28.26 Crore in FY2026. The company also faces customer concentration risks, with the top 10 customers contributing 59.52% of revenue in FY2026, and geographic concentration risks with all manufacturing facilities located in Gujarat. Additionally, the document notes audit trail non-compliance for FY2025 and FY2024.
How will the lack of fresh capital proceeds impact Kusumgar's ability to fund future expansion or R&D initiatives?
What factors might explain the significant divergence between high Non-Institutional demand and the relatively low QIB subscription?
Can the company sustain its improved operating cash flow and debt reduction given the recent decline in revenue and profit?
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