Kusumgar Ltd. Files for Rs 650 Crore IPO Through Promoter Share Sale
Kusumgar Ltd., an engineered fabrics manufacturer, has filed its DRHP with SEBI for an IPO to raise approximately Rs 650 crore through an offer for sale by promoters. The IPO consists entirely of OFS with no fresh issue. Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF are offering shares. The company plans to list on NSE and BSE, with Axis Capital, IIFL Capital Services, and Motilal Oswal as book-running lead managers. Kusumgar Ltd. reported revenue of Rs 778.99 crore and profit of Rs 111.98 crore in FY25, showing significant growth from the previous year.
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Kusumgar Ltd., a prominent engineered fabrics manufacturer, has taken a significant step towards going public by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise approximately Rs 650 crore through an initial public offering (IPO) that consists entirely of an offer for sale (OFS) by its promoters.
Offer Details
The IPO structure reveals that the entire offering will be an OFS, with no fresh issue of shares. The promoters participating in the share sale include:
- Siddharth Yogesh Kusumgar: Offering shares worth Rs 420 crore
- Sapna Siddharth Kusumgar: Offering shares worth Rs 200 crore
- Siddharth Yogesh Kusumgar HUF: Offering shares worth Rs 30 crore
It's important to note that since this is purely an offer for sale, all proceeds from the IPO will go directly to the selling promoters rather than the company itself.
Listing and Management
Kusumgar Ltd. plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company has appointed a trio of reputable financial institutions to manage the book-running process:
- Axis Capital
- IIFL Capital Services
- Motilal Oswal
These book-running lead managers will play a crucial role in facilitating the IPO process and ensuring its smooth execution.
Company Performance
Kusumgar Ltd., incorporated in 1990, has shown strong financial performance in recent years:
| Fiscal Year | Revenue (Rs Crore) | Profit (Rs Crore) |
|---|---|---|
| FY25 | 778.99 | 111.98 |
| FY24 | 467.90 | 84.39 |
The company has demonstrated significant growth, with revenue increasing by approximately 66.5% year-over-year. Similarly, profit saw a substantial rise of about 32.7% during the same period.
Industry Position
As an engineered fabrics manufacturer with over three decades of experience, Kusumgar Ltd. has established itself as a notable player in the textile industry. The company's decision to go public through this IPO could potentially provide it with increased visibility and access to capital markets for future growth opportunities.
Investors and market observers will be keenly watching the progress of Kusumgar Ltd.'s IPO as it moves through the regulatory process with SEBI. The success of this offering could provide insights into the current appetite for manufacturing sector IPOs in the Indian market.
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