Shares of engineered fabric manufacturer Kusumgar Ltd. made a strong stock market debut on Wednesday, listing at a premium of over 36 per cent after its initial public offering (IPO) received an overwhelming response from investors.
The stock opened at ₹569 on the National Stock Exchange (NSE) and ₹578.45 on the Bombay Stock Exchange (BSE), compared with its issue price of ₹419 per share. This translated into listing gains of 36 per cent on the NSE and 37 per cent on the BSE.
IPO draws overwhelming investor interest
Kusumgar’s ₹650-crore IPO witnessed an exceptional response, with the issue being subscribed 128.85 times by the close of bidding.
According to NSE data, investors placed bids for 147.76 crore shares against the 1.14 crore shares available for subscription.
The Qualified Institutional Buyers (QIB) category led the demand, subscribing 284.10 times their allotted quota. The Non-Institutional Investors (NII) portion was subscribed 165.46 times, while the retail investor segment was booked 26.47 times.
The IPO had a price band of ₹398 to ₹419 per share.
Entire issue was an offer for sale
The public issue was entirely an Offer for Sale (OFS), meaning the company itself will not receive any proceeds from the IPO. Instead, the funds raised will go directly to the existing selling shareholders.
Ahead of the public issue, Kusumgar raised ₹193.9 crore from anchor investors, reflecting strong institutional confidence in the company.
Company serves defence and automotive sectors
Founded in 1990, Mumbai-based Kusumgar Ltd. manufactures engineered fabrics, including woven, coated and laminated synthetic fabrics.
Its products cater to sectors such as aerospace and defence, industrial and automotive applications, and outdoor and lifestyle products, making it a specialised player in the technical textiles industry.
The IPO was managed by Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors, which acted as the book-running lead managers.
The strong listing is expected to boost investor confidence in upcoming public offerings amid sustained interest in India’s primary market.