KSH International IPO: Issue sees weak demand, GMP signals no listing gains - Should you apply?

KSH International IPO Day 1: The initial public offering (IPO) of KSH International opened for subscription today, December 16, and will remain available to investors until Thursday, December 18. The IPO has a price band fixed between ₹365 and ₹384 per share.

KSH International plans to raise ₹710 crore through the public issue, which comprises both fresh shares and an offer for sale. The offer includes a fresh issue of 1.09 crore shares amounting to ₹420.00 crore and an offer for sale of 0.76 crore shares totaling ₹290.00 crore.

The basis of allotment is scheduled for Friday, December 19, 2025, with successful bidders expected to receive shares on Monday, December 22. Refunds for those who do not receive allotment will also be issued on the same day. The company’s shares are slated to debut on the BSE and NSE on December 23, 2025, subject to final approvals.

Funds raised from the fresh portion of the issue will be directed toward debt repayment, installation of new machinery for expansion at the company’s Supa facility, procurement and setup of additional machinery at Chakan in Pune, the installation of a rooftop solar power plant at the Supa location, and general corporate purposes.

The lot size for applications is 39 shares, with the minimum investment for retail participants amounting to ₹14,976 at the upper end of the price band.

Separately, KSH International, a manufacturer of magnet winding wires, announced on Monday that it secured ₹213 crore from anchor investors ahead of the IPO’s opening for public bidding. Institutions participating in the anchor book included HSBC Global Investment Funds, Societe Generale, Kotak Mahindra Life Insurance Company, Edelweiss Life Insurance Company, HDFC Mutual Fund, Kotak Mutual Fund, LIC Mutual Fund, and Bank of Baroda Mutual Fund, according to a BSE filing.

Of the total net offer, not more than 50% has been earmarked for qualified institutional buyers, not less than 35% for retail investors, and not less than 15% for non-institutional investors.

Nuvama Wealth Management Ltd. is acting as the book-running lead manager, while MUFG Intime India Pvt. Ltd. is serving as the registrar for the issue.

KSH International IPO GMP Today

Investor sentiment toward the IPO is muted, as KSH International's grey market premium (GMP) is ₹0 on December 16. This suggested that the stock was likely to debut at ₹384, same as IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

KSH International IPO subscription status

The IPO was subscribed 0.13x by 2:50 pm on Day 1. The retail portion was subscribed 0.23x, and NII portion was booked 0.05x, Qualified Institutional Buyers (QIBs) portion hadn't received any bids till now.

The company has received bids for 16.29 lakh shares against 1.29 crore shares on offer.

Should you subscribe to the IPO?

Angel One has given a positive outlook on the KSH International IPO, noting that the issue appears reasonably valued and supported by strong sector fundamentals. At the upper end of the price band, ₹384, the IPO is priced at a post-issue P/E of 28.68x. The brokerage highlighted the company’s sustained earnings growth, improving return ratios, and leadership position in the magnet winding wires market, along with demand tailwinds from the power, renewables, EV and industrial segments.

“We believe the IPO is fairly priced at a P/E of 28.68x, and with strong earnings traction, improving ratios and favourable industry drivers, the issue offers solid long-term visibility for investors,” Angel One said, assigning a “Subscribe” rating for medium- to long-term investors.

About KSH International

KSH International, part of the KSH Group, began operations in 1981 with the production of magnet winding wires at its Raigad, Maharashtra facility. Over the past four decades, it has expanded into a wide range of standard and specialised magnet winding wires, marketed under the ‘KSH’ brand, which enjoys strong industry recognition.

The company services 117 customers, including Bharat Bijlee, Virginia Transformer Corporation, Bharat Heavy Electricals Ltd, Georgia Transformer Corporation, Hitachi Energy India, Siemens Energy India, Hind Rectifiers, Toshiba Transmission & Distribution Systems (India) Pvt Ltd, CG Power and Industrial Solutions Ltd and Emirates Transformer & Switchgear Ltd.

KSH International also has a notable global presence, exporting to 24 countries as of December 31, 2024. Key markets include the USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh and Japan.

In FY25, revenue rose 39% YoY, while profit after tax increased 82%. As of March 31, 2025, the company reported a debt-equity ratio of 1.17, RoE of 22.77%, PAT margins of 3.51% and a Price-to-Book Value of 7.31.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.