Kusumgar IPO Day 1: Issue subscribed 3.06x so far. GMP hints 40% listing pop. Should you apply or not?

The Kusumgar IPO subscription opens on Wednesday, 8 July, and will close on Friday, 10 July. Ahead of the public issue, the manufacturer of woven, coated and laminated synthetic fabrics, also known as engineered fabrics, raised ₹193.9 crore from anchor investors.

The company informed the stock exchanges that it allotted 46,28,877 equity shares to anchor investors at ₹419 per share.

The anchor book saw participation from several marquee investors, including BlackRock Global Funds – India Fund, Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, and Kotak Mahindra Life Insurance Company, among others.

The Kusumgar IPO lot size has been fixed at 35 equity shares, and applications can be made in multiples of 35 shares thereafter.

In terms of allocation, up to 50% of the issue has been reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.

The company has also reserved shares worth ₹3.5 crore for eligible employees, who will receive a discount of ₹39 per share to the final issue price.

The basis of allotment for the Kusumgar IPO is expected to be finalised on Monday, 13 July. Refunds are likely to be initiated on Tuesday, 14 July, while shares will be credited to successful applicants' demat accounts on the same day. Kusumgar shares are tentatively scheduled to list on the BSE and NSE on Wednesday, 15 July.

Kusumgar IPO GMP today

Kusumgar IPO GMP today is +168. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Kusumgar share was ₹587 apiece, which is 40.10% higher than the IPO price of ₹419.

Based on the recent seven sessions of grey market activity, the IPO GMP is rising and is anticipated to deliver a solid listing. Experts note that the minimum GMP is ₹135.00, while the maximum is ₹171.

Kusumgar IPO review

According to Swastika Investmart, Kusumgar operates in a niche business with high barriers to entry and stands to benefit from strong tailwinds in India's defence sector.

However, the brokerage highlighted that the company's financial performance has weakened in recent years, with revenue, earnings per share (EPS), and return on net worth (RoNW) declining. RoNW fell sharply from 86.13% in FY24 to 56.26% in FY25, then to 25.82% in FY26.

Swastika Investmart believes FY25 was likely a peak year, supported by a one-time order for CFF parachutes rather than sustainable business growth. It also noted that the IPO is a 100% offer-for-sale (OFS), with no fresh capital being raised by the company.

Given these factors, the brokerage recommends subscribing to the issue primarily for potential listing gains, while maintaining a cautious view on its long-term investment prospects.

Kusumgar IPO details

The Kusumgar IPO is a pure OFS by the promoters, with no fresh issue of shares. Consequently, the company will not receive any proceeds from the public offering, and the entire issue proceeds will go to the selling shareholders—Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF.

Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are the book-running lead managers for the IPO.

Kusumgar IPO subscription status

Subscription for the public issue will open at 10:00 IST on Wednesday's deals.

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