Kusumgar IPO: The initial public offering (IPO) of Kusumgar is set to hit the primary market on Wednesday, July 8, opening a 3-day subscription window. The Rs 650 crore IPO comprises entirely an offer for sale (OFS) and has been priced in the range of Rs 389 to Rs 419 per share.
Kusumgar IPO recommendation
Ahead of the subscription period, brokerages including SBI Securities and SMIFS Limited have shared their views and recommendations on the issue. Here’s what the brokerages have to say about the IPO.
SBI Securities suggests subscribing IPO
SBI Securities has assigned a ‘Subscribe’ rating for the Kusumgar IPO with a long-term investment horizon, saying the company is well placed to benefit from its deep technical capabilities and strong customer relationships.
The brokerage said Kusumgar’s expertise in engineered fabrics, co-development arrangements with global clients and integrated manufacturing provide a competitive advantage in niche, high-performance textile segments.
While the IPO is priced at 44.8 times FY26 earnings, SBI believes the valuation is justified by the company’s stronger growth prospects and industry-leading EBITDA and profit margins. It also expects export opportunities to improve with global trade agreements.
Risk Factors: SBI Securities flagged risks including customer concentration, rising working capital requirements, weak operating cash flows, ongoing legal proceedings, and dependence on exports, which could be affected by changes in global trade policies or geopolitical developments
SMIFS Securities’ superior profitability to ADD support
SMIFS Securities has also recommended subscribing to the Kusumgar IPO from a long-term perspective, citing the company’s strong positioning in the engineered fabrics market.
The brokerage highlighted Kusumgar’s high entry barriers, supported by over five decades of technical expertise, vertically integrated manufacturing and long customer qualification cycles that create high switching costs.
It expects revenue growth to recover from FY27, driven by execution of a deferred Rs 237 crore defence contract, expanding exports and rising demand across aerospace, defence, industrial and outdoor segments.
Risk Factor: However, the brokerage noted FY26 revenue weakness due to project delays and cautioned that raw material price volatility, regulatory compliance costs and intense competition remain key risks.
Kusumgar IPO Timeline
- The IPO of Kusumgar is scheduled to open for subscription on Wednesday, July 8, 2026, and will close on Friday, July 10. (Kusumgar IPO Subscription Date)
- The basis of allotment is expected on July 13, followed by refunds and share credits on July 14. (Kusumgar IPO Allotment Date)
- The company’s shares are likely to list on exchanges on Wednesday, July 15, 2026. (Kusumgar IPO Listing Date)
Kusumgar IPO usage of funds
As per the company’s RHP, the funds raised using the IPO will be used to achieve the benefits of listing the equity shares on the stock exchanges.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
