The company has fixed the price band at ₹398-419 per equity share. Ahead of the issue opening, the IPO is commanding a grey market premium (GMP) of around 40%, indicating healthy demand in the unofficial market.
However, investors should note that GMP is only an informal indicator of market sentiment in the unlisted market and can change significantly before listing.
The ₹650-crore IPO is entirely an offer for sale (OFS) of 1.05 crore equity shares by existing promoters. Since the issue does not include a fresh issue of shares, Kusumgar will not receive any proceeds from the IPO, with the entire amount going to the selling shareholders.
Half of the issue has been reserved for qualified institutional buyers (QIBs), while 35% is allocated to retail investors and the remaining 15% to non-institutional investors (NIIs).
At the upper end of the price band, Kusumgar is valued at a market capitalisation of around ₹4,418 crore, translating into a FY26 P/E multiple of about 45x and an EV/EBITDA multiple of nearly 25x.
About the company
Established in 1990, Kusumgar manufactures woven, coated and laminated engineered fabrics using polyamide and polyester filaments.
The company operates a vertically integrated manufacturing setup across six facilities in Gujarat, covering weaving, coating and lamination, along with a fabrication unit in Uttar Pradesh.
Kusumgar serves four key end markets:
Aerospace & defence fabrics and solutions: 55% of FY26 revenue
Industrial & automotive fabrics: 24%
Outdoor & lifestyle fabrics: 19%
Others: 2%
While aerospace and defence remains its largest segment, the outdoor and lifestyle business has emerged as the fastest-growing, expanding more than four-fold over the last three years.
Around 85% of revenue comes from private-sector customers, with government entities contributing the remaining 15%.
Exports have become an increasingly important growth driver, accounting for 40% of FY26 revenue, up from 26% in FY24, led by strong demand from Germany. Germany contributed 11% of FY26 revenue, while Europe and the US accounted for 18% and 9%, respectively.
The company offers a portfolio of more than 1,000 engineered fabric SKUs.
Key strengths
– Presence in high-entry-barrier sectors such as aerospace, defence, automotive and industrial applications.
– Strong focus on customised, high-value solutions for aerospace and defence customers.
– Vertically integrated manufacturing model supporting quality control and operational efficiencies.
– Potential export tailwinds from the UK-India Free Trade Agreement and the proposed India-EU trade pact.
Key risks
– Defence orders remain lumpy and project-driven.
– Capacity utilisation has declined across key manufacturing operations. Processing and coating utilisation fell to 49.5% in FY26 from 94% in FY24, while weaving utilisation declined to 62.5% from 80%.
– Customer concentration remains high, with the top 10 customers contributing nearly 60% of revenue without long-term contracts.
– Supplier concentration is also significant, with the top 10 suppliers accounting for around 51% of procurement.
The basis of allotment is expected to be finalised on July 13, while the shares are scheduled to list on the stock exchanges on July 15.
