Kusumgar IPO Day 2: Check Latest GMP, subscription status, and other details - Apply or not?

Kusumgar IPO Day 2: The initial public offering (IPO) of Kusumgar Ltd. entered its second day of subscription on July 10, after opening for bidding on July 9. The issue will close tomorrow, July 11. The company has fixed the price band at ₹398 to ₹419 per share.

Kusumgar aims to raise ₹650 crore through the IPO, which is entirely an offer for sale (OFS) comprising 1.55 crore equity shares, with no fresh issue component.

The basis of allotment is expected to be finalised on Monday, July 13. Shares are likely to be credited to the demat accounts of successful applicants on Tuesday, July 14, while refunds to unsuccessful bidders will also be processed on the same day. The stock is scheduled to list on the BSE and NSE on Wednesday, July 15.

Since the issue is a 100% OFS, the proceeds from the IPO will go to the selling shareholders and not to the company, as no fresh capital is being raised.

Investor sentiment towards the IPO remains strong. The grey market premium (GMP) stood at ₹160 today, indicating a likely listing price of around ₹579, a premium of over 38% over the upper end of the IPO price band.

The grey market premium reflects investors' willingness to pay more than the issue price ahead of listing.

The IPO was subscribed 3.68 times by the end of Day 1. The retail portion was subscribed 3.77 times, while the NII category was booked 7.77 times. The Qualified Institutional Buyers (QIB) portion received 0.50 times bids, while the employee portion was subscribed 1.82 times.

Overall, the company received bids for 4 crore shares against 1.08 crore shares on offer.

Geojit believes growing export opportunities arising from Free Trade Agreements (FTAs) are expected to support the company's future growth. "Given its strong fundamentals and favourable outlook, we recommend 'Subscribe' for short- to medium-term investors," the brokerage said. It added that, as of March 31, 2026, the company had developed over 1,000 SKUs with performance characteristics such as tensile strength, tear resistance, abrasion resistance, air permeability and waterproofing. Besides engineered fabrics, the company also manufactures finished products for aerospace and military applications, including parachute systems, stealth solutions and rapid deployment systems.

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

The brokerage recommends subscribing to the issue primarily for potential listing gains, while maintaining a cautious view on its long-term investment prospects. It 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, and further to 25.82% in FY26.

The IPO has been priced in the range of ₹398 to ₹419 per share. The lot size has been fixed at 35 shares, requiring a minimum investment of ₹14,665 for retail investors at the upper end of the price band.

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 allotted 46,28,877 equity shares to anchor investors at ₹419 per share.

The anchor book witnessed 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.

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.