Kusumgar IPO: Issue booked 136 times on Day 03; NII, QIB portions see huge demand, GMP signals 39% premium

The initial public offering (IPO) of Kusumgar Limited, which was fully subscribed on the first day of bidding, continued to attract strong investor demand on the final day, with the issue being oversubscribed by more than 135 times.

All investor categories witnessed robust participation. The NII portion was oversubscribed 174 times, while the QIB segment was subscribed 299 times. The retail portion also saw strong demand, with subscriptions reaching 28 times.

Overall, the issue received bids for 147 crore shares against 1.08 crore shares on offer, translating into an overall subscription of 135.80 times.

The Kusumgar IPO is entirely an Offer for Sale (OFS) of 1.55 crore equity shares, aggregating up to ₹650 crore. Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF are the promoter-selling shareholders.

As the issue is entirely an OFS, the company will not receive any proceeds from the public offering. However, it expects the listing of its equity shares to enhance its brand visibility and provide liquidity to its existing shareholders.

The Kusumgar IPO allotment is expected to be finalised on Monday, July 13, while refunds are likely to be initiated on Tuesday, July 14. Shares will be credited to successful applicants' demat accounts on the same day. The stock is scheduled to list on Wednesday, July 15, on both the BSE and NSE.

As of today, the grey market premium (GMP) for Kusumgar stood at ₹163 per share, indicating the stock could list at a premium over its issue price. Based on the prevailing GMP and the upper end of the price band, the estimated listing price works out to around ₹582 per share, implying a listing premium of nearly 39%.

The GMP reflects the difference between an IPO's issue price and its expected listing price in the unofficial market. However, investors should note that the GMP is only an early indicator of listing sentiment and should not be the sole basis for an investment decision.

Kusumgar manufactures woven, coated, and laminated synthetic fabrics, collectively known as engineered fabrics. The company offers engineered fabric solutions based on polyamide and polyester filaments, along with polyurethane chemistry, to meet the high-performance requirements of its customers.

Its products primarily cater to four key segments: aerospace and defence fabrics, aerospace and defence solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about glo...