Kusumgar IPO: Issue received a solid response on Day 01, booked 3.7 times; GMP signals bumper listing

The initial public offering (IPO) of Kusumgar Limited witnessed strong demand from both retail and non-institutional investors on its opening day of bidding on July 08.

The IPO, which will remain open for subscription until July 10, received bids for 3.99 crore shares against the 1.08 lakh shares on offer, resulting in an overall subscription of 3.67 times by the end of Day 1, according to exchange data.

Among the investor categories, the non-institutional investors (NII) segment attracted the highest interest, getting subscribed 7.76 times, followed by the retail investors at 3.76 times. The qualified institutional buyers (QIB) portion was also subscribed by 0.50 times.

Ahead of the issue opening, the company raised ₹193.9 crore from anchor investors. Some of the marquee institutions that participated in the anchor include BlackRock Global Funds—India Fund; Goldman Sachs Funds—Goldman Sachs India Equity Portfolio; and Kotak Mahindra Life Insurance Company.

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.

Investors can bid for a minimum of 35 equity shares and multiples of 35 equity shares thereafter. The company fixes the price band between ₹398 and ₹419 per equity share, having a face value of Re 1.

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

As of today, the grey market premium (GMP) for Kusumgar stood at ₹160 per share, indicating the stock could list above its issue price. Based on the prevailing GMP and the upper price band, the estimated listing price works out to around ₹579 per share, implying a premium of nearly 38%.

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 GMP is only an early indicator and should not be considered the sole basis for an investment decision.

Kusumgar is a manufacturer of woven, coated, and laminated synthetic fabrics, collectively referred to as engineered fabrics. The company offers engineered fabric solutions based on polyamide and polyester filaments and polyurethane chemistry, catering to the high-performance requirements of its customers.

Its products primarily serve four key market segments, including 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 c...