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Engineered fabrics manufacturer Kusumgar Ltd. made a strong debut on the stock exchanges on Wednesday, with its shares listing at a premium of up to 37% over the initial public offering (IPO) price. The stock opened at Rs. 578.45 on the BSE, reflecting a gain of nearly 37% over the issue price of Rs. 419. On the NSE, it was listed at Rs. 569, up around 36%, extending the optimism seen during the IPO subscription period.
The Rs. 650-crore IPO received an overwhelming response from investors, closing with an overall subscription of 128.85 times. According to NSE data, bids were placed for more than 147.76 crore shares against 1.14 crore shares available for subscription.
Institutional investors drove the demand. The Qualified Institutional Buyer (QIB) portion was subscribed 284.10 times, while the Non-Institutional Investor (NII) segment saw 165.46 times subscription. The retail category was subscribed 26.47 times, indicating healthy participation across investor groups.
The IPO was priced in a band of Rs. 398 to Rs. 419 per share and was structured entirely as an Offer for Sale (OFS). Since no fresh shares were issued, the company will not receive any proceeds from the public issue. Instead, the funds will go to the existing shareholders selling their stakes. Ahead of the IPO, Kusumgar had raised Rs. 193.9 crore from anchor investors.
Also Read: NSE IPO Eyes September Launch & Targets $3 Billion Raise with 6% Offer
The Mumbai-based Kusumgar Ltd. was founded in 1990. They manufacture woven fabrics, as well as coated and laminated synthetic varieties, that are used across sectors such as aerospace and defense, automotive, industrial applications, and outdoor or lifestyle products. The IPO was handled by Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors, who served as the book-running lead managers for the whole process.
