Kusumgar IPO opens today: GMP hints 40% listing gains! Should you apply? Check details
Kusumgar is selling its shares in the price band of Rs 398-419 apiece, applied for a minimum of 35 shares and its multiples to raise Rs 650 crore between July 8-10
- Jul 8, 2026,
- Updated Jul 8, 2026 10:00 AM IST
The initial public offering (IPO) of Kusumgar opens for subscription on Wednesday, July 08. The engineered fabrics manufacturer is selling its shares in the range of Rs 398-419 apeice, for which investors can apply for a minimum of 35 equity shares and its multiples thereafter. The issue will close for bidding on Friday, July 10.
Kusumgar is eyeing to raise a total of Rs 650 crore via IPO, which is entirely an offer-for-sale (OFS) of up to 1,55,13,126 crore equity shares. The company will not receive any proceeds from the issue. Incorporated in 1990, Mumbai-based Kusumgar is a manufacturer of woven, coated, and laminated synthetic fabrics known as engineered fabrics.
As of March 31, 2026, it has developed over 1,000 unique fabric types (SKUs), building a strong position in the synthetic functional and performance fabric space. Its products serve a wide range of industries, including aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.
Ahead of its IPO, Kusumgar raised a total of Rs 193.95 crore from anchor investors as it allocated 46,28,877 equity shares at Rs 419 apeice. Its anchor book included names like Blackrock, Goldman Sach, ISIF Equity Fund, India Acorn Fund, SBI Mutual Fund (MF), Bandhan MF, Axis MF, ICICI MF, Whiteoak Capital, Mirae Asset MF and others.
For the financial year ended on March 31, 2026, Kusumgar reported a net profit of Rs 98.20 crore, while revenue came in at Rs 711.78 crore. It clocked a net profit of Rs 111.99 crore with a revenue of Rs 790.21 crore. At the current valuations, the company commands a total market capitalization of Rs 4,400 crore.
Kusumgar has reserved 50 per cent of the shares for qualified institutional bidders, while non-institutional investors will get 15 per cent allocation. Retail investors will have 35 per cent of shares in this IPO. Last heard, the company was commanding a grey market premium of Rs 168-170 apeice, suggesting nearly 40 per cent listing pop for the investors.
Axis Capital, Motilal Oswal and IIFL Capital are the book running lead managers for Kusumgar IPO, while Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with July 16 as the date of debut. Here's what a host of brokerage firms say about the IPO of Kusumgar:
SBI Securities Rating: Subscribe Kusumgar caters to a marquee clientele underpinned by deep technical knowhow, specialized technical capabilities and customer relationships. Furthermore, co-development arrangements with clients helps widen technical capabilities which act as a competitive edge. It also stands to benefit from the slew of FTAs with other trading nations which is expected to boost export business, said SBI Securities.
"The issue is valued at a FY26 P/E of 44.8 times. Though this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and industry leading EBITDA and PAT margins. We recommend investors to 'subscribe' to the issue for a long-term investment horizon," it added.
Swastika Investmart Rating: Neutral Kusumgar operates in a niche, high-entry-barrier business with strong defence sector tailwinds. Financial performance has weakened, with revenue, EPS, and RoNW declining and FY25 appears to have been a peak year, driven by a one-off CFF parachute order rather than sustainable growth, said Swastika Investmart.
"The IPO is a 100 per cent offer for sale (OFS), with no fresh capital infusion into the company. Consider the issue primarily for potential listing gains, while maintaining a cautious long-term investment view," it added with a 'neutral' view.
Marwadi Financial Services Rating: Subscribe with caution We assign a 'subscribe with caution' rating to this IPO as they operate in markets with high entry barriers and its available at a reasonable valuation considering the growth potential of the company, said Marwadi Financial Services. "However, the company reported negative operating cash flows in FY25, which warrants caution from a long-term investment perspective."
SMIFS Rating: Subscribe Kusumgar also enjoys superior EBITDA margins, PAT margins, RoE and RoCE relative to listed peers, supported by its favourable product mix comprising high-margin aerospace & defence fabrics, custom industrial fabrics, parachute solutions and Nylon 6 & Nylon 66- based products, reflecting its operational efficiency and disciplined capital allocation, said SMIFS.
"Given its strong competitive positioning, robust growth prospects and superior profitability and return metrics relative to peers, we recommend subscribing to the issue from a long-term investment perspective," it adds.
BP Equities Rating: Subscribe Kusumgar is valued at a P/E multiple of 45 times based on FY26 earnings, said BP Equities. "Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a 'subscribe' rating for this issue with a medium to long-term investment horizon," it added.
Ventura Securities Rating: Subscribe Kusumgar is a niche manufacturer of engineered and technical fabrics catering to aerospace, defence, automotive and industrial applications, with integrated capabilities across weaving, coating, lamination and in-house R&D. It has established a strong position in high-performance fabrics, while expanding its export footprint and sustainability initiatives, said Ventura.
Despite a moderation in revenue and profit in FY26, Kusumgar maintained industry-leading EBITDA margins. However, investors should monitor its working capital, cash flow generation and customer concentration, although export growth and a more diversified client base remain positive long-term indicators, it added with a 'subscribe' rating.
Kunvarji Financial Services Rating: Subscribe for long-term Kusumgar specializes in high-performance engineered fabrics for critical applications, including military parachute and aerospace textiles. Its strong technical capabilities, certifications, and long development cycles create high entry barriers and a sustained competitive advantage, said Kunvarji Financial Services. "We recommend to 'subscribe with medium to long term' view."
The initial public offering (IPO) of Kusumgar opens for subscription on Wednesday, July 08. The engineered fabrics manufacturer is selling its shares in the range of Rs 398-419 apeice, for which investors can apply for a minimum of 35 equity shares and its multiples thereafter. The issue will close for bidding on Friday, July 10.
Kusumgar is eyeing to raise a total of Rs 650 crore via IPO, which is entirely an offer-for-sale (OFS) of up to 1,55,13,126 crore equity shares. The company will not receive any proceeds from the issue. Incorporated in 1990, Mumbai-based Kusumgar is a manufacturer of woven, coated, and laminated synthetic fabrics known as engineered fabrics.
As of March 31, 2026, it has developed over 1,000 unique fabric types (SKUs), building a strong position in the synthetic functional and performance fabric space. Its products serve a wide range of industries, including aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.
Ahead of its IPO, Kusumgar raised a total of Rs 193.95 crore from anchor investors as it allocated 46,28,877 equity shares at Rs 419 apeice. Its anchor book included names like Blackrock, Goldman Sach, ISIF Equity Fund, India Acorn Fund, SBI Mutual Fund (MF), Bandhan MF, Axis MF, ICICI MF, Whiteoak Capital, Mirae Asset MF and others.
For the financial year ended on March 31, 2026, Kusumgar reported a net profit of Rs 98.20 crore, while revenue came in at Rs 711.78 crore. It clocked a net profit of Rs 111.99 crore with a revenue of Rs 790.21 crore. At the current valuations, the company commands a total market capitalization of Rs 4,400 crore.
Kusumgar has reserved 50 per cent of the shares for qualified institutional bidders, while non-institutional investors will get 15 per cent allocation. Retail investors will have 35 per cent of shares in this IPO. Last heard, the company was commanding a grey market premium of Rs 168-170 apeice, suggesting nearly 40 per cent listing pop for the investors.
Axis Capital, Motilal Oswal and IIFL Capital are the book running lead managers for Kusumgar IPO, while Bigshare Services is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with July 16 as the date of debut. Here's what a host of brokerage firms say about the IPO of Kusumgar:
SBI Securities Rating: Subscribe Kusumgar caters to a marquee clientele underpinned by deep technical knowhow, specialized technical capabilities and customer relationships. Furthermore, co-development arrangements with clients helps widen technical capabilities which act as a competitive edge. It also stands to benefit from the slew of FTAs with other trading nations which is expected to boost export business, said SBI Securities.
"The issue is valued at a FY26 P/E of 44.8 times. Though this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and industry leading EBITDA and PAT margins. We recommend investors to 'subscribe' to the issue for a long-term investment horizon," it added.
Swastika Investmart Rating: Neutral Kusumgar operates in a niche, high-entry-barrier business with strong defence sector tailwinds. Financial performance has weakened, with revenue, EPS, and RoNW declining and FY25 appears to have been a peak year, driven by a one-off CFF parachute order rather than sustainable growth, said Swastika Investmart.
"The IPO is a 100 per cent offer for sale (OFS), with no fresh capital infusion into the company. Consider the issue primarily for potential listing gains, while maintaining a cautious long-term investment view," it added with a 'neutral' view.
Marwadi Financial Services Rating: Subscribe with caution We assign a 'subscribe with caution' rating to this IPO as they operate in markets with high entry barriers and its available at a reasonable valuation considering the growth potential of the company, said Marwadi Financial Services. "However, the company reported negative operating cash flows in FY25, which warrants caution from a long-term investment perspective."
SMIFS Rating: Subscribe Kusumgar also enjoys superior EBITDA margins, PAT margins, RoE and RoCE relative to listed peers, supported by its favourable product mix comprising high-margin aerospace & defence fabrics, custom industrial fabrics, parachute solutions and Nylon 6 & Nylon 66- based products, reflecting its operational efficiency and disciplined capital allocation, said SMIFS.
"Given its strong competitive positioning, robust growth prospects and superior profitability and return metrics relative to peers, we recommend subscribing to the issue from a long-term investment perspective," it adds.
BP Equities Rating: Subscribe Kusumgar is valued at a P/E multiple of 45 times based on FY26 earnings, said BP Equities. "Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a 'subscribe' rating for this issue with a medium to long-term investment horizon," it added.
Ventura Securities Rating: Subscribe Kusumgar is a niche manufacturer of engineered and technical fabrics catering to aerospace, defence, automotive and industrial applications, with integrated capabilities across weaving, coating, lamination and in-house R&D. It has established a strong position in high-performance fabrics, while expanding its export footprint and sustainability initiatives, said Ventura.
Despite a moderation in revenue and profit in FY26, Kusumgar maintained industry-leading EBITDA margins. However, investors should monitor its working capital, cash flow generation and customer concentration, although export growth and a more diversified client base remain positive long-term indicators, it added with a 'subscribe' rating.
Kunvarji Financial Services Rating: Subscribe for long-term Kusumgar specializes in high-performance engineered fabrics for critical applications, including military parachute and aerospace textiles. Its strong technical capabilities, certifications, and long development cycles create high entry barriers and a sustained competitive advantage, said Kunvarji Financial Services. "We recommend to 'subscribe with medium to long term' view."