Kusumgar makes a strong stock market debut; shares list at 37% premium

Shares of Kusumgar made a stellar stock market debut on Wednesday, July 15 as the engineering fabric maker was listed at Rs 574 on BSE, a premium 36.99 per cent over the issue price of Rs 419. Similarly, the stock kicked-off its maiden trading session with a premium of 35.80 per cent over the given issue price at Rs 569 on NSE.

Retail investors, who got a single lot of 35 equity shares, made a profit of Rs 5,250-5,425 on their investment of Rs 14,665 as of the listing price. Similarly, HNI investors who got 14 lots consisting of 490 equity shares, made a profit of Rs 73,500-75,950 on their investment of Rs 2,05,310.

However, listing of Kusumgar shares have been marginally below the expectations. Just ahead of its listing, shares of Kusumgar were commading a grey market premium of Rs 160-165 apeice, suggesting a listing pop of 38-40 per cent for the investors. However, its GMP has remained around Rs 160-levels since the bidding for the IPO kicked-off.

The IPO of Kusumgar ran for subscription between July 08 and July 10. The company had offered its shares in the price band of Rs 398-419 per share with a lot size of 35 shares. It raised a total of Rs 650 crore from its maiden offering, which was entirely an offer-for-sale (OFS) of up to 1,55,13,126 equity shares.

The issue was subscribed a solid 128.85 times, attractin bids for Rs 62,00 crore. The quota for qualified institutional bidders (QIBs) was subscribed a whopping 284.10 times, while the allocation for non-institutional investors (NIIs) was subscribed 165.46 times. The portion for retail investors and employees were booked 26.47 times and 10.48 times, respectively.

Mumbai-based Kusumgar is a manufacturer of woven, coated, and laminated synthetic fabrics known as engineered fabrics. It has developed over 1,000 unique fabric types, building a strong position in the synthetic functional and performance fabric space. Its products serve a wide range of industries like aerospace and defence, industrial and automotive, outdoor and other segments.

Brokerage firms, tracking the issue, were largely positive on it and suggested to subscribe the IPO. Axis Capital, IIFL Capital and Motilal Oswal Investment Advisors were the book running lead managers for Kusumgar IPO, while Bigshare Services was appointed as the registrar for the IPO.