Kusumgar Ltd Eyes Rs 650 Crore via IPO

Kusumgar Ltd, a prominent player in engineered fabric manufacturing, has filed initial papers with the Securities and Exchange Board of India (Sebi) to launch an Rs 650 crore initial public offering (IPO). The company aims to expand its market presence and leverage investor interest through this move.

The IPO is designed purely as an offer-for-sale (OFS) by the company's promoters. As per the details in the draft red herring prospectus filed on Saturday, Kusumgar will not receive any of the proceeds from this endeavour. Instead, all generated funds will be allocated to the selling shareholders.

Established in 1990, Kusumgar specializes in woven, coated, and laminated synthetic fabrics—collectively known as engineered fabrics—used in various industries, including aerospace, defense, and automotive sectors. With robust operations generating Rs 779 crore in revenue and Rs 112 crore in net profit for FY25, the company conducts its manufacturing activities across six facilities in Gujarat and a fabrication site in Uttar Pradesh. Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are managing the books for this IPO.

(With inputs from agencies.)