There will be limited activity in the primary motherboard market next week, with Kusumgar being the key IPO to watch. The engineered textiles maker will open a Rs 650 crore public issue for subscription on July 8 and close on July 10. On the gray market, the company’s shares already have a GMP of 33% above the offering price.
The issue is entirely an offer for sale of 1.55 crore shares, which means the company will not receive any fresh funds from the IPO. The proceeds will go to the selling shareholders. Kusumgar has set the price range at Rs 398 to Rs 419 per share. At the top end of the price range, the issue size is Rs 650 crore. The shares are proposed to be listed on BSE and NSE with a provisional listing date of July 15.
The minimum order size for retail investors is 35 shares. At the upper price range, this means a minimum investment of Rs 14,665. The distribution is expected to be completed on July 13, with the return and credit of shares likely to take place on July 14. Axis Capital is the lead book-running manager for the issue and Bigshare Services is the registrar.
Kusumgar was founded in 1990 and manufactures woven, impregnated and laminated synthetic fabrics, also known as engineered fabrics. Its products are mainly based on polyamide and polyester yarns and are used for specialized purposes. The company serves industries such as aerospace and defense, industrial and automotive, and outdoor and lifestyle products.
Also read: SBI Mutual Fund is planning an IPO on July 13 to raise $1.2 billion.
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The company also began producing finished products for the aerospace and military industries. These include parachute systems, stealth materials, camouflage networks, deployable shelters and rapid deployment systems. This gives the IPO a differentiated profile compared to the typical consumer, financial services or technology listings seen in the motherboard market.
Its business has technical barriers to entry as customers in the defense, aerospace and industrial segments often require specialized products, testing standards and long approval cycles. Kusumgar says it has developed more than 1,000 types of fabrics and has a staff of more than 2,000 people. However, the company’s financial performance was weaker in FY26. Revenue fell 10% to Rs 711.78 crore from Rs 790.21 crore in FY25. Profit after tax fell 12% to Rs 98.20 crore from Rs 111.99 crore. EBITDA remained virtually unchanged at Rs 187.85 crore. Its net worth increased to Rs 502.95 crore from Rs 257.75 crore and its total borrowings at the end of March 2026 stood at Rs 223.58 crore.
Since the issue is a pure offer for sale, investors will be closely watching the valuation, the company’s growth prospects and whether demand from defense, aerospace and performance textiles customers can reignite earnings growth. The IPO also comes at a time when specialty manufacturing and defense businesses are attracting strong investor interest in the Indian market.
The issue will have a standard reserve structure of no more than 50% of the net offer for qualified institutional buyers, no less than 35% for retail investors and no less than 15% for non-institutional investors.
SME IPO Market
The SME IPO market will also remain active next week. Happy Steels will open the issue of Rs 25 crore NSE SME shares on July 9 and close on July 13. The price range was fixed at Rs 62 to Rs 66 per share.
Devson Catalyst will also open on July 9th and close on July 13th. The issue size of BSE SME shares is around Rs 42.34 crore, with a price range of Rs 112 to Rs 118 per share.
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