Kusumgar IPO | There is no fresh issue component to the public offering; it is just an offer-for-sale by the promoters.
Kusumgar, a manufacturer of engineered textiles located in Mumbai, has chosen to use the capital markets to acquire money via an IPO. On September 27, it submitted preliminary documents for a Rs 650-crore initial public offering (IPO) to SEBI.
There is no new issue component to the IPO; it is just an offer-for-sale by the promoters.
Therefore, promoters, the selling shareholders, will get all IPO proceeds (minus offer charges), and the firm will not earn any money from its first public offering.
Executing the aforementioned offer-for-sale and listing shares on the markets is the primary goal of the IPO launch.
In order to serve the aerospace and defense, industrial and automotive, and outdoor and leisure sectors, Kusumgar produces woven, coated, and laminated synthetic textiles (engineered fabrics), which accounted for 77%, 15%, and 7% of its total revenue, respectively.
In 2024, the outdoor and leisure market represented 32 percent of the worldwide engineered textiles industry value, while the industrial and automotive segment had 48 percent. The aerospace and defense sector accounted for 8%.
In recent years, the textile firm that faces competition from three listed peers—Garware Technical Fibres, Arvind, and SRF—has recorded strong financial results. In the fiscal year that concluded in March 2025, profit jumped 32.7 percent to Rs 112 crore from Rs 84.4 crore the year before, while sales surged 66.5 percent to Rs 779 crore from Rs 467.9 crore.
Managing the Kusumgar IPO is the responsibility of Motilal Oswal Investment Advisors, IIFL Capital Services, and Axis Capital.