Kusumgar Limited

Kusumgar Limited was incorporated in 1990 and has developed over 1,000 unique fabric SKUs catering to performance-critical applications requiring tensile strength, tear resistance, abrasion resistance, waterproofing, breathability and durability across four business segments: Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics, and Outdoor and Lifestyle Fabrics.

The company operates a vertically integrated manufacturing network comprising six facilities in Gujarat and one fabrication unit in Uttar Pradesh, enabling complete control over weaving, dyeing, coating, lamination, finishing and fabrication processes. Beyond technical fabrics, Kusumgar manufactures finished defence products including parachute systems, camouflage solutions, rapid deployment shelters and decoys, and is an authorised partner for supplying fabrics and parachute systems for the re-entry module of the Gaganyaan project - India's first manned space mission. It serves government organisations and private sector customers across India and international markets with exports contributing approximately 40% of FY26 revenue. As of March 31, 2026, the company had 2,077 employees and promoters Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar and Siddharth Yogesh Kusumgar HUF hold 90.48% pre-IPO stake.

The issue is entirely an offer for sale of ₹650 Cr at a price band of ₹398 to ₹419 per share with a lot size of 35 shares, listing on both BSE and NSE mainboard on July 15, 2026. As this is a pure OFS the company receives no proceeds - all funds go to the promoter selling shareholders.

At the upper band of ₹419 the IPO is valued at a post-issue P/E of 45.01x FY26 earnings, at a premium to Garware Technical Fibres (39.80x) and Arvind (32.72x) but broadly in line with SRF Limited (43.77x). Grey market premium of ₹110-115 (~26% above upper band) signals strong institutional and retail demand. Key strengths include niche high-entry-barrier technical textiles market, 35+ years of operational expertise, 1,000+ proprietary SKUs, Gaganyaan programme association providing defence credibility, vertically integrated six-facility manufacturing infrastructure, and exports contributing 40% of revenue; key risks include revenue declining 10% and PAT declining 12% in FY26 vs FY25, pure OFS structure meaning no fresh capital for company growth, raw material supply risk with no long-term supplier agreements, and RoNW compressing sharply from 56.26% (FY25) to 25.82% (FY26) due to significantly expanded net worth post equity events.