The Kusumgar IPO is a ₹650 crore mainboard public issue scheduled to open on 8 July 2026 and close on 10 July 2026. The IPO price band is fixed at ₹398–₹419 per share, with a lot size of 35 shares, and the shares are expected to list on NSE and BSE on 15 July 2026.
Kusumgar Limited is not a regular textile company it operates in the specialised field of engineered synthetic fabrics and technical textiles, serving sectors such as aerospace, defence, industrial manufacturing, automotive applications, and outdoor performance products. These fabrics are designed for strength, durability, protection, and functional performance, unlike everyday apparel fabrics, which are mainly used for fashion or daily wear.
This guide from Acumen Capital Market walks through the confirmed dates, price band, lot size, three-year financials, valuation, and a balanced view of the risks so you can look beyond the grey market chatter and judge the issue on fundamentals.
Knack Packaging IPO Details at a Glance
Here are the key details. New investors can also read Acumen’s guide onthe IPO allotment process to understand how shares are allotted in oversubscribed public issues.
| Particular | Detail |
| IPO name | Kusumgar Limited |
| IPO type | Mainboard, book-built, 100% Offer for Sale |
| Issue size | ~₹650 crore (1,55,13,126 shares, face value ₹1) |
| Price band | ₹398 – ₹419 per share |
| Lot size | 35 shares (min ₹14,665 at upper band) |
| Open – Close | 8 Jul – 10 Jul 2026 |
| Allotment | 13 July 2026 (tentative) |
| Refunds/credit | 14 July 2026 (tentative) |
| Listing date | 15 July 2026 on NSE & BSE (tentative) |
| Lead managers | Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors |
| Registrar | Bigshare Services Pvt. Ltd. |
| Minimum retail investment | ₹14,665 at upper price band |
| Tentative allotment date | 13 July 2026 |
| Tentative listing date | 15 July 2026 |
What does Kusumgar Ltd do?
Kusumgar Ltd, incorporated in 1990 and based in Mumbai, manufactures engineered fabrics woven, coated, and laminated synthetic fabrics built mainly from polyamide and polyester filaments using polyurethane chemistry. In plain terms, these are specialised technical textiles designed for demanding, high-performance uses rather than everyday clothing.
Four business segments
- Aerospace & Defence Fabrics — technical fabrics for defence and aerospace applications.
- Aerospace & Defence Solutions — value-added, application-specific products for the same sectors.
- Industrial & Automotive Fabrics — materials used across industrial and automotive uses.
- Outdoor & Lifestyle Fabrics — fabrics for outdoor, protective and lifestyle products.
Scale of the business
The company offers over 1,000 fabric SKUs and employed around 2,077 people as of 31 March 2026. Its exposure to defence and aerospace gives it a specialised niche with high entry barriers, a genuine strength, but it also ties a meaningful part of its order flow to government and institutional demand cycles, which can be lumpy from year to year.
How much do you need to invest in the Kusumgar IPO?
A retail investor needs a minimum of ₹14,665 to apply one lot of 35 shares at the upper price band of ₹419. Retail applications are capped at 13 lots (below ₹2 lakh). Larger bids fall under the small-HNI (S-NII) and big-HNI (B-NII) categories. The company has also set an employee discount of ₹39 per share for eligible staff.
| Investor category | Lots (shares) | Amount (upper band) |
| Retail (min) | 1 lot (35) | ₹14,665 |
| Retail (max) | 13 lots (455) | ₹1,90,645 |
| S-NII (min) | 14 lots (490) | ₹2,05,310 |
| B-NII (min) | 69 lots (2,415) | ₹10,11,885 |
Bidding at the upper end of the band is generally advisable in a book-built issue, because allotment in an oversubscribed IPO is typically processed at the cut-off / final price. New to this? Our beginner-friendly stock market guide explains how IPO applications and lot sizes work.
Why Is Kusumgar IPO a 100% Offer for Sale?
The Kusumgar IPO is a 100% Offer for Sale, called OFS. Existing shareholders are selling their shares to the public. As for the company itself, it will not issue new shares or receive proceeds from the IPO.
This is different from a fresh issue. In a fresh issue, the company creates new shares and receives money that may be used for expansion, working capital, debt repayment, or general corporate purposes. A pure OFS is not automatically negative. Many mature companies list through an Offer for Sale. Promoters may sell shares to unlock value, meet public shareholding norms, or provide liquidity.
The Kusumgar IPO valuation is not cheap, and FY26 financial performance showed a decline from FY25 levels. Investors should understand the difference between business quality and IPO price. A good business can still be an expensive IPO.
To understand risk-based investing, read Acumen’s guide on the importance of risk management in stock market investing.
Kusumgar IPO Financials
Kusumgar’s financials show a profitable company with strong operating margins, but FY26 was weaker than FY25. The company grew sharply in FY25, then saw a decline in total income and profit in FY26.
| Metric (₹ Cr) | FY24 | FY25 | FY26 |
| Total income | 474.6 | 790.2 | 711.8 |
| Net profit (PAT) | 84.4 | 112.0 | 98.2 |
| EBITDA | 131.9 | 188.4 | 187.9 |
| Net worth | 140.4 | 257.8 | 503.0 |
The main takeaway is simple. Kusumgar is profitable, but investors should not ignore the FY26 dip. Total income declined from FY25 to FY26, and PAT also fell. EBITDA stayed almost flat, which suggests operating profitability remained resilient, but revenue growth was not linear.
For investors who want to understand company numbers better, Acumen’s guide on how to read financial statements is useful before applying for any IPO.
Key ratios
| Ratio | Value (FY26) | What it indicates |
| Return on Equity (RoNW) | 25.82% | Healthy return on shareholder funds |
| Return on Capital (ROCE) | 24.76% | Efficient use of total capital |
| EBITDA margin | 27.15% | Strong operating profitability |
| PAT margin | 13.80% | Solid net profitability |
| Debt-to-Equity | 0.44 | Moderate leverage |
On the surface, these are strong return ratios. Still, the ~₹224 crore of borrowings and the FY26 earnings dip are worth noting. If you want to build the habit of reading a company’s numbers before applying to any IPO, our guide to reading financial statements is a useful next step.
Kusumgar IPO valuation and GMP
At the upper price band of ₹419, Kusumgar is valued at about ₹4,399 crore, with a P/E of roughly 44.8x on FY26 earnings. Because the issue is a pure OFS with no new shares, the pre-issue and post-issue P/E are effectively the same. A P/E in the mid-40s is not cheap for a specialised-textiles business whose earnings dipped in the most recent year, so valuation deserves scrutiny.
On the grey market, the Kusumgar IPO GMP has hovered in a ₹92–₹135 range in early July 2026 (as noted in the dated box above). It is tempting to read a positive GMP as a promise of listing gains — but that is exactly the trap. GMP is unofficial, unregulated by SEBI, thinly traded, and can swing overnight. A more reliable read comes from combining GMP with actual subscription data, especially strong demand from qualified institutional buyers, rather than chasing a grey-market number in isolation. For a deeper explanation, read Acumen’s guide on what is GMP in IPO.
Kusumgar IPO Strengths
1. Specialised Technical Textile Business
Kusumgar operates in engineered fabrics and technical textiles, which are more specialised than ordinary fabric manufacturing. This gives the business a differentiated identity and may create entry barriers through product qualification, customer approval and process expertise.
2. Aerospace and Defence Exposure
Aerospace and defence applications can be attractive because they require reliability and performance. Kusumgar’s presence in defence and aerospace solutions gives it a specialised market position. However, investors should remember that defence-related demand can sometimes be lumpy due to tender cycles and institutional order timing.
3. Diversified End-Use Segments
Kusumgar serves aerospace and defence fabrics, aerospace and defence solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics. This gives the company exposure to multiple end-use markets instead of depending on only one product category.
4. Strong Operating Margins
The company’s EBITDA margin of around 27% shows strong operating profitability. For a manufacturing company, this is a meaningful strength because it suggests product value addition and pricing ability.
5. Established Operating History
Kusumgar has a long operating background and is not a new-age loss-making company. Profitability across recent years gives investors a more concrete base for analysis compared with IPOs where future growth is mostly projection-driven.
Kusumgar IPO Risks
1. 100% OFS Structure
The biggest structural risk is that the IPO proceeds do not go to the company. Public investors are buying shares from existing shareholders, not funding expansion or debt reduction. This makes valuation discipline more important.
2. FY26 Revenue and Profit Decline
Kusumgar’s total income and PAT declined in FY26 compared with FY25. Investors should monitor whether FY26 was a temporary pullback or a sign of slower growth.
3. Rich Valuation
At around 44.8x FY26 earnings, the IPO is priced at a premium. A rich valuation requires strong future growth, stable margins and confidence in business sustainability.
4. Demand Cyclicality
Kusumgar serves industrial, automotive, aerospace, defence, outdoor and lifestyle markets. These segments may be affected by customer spending cycles, export demand, government procurement and broader economic conditions.
5. Working Capital and Borrowings
Manufacturing businesses often require inventory, receivables and supplier credit management. Investors should monitor debt levels, operating cash flow and working capital cycle after listing.
6. GMP-Driven Overconfidence
A strong GMP can attract retail investors, but listing gains are never guaranteed. IPO investors should avoid applying only because of the grey market premium.
Conclusion
The Kusumgar IPO offers exposure to a niche engineered fabrics and technical textiles company with applications across aerospace, defence, industrial, automotive, outdoor and lifestyle markets. The company has strong operating margins, healthy return ratios and a specialised business profile that is different from regular textile companies.
At the same time, investors should stay realistic. The IPO is entirely an Offer for Sale, so Kusumgar Limited will not receive fresh capital. FY26 revenue and profit declined compared with FY25. The valuation is rich at around 44.8x FY26 earnings. GMP may indicate positive sentiment, but it is unofficial and can change quickly.
The best way to approach the Kusumgar IPO is to separate business quality from IPO price. Kusumgar may be a differentiated company, but investors should apply only after understanding the valuation, risks, OFS structure, and their own risk appetite.
To keep learning about IPOs, stock market basics and risk-aware investing, visit Acumen Capital Market, a platform that publishes investor education resources for Indian market participants.
FAQs
1. What is the Kusumgar IPO date, price band and lot size?
The Kusumgar IPO opens on 8 July 2026 and closes on 10 July 2026. The price band is ₹398 to ₹419 per share, and the lot size is 35 shares. At the upper price band, a retail investor needs ₹14,665 to apply for one lot.
2. Is the Kusumgar IPO a fresh issue or an Offer for Sale?
The Kusumgar IPO is a 100% Offer for Sale, not a fresh issue. This means the IPO proceeds will go to the selling shareholders, and Kusumgar Limited will not receive fresh funds for expansion, debt repayment, or working capital. Investors should consider this carefully while evaluating the IPO.
3. What does Kusumgar Limited do, and why is its business different?
Kusumgar Limited manufactures engineered synthetic fabrics and technical textile solutions used in aerospace, defence, industrial, automotive, outdoor and lifestyle applications. Unlike regular apparel textiles, these products are designed for strength, durability, protection and performance, which gives the company a more specialised business profile.
4. Is Kusumgar IPO valuation expensive for investors?
At the upper price band, Kusumgar IPO is valued at around 44.8x FY26 earnings, which is not cheap, especially because FY26 revenue and profit declined compared with FY25. Investors should compare the valuation with growth prospects, margins, cash flow, order visibility and listed peers before applying.
5. Should investors rely on Kusumgar IPO GMP before applying?
No. Kusumgar IPO GMP can show short-term market sentiment, but it is unofficial, unregulated and changes quickly. Investors should not apply only because of GMP. A better decision should be based on the RHP, valuation, financial performance, OFS structure, subscription data and personal risk appetite.
Disclaimer:
This blog is intended for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any securities. Investments in the securities market are subject to market risks. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
