The initial public offering of Kusumgar opens today and closes on Friday. The IPO is priced at ₹398-419 per share with a face value of ₹1 each. The entire ₹650 crore issue is an offer for sale.Market lotInvestors can bid for a minimum of 35 equity shares and in multiples of 35 equity shares thereafter. The company has reserved 50 per cent of the issue for QIBs, up to 35 per cent for retail investors and 15 per cent for non-institutional investors. The company has reserved shares worth ₹3.5 crore for its eligible employees, who will receive them at a discount of ₹39 per share to the final issue price.Anchor investorsThe manufacturer of woven, coated and laminated synthetic fabrics, referred to as engineered fabrics, has garnered ₹193.9 crore from anchor investors ahead of the IPO. The company informed the bourses that it allocated 46,28,877 equity shares at ₹419 per share to anchor investors.Some of the marquee institutions that participated in the anchor include BlackRock Global Funds - India Fund, Goldman Sachs Funds - Goldman Sachs India Equity Portfolio and Kotak Mahindra Life Insurance Company. Amongst equity-oriented schemes, the company has allocated shares to SBI Comma Fund, ICICI Prudential ELSS Tax Saver Fund, Tata Flexi Cap Fund and Mirae Asset Infrastructure Fund.Kusumgar’s revenue from operations stood at ₹692 crore in FY26 as against ₹467.9 crore in FY24. Its net profit was ₹98.2 crore in FY26 as against ₹84.3 crore in FY24.Axis Capital Ltd, IIFL Capital Services Ltd, and Motilal Oswal Investment Advisors Ltd are the book running lead managers, and Bigshare Services Private Ltd is the registrar to the offer.The equity shares are proposed to be listed on BSE and NSE.Company InformationThe company is a manufacturer of woven, coated and laminated synthetic fabrics, referred to as engineered fabrics. The company offers engineered fabrics and solutions focusing on polyamides and polyester filaments and polyurethane chemistry that cater to the high-performance requirements of its customers. The company manufactures products for four market segments: (i) Aerospace and Defence Fabrics; (ii) Aerospace and Defence Solutions; (iii) Industrial and Automotive Fabrics; and (iv) Outdoor and Lifestyle Fabrics. It operates six manufacturing facilities based out of Gujarat, and one fabrication unit in Uttar Pradesh with an output capacity of ~128 million metres as of March 2026.SBI Securities’ view: Kusumgar Ltd, engaged in engineered fabrics manufacturing, caters to a marquee clientele underpinned by deep technical know-how, specialised technical capabilities and customer relationships.Furthermore, co-development arrangements with clients help widen technical capabilities, which act as a competitive edge. The company also stands to benefit from the slew of FTAs with other trading nations which is expected to boost export business. At the upper price band of ₹419, the issue is valued at a FY26 P/E of 44.8x. Though this multiple is higher than its peers, it is in line when adjusted for higher growth across revenue and industry-leading EBITDA and PAT margins. We recommend investors to subscribe to the issue for the long-term investment horizon.Published on July 8, 2026