The primary market will see limited mainboard activity next week, with Kusumgar set to be the key IPO to watch. The engineered fabrics maker will open its Rs 650 crore public issue for subscription on July 8 and close it on July 10. In the grey market, the company's shares are already commanding a GMP of 33% over the issue 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 fixed the price band at Rs 398 to Rs 419 per share. At the upper end of the price band, the issue size stands at Rs 650 crore. The shares are proposed to be listed on both BSE and NSE, with a tentative listing date of July 15.
The minimum bid size for retail investors is 35 shares. At the upper price band, this means a minimum investment of Rs 14,665. The allotment is expected to be finalised on July 13, while refunds and credit of shares are likely on July 14. Axis Capital is the book-running lead manager to the issue, and Bigshare Services is the registrar.
Kusumgar was incorporated in 1990 and makes woven, coated and laminated synthetic fabrics, also known as engineered fabrics. Its products are mainly based on polyamide and polyester filaments and are used in specialised applications. The company serves sectors such as aerospace and defence, industrial and automotive, and outdoor and lifestyle products.
The company has also moved into finished products for aerospace and military use. These include parachute systems, stealth materials, camouflage nets, deployable shelters and rapid deployment systems. This gives the IPO a differentiated profile compared with the usual consumer, financial services or technology listings seen in the mainboard market.
Its business has technical entry barriers because customers in defence, aerospace and industrial segments often require specialised products, testing standards and long approval cycles. Kusumgar says it has developed more than 1,000 fabric types and has a workforce of over 2,000 employees.
The company’s financial performance, however, was weaker in FY26. Revenue fell 10% to Rs 711.78 crore from Rs 790.21 crore in FY25. Profit after tax declined 12% to Rs 98.20 crore from Rs 111.99 crore. EBITDA was almost flat at Rs 187.85 crore. Its net worth improved to Rs 502.95 crore from Rs 257.75 crore, while total borrowings stood at Rs 223.58 crore at the end of March 2026.
Since the issue is a pure offer for sale, investors will closely watch valuation, the company’s growth outlook and whether demand from defence, aerospace and performance fabric customers can revive revenue growth. The IPO also comes at a time when speciality manufacturing and defence-linked businesses have drawn strong investor interest in the Indian market.
The issue will have the standard reservation structure, with not more than 50% of the net offer for qualified institutional buyers, not less than 35% for retail investors and not less than 15% for non-institutional investors.
The SME IPO market will also remain active next week. Happy Steels will open its Rs 25 crore NSE SME issue on July 9 and close it on July 13. The price band has been fixed at Rs 62 to Rs 66 per share.
Devson Catalyst will also open on July 9 and close on July 13. The BSE SME issue size is about Rs 42.34 crore, with a price band of Rs 112 to Rs 118 per share.
