The stock debuted at Rs 574 on the BSE, a 36.99% premium to its issue price of Rs 419, while on the NSE it listed at Rs 569, up 35.80%.
The strong listing followed overwhelming investor demand during the IPO, which was subscribed 128.85 times against the 1.14 crore shares on offer. The Rs 650 crore issue was entirely an Offer for Sale (OFS), with proceeds going to the selling shareholders rather than the company.
The IPO was priced in the Rs 398–419 band, with the robust subscription reflecting strong investor appetite for the company’s niche business.
What experts’s say?
According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., Kusumgar’s impressive market debut reflects strong investor confidence and positive sentiment, particularly towards the defence sector.
She said the company operates in a specialised engineered fabrics segment with high entry barriers and long-term growth potential, especially in aerospace and defence applications. However, investors should remain mindful of certain challenges, including a decline in revenue, earnings per share (EPS), and return on net worth (RoNW) over the past three years.
The company’s FY25 performance was also supported significantly by a one-time CFF parachute order, raising questions about the sustainability of near-term earnings momentum. Additionally, since the IPO was a complete OFS, Kusumgar did not receive fresh funds from the issue to support future growth initiatives.Nyati recommended investors hold the stock with a strict stop-loss at Rs 520. IPO investors may consider booking partial profits following the sharp listing gains while retaining the remaining holdings with the stop-loss in place.Meanwhile, Emkay has initiated coverage on Kusumgar Speciality Ltd. (KSL) with a ‘Buy’ rating and a target price of Rs. 800, implying an upside potential of around 91%.
The brokerage expects the company to benefit from significant growth opportunities in its high-margin A&D Fabrics business, rising global defence spending and multiple free trade agreements that are favourable for domestic manufacturers. Emkay also highlighted the company’s focus on entering high entry-barrier product segments, which it believes will support industry-leading margins. In addition, it said KSL’s diversified growth drivers should help cushion the impact of weakness in any single business segment.
About Kusumgar
Founded in 1990, Kusumgar is a prominent manufacturer of woven, coated, and laminated engineered synthetic fabrics used across several high-performance industrial applications.
The company develops advanced fabric solutions using polyamide and polyester filaments combined with polyurethane chemistry. Its products are engineered to deliver key performance characteristics such as high tensile strength, tear resistance, abrasion resistance, breathability, comfort, and waterproofing.
With expertise spanning more than three decades, Kusumgar has built a portfolio of over 1,000 unique Stock Keeping Units (SKUs) as of March 31, 2026. Its products serve diverse sectors, including aerospace and defence, industrial and automotive applications, and outdoor and lifestyle markets.
Kusumgar operates an integrated manufacturing ecosystem covering the entire production cycle, including preparatory processes, weaving, dyeing, printing, finishing, coating, lamination, and fabrication.
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The company has seven manufacturing facilities — six located in Gujarat and one fabrication unit in Uttar Pradesh. These facilities are supported by modern infrastructure, advanced manufacturing technology, and dedicated research and development capabilities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
