Kusumgar Corporates Files Draft Papers for ₹650 Crore IPO

MUMBAI, 29 September 2025 – Kusumgar Corporates Ltd, an engineered fabrics maker, has submitted its Red Herring draft to the Securities and Exchange Board of India for its Initial Public Offering of worth ₹650 crore.

Kusumgar Corporates IPO comprises a ₹250 crore fresh issue and an Offer for Sale of ₹400 crore from existing shareholders. The company intends to apply for a listing on the BSE and NSE, with Axis Capital, JM Financial, and ICICI Securities acting as the lead managers. Link Intime India Pvt. Ltd will serve as the registrar.

Kusumgar Corporates IPO Objectives of the Issue

The IPO proceeds will be directed to fund the working capital needs, capital expenditure on capacity expansion and general corporate needs. This aligns with the company’s long-term strategy to expand its operations and enhance its presence in both local and international markets.

Kusumgar Corporates IPO Business Overview

Kusumgar Corporates has been a frontrunner in the technical textiles merchandising since 1970. The company creates specialized fabrics for defense, aerospace, automotive, and industrial markets. Kusumgar operates production facilities in Gujarat and Maharashtra, and has established long-term relationships with defense agencies and aerospace manufacturers worldwide.

Kusumgar Corporates IPO Financial Performance

Kusumgar Corporates has shown consistent growth over FY23–FY25. Revenue grew from ₹672.4 crore in FY23 to ₹782.1 crore by FY25, and net profit rose from ₹67.5 crore to ₹85.2 crore in this timeframe. EBITDA has grown steadily, reflecting the continued strong demand for advanced textiles.

Kusumgar Corporates IPO Strengths and Risks

The company has a robust presence in defence-grade textiles, strong relationships with established customers, and substantial in-house R&D capabilities. However, the company’s reliance on defence orders, fluctuations in the price of raw materials, and the need for regulatory approval pose considerable challenges.

Outlook

The IPO of Kusumgar Corporates aims to capitalize on growth opportunities in the defence and aerospace textiles sectors while also diversifying its exporter base. Persistent growth in revenue and continued capacity expansions, combined with investments in non-defense and aerospace textiles, will enable the company to enhance its research and development (R&D) innovation. However, while these opportunities are significant, the potential sectoral risks remain key considerations for investors going forward.

REF: https://nsearchives.nseindia.com/corporate/Registration_27092025140310_Kusumgardrhp.pdf

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