Kusumgar files IPO papers for Rs 650-crore fundraise, entirely via offer for sale

Mumbai-based engineered fabrics maker Kusumgar has decided to tap capital markets to raise funds via initial public offering. It has filed preliminary papers with the SEBI on September 27 for Rs 650-crore IPO.

The IPO comprises entirely an offer-for-sale by promoters, with no fresh issue component.

Hence, the entire IPO proceeds excluding offer expenses will go to promoters, the selling shareholders, while the company will not receive any funds through its maiden public issue.

The main objective of the IPO launch is to carry out the said offer-for-sale and list shares on the exchanges.

Kusumgar manufactures woven, coated and laminated synthetic fabrics (engineered fabrics), catering to aerospace & defence, industrial & automotive, and outdoor & lifestyle segments, which contributed 77 percent, 15 percent and 7 percent, respectively to its topline.

The industrial and automobile segment accounted for 48 percent of the global engineered fabrics industry value in 2024, while the outdoor and lifestyle segment held 32 percent. The defence and aerospace segment made up 8 percent.

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The textile company that competes with three listed peers - Garware Technical Fibres, Arvind, and SRF has reported healthy financial performance in the recent past years. Profit increased sharply by 32.7 percent to Rs 112 crore in the year ended March 2025, up from Rs 84.4 crore in previous year, while revenue during the same period grew by 66.5 percent to Rs 779 crore, compared to Rs 467.9 crore.

Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are appointed to manage the Kusumgar IPO.