DRHP Link: https://www.bseindia.com/
Mumbai-based Kusumgar Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).
The IPO, with a face value of Rs 1 per equity share, comprises an offer-for-sale (OFS) of up to Rs 650 crore by promoters, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar and Siddharth Yogesh Kusumgar HUF.
The offer also includes a subscription reservation by eligible employees, and a discount is being offered to eligible employees bidding in the employee reservation portion
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail.
Incorporated in 1990, the 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’s expertise is in manufacturing fabrics where critical performance parameters include tensile strength, tear strength, abrasion resistance, comfort, air permeability, and water proofing, among others. The company has leveraged our process knowledge and product development expertise to manufacture over 1,000 unique fabric configurations (referred to as stock keeping units, or SKUs) as at March 31, 2025, to build a niche for synthetic functional and performance fabrics, addressing growing demand in the aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.
In recent years, the company has built on its expertise and industry knowledge to expand into manufacturing finished products for aerospace and military applications, such as parachute systems, stealth solutions, and rapid deployment systems.
The engineered fabrics industry requires precision and a high level of technical know-how (source: 1Lattice Report). The company leverages its technical strengths and partnerships to focus on high-technology applications. Its business model drives profitable growth, and the company believes it is poised for continued growth, driven by exports, global supply chain shifts, modernisation and indigenisation of military equipment, expanded product lines and technological innovations. The global engineered fabrics industry has grown from US$41.6 billion in 2019 to US$ to US$62.5 billion in 2024.
The company manufacture products primarily for four market segments, aerospace and Defence Fabrics, aerospace and defence solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics, each of which has high entry barriers (source: 1Lattice Report).
The company primarily sell to customers in India.
The company has six manufacturing facilities in Gujarat, and one fabrication unit in Uttar Pradesh. Its vertically integrated capabilities extend across preparatory, weaving, dyeing, printing, finishing, coating, lamination and fabrication. And the company’s integrated setup allows it greater control over quality and delivery.
The company’s final output capacity (comprising the aggregate installed capacity of its processing, dyeing, finishing, printing and coating factories) increased from 48.86 million metres as at March 31, 2024 to 127.80 million metres as at March 31, 2025 due to the commencement of operations at an additional manufacturing facility located at Kothwa, Surat, Gujarat, on April 1, 2024. The company uses this manufacturing facility for scouring, dyeing, finishing, processing and coating nylon and polyester fabrics.
The company’s revenue from operations was Rs 779 crore in FY25 vis-à-vis Rs 301.65 crore during FY23.
Its net profit was Rs 112 crore during FY25 vis-à-vis Rs 37.2 crore during FY23.
Axis Capital Limited, IIFL Capital Services Limited, and Motilal Oswal Investment Advisors Limited are the book running lead managers, and Bigshare Services Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
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