The initial public offering (IPO) of Kusumgar has garnered strong investor interest, being fully subscribed on the very first day of bidding. The grey market premium (GMP) has surged to 38%, indicating robust demand for the issue.
Subscription Status and GMP
As of the end of Day 1, the Kusumgar IPO was subscribed 1.2 times overall, with strong participation from all investor categories. The retail portion was subscribed 1.5 times, while the non-institutional investors (NII) portion saw 1.1 times subscription. The qualified institutional buyers (QIB) segment was subscribed 0.8 times.
In the grey market, the shares of Kusumgar are trading at a premium of Rs 38 over the upper price band, translating to a GMP of 38%. This suggests that the listing day could see gains of around 38% for investors who get allotment.
Price Band and Lot Size
The IPO price band has been fixed at Rs 97 to Rs 100 per share. Investors can bid for a minimum of 120 shares in one lot, which amounts to Rs 12,000 at the upper end of the price band. The lot size for retail investors is 120 shares, while for high net worth individuals (HNIs), the minimum bid is 600 shares (5 lots).
IPO Details and Timeline
The IPO is a fresh issue of up to 1.2 crore shares, with no offer-for-sale component. The company plans to raise Rs 120 crore from the public issue. The proceeds will be used for working capital requirements, capital expenditure, and general corporate purposes.
The bidding started on July 9, 2026, and will close on July 13, 2026. The basis of allotment is expected to be finalized on July 16, 2026, and the listing on BSE and NSE is scheduled for July 19, 2026.
Company Profile and Financials
Kusumgar is a diversified company with interests in manufacturing, trading, and services. The company has shown consistent growth in revenue and profitability over the past three fiscal years. For FY26, the company reported a revenue of Rs 450 crore and a net profit of Rs 28 crore, with a profit margin of 6.2%.
According to the company, the funds raised through the IPO will help in expanding its manufacturing capacity and reducing debt. The company also plans to invest in technology upgrades to improve operational efficiency.
Market Sentiment and Analyst Views
Market analysts are positive on the IPO, citing the company's strong financials and growth prospects. "The company has a good track record and the valuation is reasonable compared to peers. The GMP of 38% indicates strong demand, and we expect the listing to be healthy," said an analyst at a leading brokerage firm.
However, investors are advised to consider the risks, including competition and raw material price volatility, before investing.
How to Apply
Interested investors can apply for the IPO through their trading accounts or via the ASBA facility offered by banks. The minimum investment for retail investors is Rs 12,000 for one lot. The IPO is open for all categories of investors.
