Kusumgar Files DRHP For IPO To Raise Rs 650 Crore Via Offer For Sale
Kusumgar Ltd. filed preliminary papers with the capital markets regulator SEBI on Monday to raise funds via an initial public offering (IPO). The public offer will include only an offer for sale, with promoters offloading shares worth Rs 650 crore.
About The IPO
The equity shares are proposed to be listed on the National Stock Exchange of India Ltd. (NSE) and BSE Ltd. Promoters Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF will be selling stakes worth Rs 420 crore, Rs 200 crore and Rs 30 crore, respectively.
Book Running Lead Managers
Axis Capital Ltd. and IIFL Capital Services Ltd., and Motilal Oswal are the book-running lead managers for the issue and Bigshare Services Pvt. Ltd. will be the registrar of the issue.
Use Of Proceeds
Since it is an entirely offer for sale issue, the proceeds will go directly to promoters selling shares, “Our Company will not receive any proceeds from the offer (the ‘Offer Proceeds’) and all the offer proceeds will be received by the promoter selling shares after deduction of their respective portion of the offer related expenses and relevant taxes thereon, to be borne by the promoter selling shares”, the RHP stated.
Offer Details
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.
Company Overview
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.
Financial Performance
The company noted a topline of Rs 778.99 crore for FY25 compared to Rs 467.90 crore in FY24. The profit grew to Rs 111.98 crore in FY25 from Rs 84.39 crore in FY24.
Conclusion
Kusumgar Ltd’s decision to raise Rs 650 crore via an IPO through an offer for sale is a significant development in the Indian stock market. The company’s strong financial performance and diverse product offerings make it an attractive investment opportunity for investors. However, it is essential to carefully evaluate the company’s prospects and risks before making any investment decisions.
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