Kusumgar IPO

The Kusumgar IPO is a book-built issue comprising an offer for sale aggregating up to ₹650 crore. The company filed its DRHP with SEBI on Sep 27, 2025. The equity shares are proposed to be listed on the BSE and the NSE. This issue will be managed by a professional team of Book Running Lead Managers (BRLMs), including Axis Capital Ltd., IIFL Capital Services Ltd. and Motilal Oswal Investment Advisors Ltd., while Bigshare Services Private Ltd. is acting as the registrar to the offer.

Company Background

Kusumgar Ltd. was incorporated on June 15, 1990, as a private company and has a rich legacy since 1970, when it started its operations in the textile sector. Over the years, it transformed from a conventional textile company to a niche player in technical textiles. It was changed to a public limited company in 2024.

The company, headquartered in Mumbai, Maharashtra, has established itself as a pioneer in the area of engineered fabrics and can be said to be "a company that starts where others stop." Its main business activity lies in catering to the demanding needs of critical sectors.

Operations & Product Range

The business activities of the Kusumgar Ltd. entity revolve around the research and development, as well as the manufacturing of woven, coated and laminated synthetic fabrics. The firm utilizes polyamides, polyester filaments and polyurethane technology to develop high-performance materials. The company’s product offerings include over 1,000 different fabric combinations (SKUs) that serve 4 main vertical markets:

• • Aerospace and Defense Fabrics: Parachutes, tactical clothing, stealth technology and rapid deployment materials.
• • Aerospace and Defense Solutions: Finished goods such as parachute systems, camouflage nets and deployable shelters.
• • Industrial and Automotive Fabrics: Materials for tapes, hoses, mechanical rubber goods and inflatables.
• • Outdoor and Lifestyle Fabrics: Performance fabrics for sportswear, rainwear, tents and sleeping bags.

Facilities & Capacity

Kusumgar Ltd. has vertically integrated manufacturing facilities that deal with the entire chain of activities from weaving to finishing. The main manufacturing facilities are based in Vapi and Sarigam in Gujarat, which deal with the weaving, coating and lamination processes.

Apart from this, the company also has a fabrication facility in Uttar Pradesh that is solely responsible for the manufacture of finished products such as parachutes and shelters. The facilities are equipped with sophisticated machinery, most of which is imported, to ensure precision and adherence to stringent defense and aerospace requirements.

Brands & Market Presence

Kusumgar Ltd. mainly conducts its business activities under its corporate brand name, "Kusumgar," which is well-known in the B2B technical textile industry. The company has established itself as a brand that supports import substitution, as it supplies materials that were previously imported from other countries.

The company has a well-balanced market, with major business exposure to the domestic as well as international markets. It exports its products to customers in Europe, the USA and Asia. The company possesses key certifications and approvals from defense organizations, which confirm its ability to deliver "defense-grade" materials.

Revenue Streams & Business Model

Kusumgar Ltd. earns revenue mainly from the manufacturing and sale of engineered fabrics, through its 4 major business segments. The company has reported total revenue of Rs 790.21 crore for the financial year ending March 31, 2025. This represents a remarkable repgrowth, with the company registering a one-year revenue CAGR of 67%. The Profit after tax for FY25 was Rs 111.99 crore, indicating healthy profitability margins. The business model of the company is based on offering technical textile solutions to customers in high-value segments where the performance of the product is a crucial factor.

Management & Shareholding

The promoter group of Kusumgar Ltd. consists of Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar and Siddharth Yogesh Kusumgar HUF. Before the IPO, the promoters held approximately 90.48% of the company's equity share capital. As this issue is entirely an offer for sale, the company will see a major dilution in the ownership of existing shareholders.

Board & Key Management

The board and key management personnel of Kusumgar Ltd. are controlled by Siddharth Yogesh Kusumgar, who acts as the chairman and managing director of the company. The management of the company comprises personnel with experience in different functions, while the promoter family has in-depth knowledge of the industry. The board composition comprises independent directors as per the regulatory requirements, ensuring that the company has proper corporate governance.