Kusumgar IPO: Issue booked nearly 10x so far; NIIs category takes lead on day 2

The initial public offering (IPO) of Kusumgar continues to see rising interest on the second day of subscription on Thursday, July 9.

Until 2:40 PM, the issue has secured 9.96 times with bids for 11,42,67,090 shares as against 1,14,68,094 shares on offer, according to the NSE data.

The category for non-institutional investors (NIIs) fetched 26.15 times of subscription, while the quota for retail individual investors (RIIs) received 7.88 times subscription. The portion for Qualified Institutional Buyers (QIBs) saw subscription of 1.67 times at the time of writing the article.

The price band for the issue has been set at ₹398 to ₹419 per share.

The ₹650 crore initial share sale is exclusively an offer for sale (OFS) of shares by promoters Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar and Siddharth Yogesh Kusumgar HUF.

The company will not receive any proceeds from the IPO as there is no fresh issue component. The funds raised will go to promoter selling shareholders.

"Our company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders. Listing will also provide a public market for the equity shares in India," the Mumbai-based company said in its red herring prospectus (RHP).

Kusumgar IPO lot size

A lot consists of 35 shares and multiples thereof. Half of the net offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

• Basis of allotment: July 13

• Refund: July 14

• Credit of equity shares to Demat: July 14

• Listing on the NSE and the BSE: July 15

Motilal Oswal Investment Advisors, IIFL Capital Services and Axis Capital are the issue's book-running lead managers, while Bigshare Services serves as the registrar.

Kusumgar makes woven, coated and laminated synthetic fabrics, known as engineered fabrics. It offers engineered fabrics and solutions focused on polyamides, polyester filaments and polyurethane chemistry to serve the high-performance requirements of customers.

It holds expertise in producing fabrics where critical performance parameters include tear strength, abrasion resistance, tensile strength, comfort, waterproofing and air permeability, among others.

It primarily caters to four market segments: aerospace and defence fabrics, aerospace and defence solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics.