Kusumgar shares list at 36% premium over IPO issue price on NSE; here's how much investors made per lot

Shares of engineered fabric manufacturer Kusumgar made a strong debut on the stock exchanges on Wednesday, July 15.

The stock started trading at ₹569 per share, reflecting a premium of 35.80% over the IPO issue price of ₹419 apiece.

On the BSE, it listed at ₹574 per unit, up 36.99% from the issue price.

Kusumgar share price: Here's how much investors made per lot

A lot consisted of 35 shares. Investors who received Kusumgar IPO allotment made ₹19,915 per lot.

The initial share sale was subscribed a whopping 128.85 times, as it got bids for 1,47,76,17,435 equity shares compared to 1,14,68,094 shares on offer, according to the NSE data.

Qualified institutional buyers led the bidding by subscribing their portion 284.10 times. The quota for non-institutional investors was booked 165.46 times, while the retail individual investors' category was subscribed 26.47 times.

The initial public offering was only an offer-for-sale (OFS) of ₹650 crore by promoters Siddharth Yogesh Kusumgar HUF, Siddharth Yogesh Kusumgar and Sapna Siddharth Kusumgar.

Since the IPO was solely an OFS, the Mumbai-based firm will not get any proceeds from the issue, and the funds will go to the 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," according to the red herring prospectus.

Before the IPO, the company had raised ₹193.95 crore from anchor investors, including BlackRock Global Funds, Goldman Sachs, Nippon India Mutual Fund (MF), SBI MF, WhiteOak Capital MF, ICICI Prudential MF, Mirae Asset MF, Motilal Oswal MF, Bandhan MF, Tata MF, Axis MF, Axis Max Life Insurance and Kotak Mahindra Life Insurance.

Kusumgar, founded in 1990, makes coated, woven and laminated synthetic fabrics, known as engineered fabrics. It primarily produces defence and aerospace fabrics, industrial and automotive fabrics, and outdoor and lifestyle fabrics.