Engineered fabrics maker Kusumgar is launching its ₹650 crore initial public offering on July 8. The issue is an offer for sale by promoters, with shares priced between ₹398 and ₹419. Investors should note that the company will not receive any of the proceeds from this share sale.
What Happened
Kusumgar, a manufacturer specializing in engineered fabrics, has finalized the details for its upcoming initial public offering (IPO). The company will open for public subscription on Wednesday, July 8, 2026, and close on Friday, July 10, 2026. The issue size is set at ₹650 crore, with a price band established between ₹398 and ₹419 per equity share. Prospective investors can place bids for a minimum of one lot, which consists of 35 shares, requiring a minimum investment of ₹14,665 at the upper price band. Anchor investors will have the opportunity to bid on July 7, 2026.
The Structure of the Offer
This IPO is structured entirely as an offer for sale (OFS). In an OFS, existing shareholders—in this case, the promoters—sell their stake to the public. Because this is a secondary sale of shares, none of the ₹650 crore raised will go to the company for business expansion, capital spending, or debt reduction. The funds will go directly to the selling shareholders. Specifically, promoter Siddharth Yogesh Kusumgar is selling shares worth ₹420 crore, Joint MD Sapna Siddharth Kusumgar is divesting ₹200 crore, and the Siddharth Yogesh Kusumgar HUF is offloading ₹30 crore worth of equity.
Understanding Grey Market Trends
Recent unofficial reports indicate that the company’s shares are trading at a premium in the grey market. While this is often cited as a sign of strong demand, investors should treat such data with caution. The grey market is an unofficial, unregulated platform, and premium prices do not guarantee that the stock will list at a profit or reflect the long-term fundamental value of the business. Such premiums can change rapidly based on market sentiment and should not be the sole basis for an investment decision.
What Investors Should Track
Since this is an offer for sale, the primary focus for shareholders should be on the company’s underlying business performance, historical profit margins, and its competitive standing in the engineered fabrics sector. The company has included a discount of ₹39 per share for eligible employees, which may be a point of interest for internal stakeholders. Following the closure of the subscription period on July 10, the allotment process is expected to be finalized by July 13. The stock is scheduled to make its debut on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on July 15, 2026. Investors should closely review the final prospectus for details regarding the company’s order book, raw material cost exposure, and client concentration risks before deciding to participate.