Engineered fabric manufacturer Kusumgar Ltd. listed at premium in its stock market debut on Wednesday. The stock opened at Rs 569 on the National Stock Exchange (NSE) Rs 578.45 on the Bombay Stock Exchange (BSE), compared to the issue price of Rs 419. The IPO listed at 36% premium on the NSE and 37% on the BSE.
The initial public offering of engineered fabric manufacturer Kusumgar Ltd received a whopping 128.85 times subscription on the closing day of bidding on Friday, driven by strong response from Qualified Institutional Buyers (QIBs).
The Rs 650-crore IPO attracted bids for 1,47,76,17,435 shares against 1,14,68,094 shares on offer, according to NSE data.
The portion reserved for QIBs was subscribed a massive 284.10 times. The category for non-institutional investors was booked 165.46 times and the retail investors subscribed their quota 26.47 times.
The IPO price band was fixed at Rs 398 to Rs 419 per share.
Kusumgar IPO was fully subscribed on the first day of bidding on Thursday. The IPO is entirely an offer-for-sale (OFS). Since the issue is an OFS, the Mumbai-based firm will not receive any proceeds and the funds will go entirely to the selling shareholders. The firm has garnered Rs 193.9 crore from anchor investors.
About Kusumgar Ltd.
Founded in 1990, Kusumgar manufactures woven, coated and laminated synthetic fabrics, known as engineered fabrics. The company primarily produces aerospace and defence fabrics, industrial and automotive fabrics, and outdoor and lifestyle fabrics.
Axis Capital, IIFL Capital Services, and Motilal Oswal Investment Advisors are the book-running lead managers to the IPO.
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(with inputs from PTI)
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