The Kusumgar IPO made a solid market debut today, listing with a 35.80% premium over the issue price. According to reports from Goodreturns, the stock started trading at ₹569 per share on NSE and ₹574 on BSE, representing significant gains from the issue price of ₹419. The company's market capitalization stood at around ₹6,337.80 crore at the time of listing. As of 11AM, Kusumgar shares were trading at ₹613.15 per share on NSE, up by 6.82%, and ₹615 on BSE, up by 8.08%, maintaining a 46.07% premium from the issue price.
The bumper listing created substantial profits for IPO investors. As reported by Goodreturns, one IPO lot consisting of 35 shares was worth ₹14,665 at the issue price. At the NSE listing price of ₹569, the value of one lot rose to ₹19,915, generating an immediate profit of ₹5,250 per lot, representing a 35.8% return on investment.
The Kusumgar IPO received exceptional investor response during its subscription period. According to Goodreturns, the Mumbai-headquartered fabric manufacturer's IPO was open for public subscription from July 8-10 and achieved an overall subscription of 95.23 times. The retail segment was subscribed 27.95 times, while the QIB & NII segments saw subscription rates of 299.09 times and 174.19 times respectively, indicating strong institutional and high-net-worth investor interest.
Market experts have provided mixed recommendations for Kusumgar following its strong listing performance. As reported by Goodreturns, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted that while the company operates in a niche engineered fabrics business with strong entry barriers and opportunities in aerospace and defence, its financial performance has weakened over the last three years with declines in revenue, EPS and RoNW. She emphasized that FY25 earnings were largely driven by a one-time CFF parachute order, and the IPO was a 100% Offer for Sale (OFS), meaning the company did not receive fresh capital for future expansion.
