Kusumgar IPO Lists at 36% Premium: Shares Jump 46% Above Issue Price; Should You Buy, Sell or Hold

Kusumgar stock started trading at Rs. 569 per share on NSE, a 35.80% premium over the Rs. 419 issue price, while on BSE it listed at Rs. 574, up 36.99%.Kusumgar's market capitalization stood at around Rs. 6,337.80 crore at the time of listing.

As of 11AM, Kusumgar IPO was trading at Rs.613.15 per share, up by 6.82%. The stock is currently 46.07% from the issue prices

Similarly, on the NSE, the Kusumgar shares were trading at Rs. 615 per share up by 8.08% so far today

How Much Did Investors Made Post-Listing?

Since the IPO made a bumper listing, the Investors who received allotment also made huge profits,

One IPO lot consists of 35 shares which is worth Rs. Rs. 14,665. So at the NSE listing price of Rs. 569, the value of one lot rose to Rs. 19,915, with an immediate profit of Rs. 5,250 per lot, or 35.8%.

Kusumgar IPO Details, GMP & Subscription

The Mumbai headquartered Fabric manufacturer went open for public subscription from Jul 8 and ended on Jul 10th. In the three day subscription time the Kusumagar IPO received an overall subscription of 95.23 times. The retail position was subscribed 27.95 times while the QIB & NII segment was subscribed 299.09 times & 174.19 times respectively.

Expert Analysis on Kusumage IPO; Should You BUY, Sell or Hold?

"While the company operates in a niche engineered fabrics business with strong entry barriers and long-term opportunities in aerospace and defence, investors should also note that its financial performance has weakened over the last three years, with declines in revenue, EPS and RoNW. Moreover, 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." said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

"Our view is to HOLD the stock with a strict stop-loss at Rs. 520. IPO allottees can consider booking partial profits after the strong listing and hold the remaining shares with this stop-loss, while fresh investors should avoid chasing the stock at current levels and wait for better entry opportunities after consolidation and improved earnings visibility." she further added.