Kusumgar IPO GMP Today: 25x Subscription for Defence Play Backed by BlackRock, Goldman on Day 3; Time To Bid?

Kusumgar IPO GMP Today: The Rs 650 crore initial public offering (IPO) of the engineered fabrics manufacturer, Kusumgar Limited, entered its third day of subscription with robust demand, especially from the net institutional investors (NII) and retail investors. Kusumgar IPO is subscribed more than 25x on day 3 so far. Kusumgar IPO grey market premium (GMP) today also surged after seeing minor decline over the last two days.

Backed by marquee investors like BlackRock Global Funds, India Fund, Goldman Sachs Funds, Goldman Sachs India Equity Portfolio, etc, Kusumgar IPO is receiving strong response from NIIs. Here are latest updates about Kusumgar IPO subscription day 3 and its IPO GMP Today.

Kusumgar IPO Subscription Day 3

The issue has been subscribed nearly 25.75 times, as per Chittorgarh.com data at 11:14 am on day 3 of subscription, ie Friday, July 10. The public issue was subscribed by 15.13 times in the retail category 2.87 times in QIB (ex-anchor category), and a whopping 81.78 times in the NII Category.

Kusumgar IPO GMP Today, July 10

Kusumgar IPO GMP today saw mild recovery on Friday, after declining for the last two sessions. Its latest IPO GMP stood at Rs 159, as per investorgain.com data at 10:32 am. It indicated listing of Kusumgar at around Rs 578 per share (which is the sum of upper price band and IPO GMP today). THe stock is expected to gain/ or loss by around 37.95% per share.

Kusumgar IPO Anchor Investors

Kusumgar IPO is a complete offer for sale (OFS) of 1.55 crore equity shares at a price band of Rs 398 to Rs 419 per share. Its anchor book includes names like BlackRock Global Funds, Goldman Sachs, Goldman Sachs India Equity Portfolio, Kotak Mahindra Life Insurance Company, etc.

Kusumgar IPO Price Band, Issue Size, Other Details

The IPO bidding will remain open till July 10 and the allotment is likely to be finalised on July 13. The IPO price band is fixed between Rs 398 per share and Rs 419 per share. The lot size for an application is 35 shares and the minimum amount of investment required by an individual investor (retail) is Rs 14,665.

Kusumgar IPO Subscription Day 3: Should You Bid?

Kusumgar Limited is specialised in technical capabilities and customer relationships. The company is likely to benefit from the slew of free trade agreements (FTAs) with other trading nations which is expected to boost export business. SBI Securities, in its report, recommended to "Subscribe for long-term".

"At upper price band of Rs 419, the issue is valued at a FY26 P/E of 44.8x. Though, this multiple is higher than its peers, it isin line when adjusted for higher growth across revenue and industry leading EBITDA and PAT margins. We recommend investors to SUBSCRIBE to the issue for long-term investment horizon," read the SBI Securities report.

Revenue Split For Kusumgar From Defence Sector

A major source of revenue for Kusumgar is from defence sector. The company earned a major chunk of its revenue from Aerospace and Defence Fabrics, and Aerospace and Defence Solutions between the financial year 2023-24, 2024-25, FY25-26.