KSH International
IPO Size: Rs. 710 cr
- Fresh Issue of Rs. 420 cr for (i) capex Rs. 95 cr (ii) Rs. 226 cr debt repayment of Rs. 373 cr net debt
- Offer for Sale (OFS) of Rs. 290 cr by promoter (98% to shrink to 71%)
Price band: Rs. 365-384 per share
M cap: Rs. 2,602 cr, implying 27% dilution
IPO Date: Tue 16th Dec to Thu 18th Dec 2025, Listing Tue 23rd Dec 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s 3rd Largest Magnet Winding Wire Maker
KSH International, is a 45-year old, Pune based B2B manufacturer of magnet winding wires (both standard and specialized) used in capital good components. It has an installed capacity of 29,045 MTPA across 3 plants in Pune and Raigad, in Maharashtra, ranking 3rd after Precision Wires and Ram Ratna, and ahead of newly listed Vidya Wires. KSH is India’s largest exporter of magnet winding wires, with exports to US, Middle East, Europe accounting for 30% of its Rs. 2,000 cr topline.
Doubling Capacity in the next 2 years
With existing capacity already 84% utilised, in Sep 2025, a 4th plant with 12,000 MTPA capacity commenced operations at Ahilyanagar (formerly Ahmednagar), increasing installed capacity by 40%. Debt taken to fund expansion (represented by Rs. 143 cr capital work in progress as of 30.6.25) is being repaid through IPO proceeds. Essentially, the 4th plant is entirely funded via IPO.
In addition, 18,000 MTPA brownfield expansion worth Rs. 78 cr is planned from fresh issue proceeds. Thus, over the next 2 years, capacity will jump to 59,045 MTPA. Company has 1 MW rooftop solar power at Pune and plans 3.2 MW solar plant at Ahilyanagar, with Rs. 9 cr capex, also to be funded via IPO.
Margins Slim, but higher than Peers
Since FY22, production volume has risen at 14% CAGR, while revenue has grown at 30% CAGR. FY25 topline grew 39% YoY to Rs. 1,928 cr, on 9% volume growth. While business is low margin, with 7-8% EBITDA and 4% net, it is still higher than peers Precision and Ram Ratna’s 2% net margin and even Vidya Wires’ 3% net margin.
Q1FY26 revenue stood at Rs. 559 cr, with an EBITDA of Rs. 44 cr and PAT of Rs. 27 cr, leading to an EPS of Rs. 4 (FY25 EPS at Rs. 12), on Rs. 28 cr equity (face value Rs. 5 each). As of 30.6.25, net worth stood at Rs. 321 cr with Rs. 373 cr net debt, of which, Rs. 226 cr is to be repaid from IPO proceeds, shrinking net debt to equity to 0:2, post IPO.
Fully Priced
M cap of Rs. 2,600 cr, implies a PE multiple of 18x, on FY27E EPS of Rs. 21, which is inline for 4% net margin and 17% expected RoE going forward.
While KSH’s PE multiple is at 20% lower than Precision Wires and Ram Ratna’s ~25x, which can be partly explained, by double topline of peers, coupled with an aggressive capacity expansion plans, Vidya Wires, which listed just last week, with capacity doubling next quarter itself at 20%+ RoE, had flat listing, despite FY27E PE of 10x. KSH’s PAT is at 2x Vidya Wires’, but the asking m cap is at 2.5x and enterprise value at 2.3x. Thus, KSH International’s capacity expansion has been factored into the IPO pricing.
