Kusumgar has fantastic listing

A fantastic new listing today – Kusumgar, as against the IPO price of Rs.419, it got listed on the BSE at Rs.574, going as high as Rs.621 and is now trading at Rs.614 levels.

The response to the IPO was very good as reflected in the listing – it was overall subscribed 128.85x with giant portion coming from QIBs at 284.1x, HNIs at 165.46x and Retail at 26.47x.

Kusumgar is a 56 years old, Mumbai-based manufacturer of synthetic or engineered fabrics such as polyamides, polyester filaments and polyurethane chemistry, used in aerospace, defence, automotive and industrial and lifestyle purposes, with each segment being roughly a quarter of company’s Rs. 700 cr topline.

In our IPO Analysis, we had concluded - Kusumgar’s strong fundamentals comprising niche product, strong margins and tiny equity make the IPO an ‘apply’.