⚠️ Neutral
Listed
Garments & Apparels
Kusumgar Limited IPO
₹650 Cr · Offer for Sale (OFS) · Garments & Apparels
Price Band
₹398 – ₹419
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹650 Cr
Offer for Sale (OFS)
Market Cap
₹4399.14 Cr
At upper band
P/E Ratio
44.8x
P/S: 6.4x
Listing Date
15 Jul 2026
BSE & NSE
IPO Timeline
✓
Opens
08 Jul 2026
✓
Closes
10 Jul 2026
✓
Allotment
13 Jul 2026
✓
Refund
14 Jul 2026
✓
Listing
15 Jul 2026
IPO India Hub: Neutral
Conviction
5/10
The company trades at 1.95× sector midpoint with fair operational metrics (ROCE 24.76%, D/E 0.44×), but PAT growth has stalled (7.9% CAGR vs 22.5% revenue CAGR), signaling margin compression. The 100% OFS structure and recent revenue decline (FY-1 ₹790.2 Cr → FY0 ₹711.8 Cr) warrant caution despite strong subscription.
Listing Performance
Issue Price
₹419
Allotment price
Listing Price
₹574
+36.99% on listing day
Current Price (CMP)
₹567.35
+35.4% vs issue
Listed On
15 Jul 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong balance sheet and returns
Debt-to-equity of 0.44× is conservative for the sector, and ROCE of 24.76% demonstrates efficient capital deployment. The company has minimal financial leverage, reducing refinancing and solvency risk.
✓ Strength
Healthy EBITDA margin and subscription
EBITDA margin of 27.15% is solid for garments and apparels, indicating operational efficiency. The IPO was oversubscribed 135.69×, reflecting strong retail and institutional demand.
⚠ Risk
Profit growth significantly lags revenue
PAT CAGR of 7.9% over two years is well below the 22.5% revenue CAGR, indicating margin compression and operational headwinds. Net profit margin of 13.8% is below the 15% threshold that would justify premium valuation.
⚠ Risk
Recent revenue contraction in latest year
Revenue declined from ₹790.2 Cr (FY-1) to ₹711.8 Cr (FY0), a 9.9% year-on-year drop. This reversal after strong prior growth raises questions about market demand, competitive pressure, or operational challenges.
₹ Valuation
Valuation at upper end of sector range
P/E of 44.8× translates to 1.95× the niche sector midpoint of 23×, placing it in the neutral-to-stretched zone. P/S of 6.4× is elevated for a garments company with slowing profit growth and recent revenue decline.
👁 Watch
Monitor margin trajectory post-listing
Track quarterly EBITDA and net profit margins closely. Any further compression or failure to return to FY-1 profit levels would validate concerns about structural headwinds in the business.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Kusumgar Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹692.00 Cr
Net Profit
₹98.20 Cr
Industry
Garments & Apparels
Issue Type
Offer for Sale (OFS)
Promoters
YOGESH KANTILAL KUSUMGAR, SIDDHARTH YOGESH KUSUMGAR, SAPNA SIDDHARTH KUSUMGAR AND SIDDHARTH YOGESH KUSUMGAR HUF
Lead Managers
Axis Capital, IIFL Capital & Motilal Oswal Investment Advisors
Quick Actions
Frequently Asked Questions
Neutral. The company trades at 1.95× sector midpoint with fair operational metrics (ROCE 24.76%, D/E 0.44×), but PAT growth has stalled (7.9% CAGR vs 22.5% revenue CAGR), signaling margin compression. The 100% OFS structure and recent revenue decline (FY-1 ₹790.2 Cr → FY0 ₹711.8 Cr) warrant caution despite strong subscription.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹398 – ₹419.
The IPO opens on 08 Jul 2026. It closes on 10 Jul 2026. Allotment is expected on 13 Jul 2026. Refunds initiate on 14 Jul 2026. Listing on BSE and NSE is on 15 Jul 2026.
The lead managers for the IPO are Axis Capital, IIFL Capital & Motilal Oswal Investment Advisors. Check the SEBI filing for the registrar details.
The IPO listed on 15 Jul 2026 at ₹574 against an issue price of ₹419 (+36.99% on listing day). The current market price (CMP) is approximately ₹567.35 (+35.4% vs issue).
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 10 Jul 2026. The company trades at 1.95× sector midpoint with fair operational metrics (ROCE 24.76%, D/E 0.44×), but PAT growth has stalled (7.9% CAGR vs 22.5% revenue CAGR), signaling margin compression. The 100% OFS structure and recent revenue decline (FY-1 ₹790.2 Cr → FY0 ₹711.8 Cr) warrant caution despite strong subscription.
Our analysis is <strong>Neutral</strong>. Consider applying selectively before the issue closes on 10 Jul 2026. The IPO is priced at a P/E of 44.8x. Market cap at issue price is ₹4399.14 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 10 Jul 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Kusumgar Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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