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Kusumgar Ltd IPO
Status: Closed
Overview
IPO date
08 Jul 2026 to 10 Jul 2026
Face value
₹ 1 per share
Price
₹ 398 to ₹419 per share
Issue Size
15,521,350 shares
(aggregating up to ₹ 650 Cr)
(aggregating up to ₹ 650 Cr)
Allotment Date
13 Jul 2026
Listing at
NSE
Issue type
Book Building
Sector
Textiles
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T&C*
Strengths vs Risks of Kusumgar Ltd
Know the pros & cons
Strengths
- The Company operates in markets with high entry barriers.
- Its technical capabilities allow it to develop and supply unique solutions for its customers.
- The Company has a diversified presence across multiple end-use segments, each of which has independent growth drivers.
- The Company has long-standing relationships with key customers.
- Its track record has given it access to technology and markets through partnerships.
- The Company has experienced and visionary Promoters supported by a professional management team. Its culture promotes innovation and quality.
Risks
- The company derived 31.67%, 24.43% and 22.97% of its revenue from contracts with customers for Fiscal 2026 from the company Aerospace and Defence Fabrics, Industrial and Automotive Fabrics, and Aerospace and Defence Solutions market segments, respectively. If there is any decline in demand for aerospace and defence fabrics, industrial and automotive fabrics, and aerospace and defence solutions, it could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company's top customer and its top 10 customers contributed 11.13% and 59.52%, respectively, of the company revenue from contracts with customers for Fiscal 2026. Any decrease in sales to such customers or the loss of such customers could has an adverse effect on its business, results of operations, financial condition and cash flows.
- All six of the company manufacturing facilities are in the state of Gujarat. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat could has an adverse effect on its business, results of operations, financial condition and cash flows.
- The Company, Directors and Promoters are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may has an adverse effect on its business, results of operations, financial condition and cash flows.
- The company incurred negative cash flows from operating activities in Fiscal 2025 and may continue to incur negative cash flows in the future. Continued negative cash flows from operating activities could adversely affect its business, results of operations, and financial condition.
- In order to get better pricing by buying in larger volumes, the company generally buy the primary materials its need from a few suppliers. For Fiscal 2026, the company cost of materials consumed purchased from its top 10 suppliers represented 51.42% of the company cost of materials consumed. Its has not entered into long-term agreements with these suppliers and if any of the company top 10 suppliers ceased selling its the materials the company requires in the quantities its need, and the company were unable to find a supplier to replace it, it could has a material adverse effect on its business, financial condition, results of operations and cash flows.
- Certain observations has been included in the Statutory Auditor's report on the company audited standalone financial statements for the years ended March 31, 2026, March 31, 2025 and March 31, 2024 as required under the Companies (Auditor's Report) Order, 2020.
- Any shortfall in the supply of materials or significant increases in material prices could has an adverse effect on the company business, results of operations, financial condition and cash flows.
- There has been certain instances of delays in payment of statutory dues by the company in the past. Any delay in payment of statutory dues by its in future could result in the imposition of penalties, which could has an adverse effect on the company financial condition, results of operation and cash flows.
- If the company is unable to respond to changing customer preferences in a timely and effective manner, it could has an adverse effect on its business, results of operations and financial condition.
- Failures to keep the company technical knowledge confidential or to protect its intellectual property could erode the company competitive advantage and has a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company exports accounted for 39.99% of revenue from contracts with customers for Fiscal 2026. Any changes in government regulations or policies affecting international trade or any downturn in the macroeconomic environment or geopolitical risks in India, the United States or the European Union may has an adverse effect on its business, results of operations and financial condition.
- The company operates in a competitive business environment. Failures to compete effectively against its competitors would has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company is required to obtain and maintain a number of statutory and regulatory approvals for carrying out its business. A failures to obtain, keep and renew such licences, registrations, permits and approvals could has a material adverse effect on the company business, financial condition, results of operation and cash flows.
- The company operations is significantly dependent on its manufacturing facilities. Any breakdown or shutdown of any of the company manufacturing facilities could has a material adverse effect on its business, results of operations, financial condition and cash flows.
- The company operates a working capital intensive business. Any failures to secure funds to meet its working capital requirements could has a material adverse effect on the company business, results of operations, financial condition and cash flows.
- The audit trail functionality of the company accounting software for Fiscals 2025 and 2024 was not in compliance with Rule 11(g) of the Companies (Audit and Auditors) Rules.
- The company Promoters may be engaged in ventures that could lead to conflicts of interest with its Company. While the company has adequate measures in place to prevent such conflicts of interest, in the event its Promoters conduct any business in those ventures, it may adversely affect the company business, financial condition, results of operations and cash flows.
- The company is exposed to counterparty credit risk of its customers and any significant delay in receiving payments or non-receipt of payments could has a material adverse effect on the company financial condition, results of operations and cash flows.
- The company financing agreements contain covenants that limit its flexibility in operating the company business. Any future failures to meet the conditions under its financing arrangements or obtain any consents thereunder could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company Promoters has provided personal guarantees for loan facilities obtained by its Company, and any failures or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may adversely affect their ability to effectively service their obligations and thereby adversely affect its business and operations.
- The company has contingent liabilities that has not been provided for in its financial statements, which if they materialise could adversely affect the company financial condition, results of operations and cash flows.
- The Company does not meet the required minimum expenditure on CSR activities for Fiscals 2026, 2025 and 2024, as is required under the Companies Act, 2013 and there was a delay in transferring such unspent amounts to a special account within a period of 30 days from the end of the respective fiscal year as mandated under the Companies Act, 2013. The unspent amounts has been transferred to the unspent CSR account and are required to be used for the purposes of CSR activities within three Fiscals from the date of transfer. Any failures to does so may result in penalties and has an adverse effect on its reputation, financial condition and results of operations.
- The company has been unable to locate certain of its historical corporate records.
- The company generally does not have long-term agreements for the sale of its products. If the company customers choose not to source their requirements from its, it could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- Increases in interest rates would increase the interest payable on the company floating rate borrowings and would adversely affect its financial condition, results of operations and cash flows.
- The company ability to obtain financing on commercially acceptable terms depends on its credit ratings. A downgrade in the company credit ratings could increase the cost of future borrowings and could restrict its access to borrowings on commercially acceptable terms and thereby adversely affect the company business, financial condition, results of operations and cash flows.
- The success of the company business depends substantially on its Promoters, Key Managerial Personnel and Senior Management. The loss of such persons, particularly the company Promoters, could adversely affect its business, financial condition, results of operations and cash flows.
- The company has entered into, and will continue to enter into, related party transactions. Its cannot assure you that the company could not has achieved more favourable terms had such transactions not been entered into with related parties.
- Pricing pressure from the company customers could adversely affect its margins, which could in turn has a material adverse effect on the company results of operations, cash flows and financial condition.
- The success of the company business depends on its ability to effectively manage the company business and implement its strategies. The company may not be successful in implementing its growth strategies, which could has a material adverse effect on the company business, financial condition, results of operations and cash flows. There can also be no assurance that its growth strategies, if completed or implemented, will result in the anticipated growth in the company revenues or improvement in its results of operations. In pursuing the company growth strategies, its will requires significant capital investments, which could has a material adverse effect on the company financial condition, results of operations and cash flows.
- The company currently avail benefits under certain export promotion schemes, subject to its export of goods of a defined amount. Any failures by the company to meet the scheme requirements could adversely affect its financial condition, results of operations and cash flows.
- The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards could lead to the cancellation of orders, product recalls and the payment of damages, which could negatively affect its reputation, business, financial condition, results of operations and cash flows. Further, given some of its products find use in a range of high-risk situations (including involving armed forces), any defect in quality standards of the company products could have significantly adverse outcomes, including injury and/or the death of the end-user, and its could be liable for damages in relation thereto, which could has an adverse effect on its reputation, business, financial condition, results of operations and cash flows.
- The company and the Book Running Lead Managers has relied on declarations and affidavits furnished by some of its Directors and Promoters for details of their educational qualifications included in this Red Herring Prospectus.
- If the company is unable to maintain the existing level of capacity utilisation rate at its manufacturing facilities, the company margins and profitability could be adversely affected.
- The company import certain machinery which its operations are reliant on. Any significant increases in the prices of such machinery or restrictions on the company import of such machinery could has an adverse effect on its business, results of operations, financial condition and cash flows.
- The company could be subject to industrial unrest, which could adversely affect its business, financial condition, results of operations and cash flows.
- Material increases in employee benefits expense as a percentage of the company revenue from operations could has an adverse effect on its business, financial condition, results of operations and cash flows.
- If the company cannot secure skilled and unskilled contract labour at reasonable rates, it will adversely affect its business and results of operations. In addition, if independent contractors default on wages payments, the company could be required to fund the wages of the engaged workers, which could has an adverse effect on its cash flows until such amount is recovered from the contractor and on the company results of operations and financial condition in the event its is unable to recover such amount from the independent contractor.
- Failures or disruption of the company information technology ("IT") systems or breach of data security could adversely affect its business, financial condition, results of operations and cash flows.
- The company is subject to numerous health, safety and environmental laws and regulations in India, which govern, among others, air emissions and waste management. If its fail to comply with environmental laws, regulations and permits, the company could be subject to penalties, fines and/or restrictions on its manufacturing operations, any of which could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company operations involve activities and materials that are hazardous in nature. Serious mishaps could result in a suspension of operations, injury to its or their personnel and/or the imposition of civil or criminal liabilities, any of which could adversely affect its business, results of operations, cash flows and financial condition.
- The company outsource certain processes, such as weaving, knitting, finishing and fabrication, and any interruptions in its ability to obtain outsourced products on a timely and cost-effective basis, especially if alternative suppliers cannot be immediately obtained, could disrupt the company production and has an adverse effect on its business, financial condition, results of operations and cash flows. In addition, the company could be liable for breaches of environmental laws by third-party contractors.
- The company insurance coverage may not be adequate to protect its against all losses, which could has an adverse effect on the company business, financial condition, results of operations and cash flows.
- The company Promoters and the Promoter Group together hold 90.48% of the paid-up equity share capital of its Company as on date of this Red Herring Prospectus. The company Promoters will continue to exercise significant influence over its Company after the completion of the Offer, which could prevent a change in control of the Company and could make some transactions more difficult or impossible without the support of its Promoters.
- The company has only leasehold rights to the land on which its registered and corporate office and all the company manufacturing facilities are located. In the event its lose or are unable to renew such leasehold rights, the company business, financial condition, results of operations and cash flows could be adversely affected.
- If the company fails to maintain an effective system of internal controls, its may not be able to prepare reliable financial reports and effectively avoid frauds.
- The company might unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm its competitive position.
- A shortage or unavailability of electricity or water could affect the company manufacturing operations and has an adverse effect on its business, financial condition, results of operations and cash flows.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in the company financing agreements.
- The company may be subject to fraud, theft or such similar incidents, which may has an adverse effect on its financial condition, results of operations and cash flows.
- Some of the company Promoters and Directors and their relatives could has interest in its other than normal remuneration benefits or reimbursements of expenses incurred.
- Its foreign currency exchange risks arise primarily from the company's foreign currency receivables, which could materially and adversely affect the company's financial condition, results of operations and cash flows.
- The company has included certain non-GAAP financial measures and certain operational metrics related to its business, financial condition, results of operations and cash flows in this Red Herring Prospectus. These non-GAAP financial measures and operational metrics could vary from any standard methodology that is applicable across the manufacturing industry, and therefore may not be comparable with non-GAAP financial measures or operational metrics of similar nomenclature computed and presented by other companies.
- Statistical and industry data in this Red Herring Prospectus are derived from the 1Lattice Report, which was commissioned and paid for by its for the purpose of the Offer. Reliance on information from the 1Lattice Report for making an investment decision in the Offer is subject to inherent risks.
Kusumgar Ltd Peer Comparison
Understand the company’s industry standing
Kusumgar Ltd
Garware Technical Fibres Limited
Arvind Limited
Face Value
1
10
10
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
692
1528.79
9303.19
EPS-Basis
9.68
20.01
15.8
EPS-Diluted
9.31
20.01
15.79
NAV Per Share
49.56
136.44
154.47
P/E-Basic EPS
---
39.80
32.72
P/E-Diluted EPS
---
---
---
RONW(%)
25.82
15.29
10.91
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 08 Jul 2026 & closes on 10 Jul 2026.
Kusumgar Limited was originally incorporated as 'Kusumgar Finstocks Private Limited' as a Private Limited Company on June 15, 1990, issued by the Registrar of Companies, Maharashtra at Mumbai. The name of Company was changed to 'Kusumgar Corporates Private Limited' on account of takeover of proprietary concern of Kusumgar Corporates on November 21, 2008. Further, the name of Company was changed to 'Kusumgar Private Limited' on account of expansion of business on March 28, 2024. Thereafter, Company was converted into a Public Limited Company and the name was changed to 'Kusumgar Limited' and a fresh Certificate of Incorporation dated January 28, 2025 was issued by the Registrar of Companies, Central Processing Centre, Manesar.
Since 1970, Company has developed and manufactured over 1,000 unique engineered fabrics. The Company had established capabilities at the Vapi Plant for manufacturing of technical textiles, parachute fabrics, geo synthetic and textile performance fabrics in 2010. It established a Weaving facility at Kosamba in 2017, supplied recovery system parachutes with deployment bag to the Indian Government in 2021.
Presently, the Company manufacture engineered fabrics, being woven, coated and laminated synthetic fabrics. It offer engineered fabrics and solutions focusing on polyamides, polyester filaments and polyurethane chemistry to serve customers' high-performance requirements. These products are manufactured primarily for four diverse market segments: Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics; and Outdoor and Lifestyle Fabrics. These operations are vertically integrated, including preparatory, weaving, dyeing, printing, finishing, coating, lamination, and fabrication. The core expertise lies in working with polyamide and polyester filaments and polyurethane chemistry. Company operate six manufacturing facilities, all of which are in Gujarat, and one fabrication unit in Uttar Pradesh, India.
The Company partnered with a defence institute and a defence research & development organisation for a military Combat Free Fall (CFF) parachute system in FY25.
Company issued 15,521,698 Equity shares having the face value of Rs 1 each by raising the offer for sake of Rs 650 crore through its IPO on July 10, 2026.
Kusumgar Ltd IPO will close on 10 Jul 2026.
- The Company operates in markets with high entry barriers.
- Its technical capabilities allow it to develop and supply unique solutions for its customers.
- The Company has a diversified presence across multiple end-use segments, each of which has independent growth drivers.
- The Company has long-standing relationships with key customers.
- Its track record has given it access to technology and markets through partnerships.
- The Company has experienced and visionary Promoters supported by a professional management team. Its culture promotes innovation and quality.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Yogesh Kantilal Kusumgar | 51000 | 0.05 | 51000 | 0.05 |
| 2 | Siddharth Yogesh Kusumgar | 61884021 | 58.71 | 51854841 | 49.39 |
| 3 | Sapna Siddharth Kusumgar | 29561148 | 28.05 | 24785348 | 23.61 |
| 4 | Siddharth Yogesh Kusumgar Huf | 2769010 | 2.63 | 2052640 | 1.96 |
| 5 | Concord Weaving Preparatory Pv | 2550 | --- | 2550 | --- |
| 6 | Sia Siddharth Kusumgar | 2550 | --- | 2550 | --- |
| 7 | Sanay Siddharth Kusumgar | 2550 | --- | 2550 | --- |
| 8 | Kusumgar Holdings LLP | 2550 | --- | 2550 | --- |
- The company derived 31.67%, 24.43% and 22.97% of its revenue from contracts with customers for Fiscal 2026 from the company Aerospace and Defence Fabrics, Industrial and Automotive Fabrics, and Aerospace and Defence Solutions market segments, respectively. If there is any decline in demand for aerospace and defence fabrics, industrial and automotive fabrics, and aerospace and defence solutions, it could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company's top customer and its top 10 customers contributed 11.13% and 59.52%, respectively, of the company revenue from contracts with customers for Fiscal 2026. Any decrease in sales to such customers or the loss of such customers could has an adverse effect on its business, results of operations, financial condition and cash flows.
- All six of the company manufacturing facilities are in the state of Gujarat. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat could has an adverse effect on its business, results of operations, financial condition and cash flows.
- The Company, Directors and Promoters are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may has an adverse effect on its business, results of operations, financial condition and cash flows.
- The company incurred negative cash flows from operating activities in Fiscal 2025 and may continue to incur negative cash flows in the future. Continued negative cash flows from operating activities could adversely affect its business, results of operations, and financial condition.
- In order to get better pricing by buying in larger volumes, the company generally buy the primary materials its need from a few suppliers. For Fiscal 2026, the company cost of materials consumed purchased from its top 10 suppliers represented 51.42% of the company cost of materials consumed. Its has not entered into long-term agreements with these suppliers and if any of the company top 10 suppliers ceased selling its the materials the company requires in the quantities its need, and the company were unable to find a supplier to replace it, it could has a material adverse effect on its business, financial condition, results of operations and cash flows.
- Certain observations has been included in the Statutory Auditor's report on the company audited standalone financial statements for the years ended March 31, 2026, March 31, 2025 and March 31, 2024 as required under the Companies (Auditor's Report) Order, 2020.
- Any shortfall in the supply of materials or significant increases in material prices could has an adverse effect on the company business, results of operations, financial condition and cash flows.
- There has been certain instances of delays in payment of statutory dues by the company in the past. Any delay in payment of statutory dues by its in future could result in the imposition of penalties, which could has an adverse effect on the company financial condition, results of operation and cash flows.
- If the company is unable to respond to changing customer preferences in a timely and effective manner, it could has an adverse effect on its business, results of operations and financial condition.
- Failures to keep the company technical knowledge confidential or to protect its intellectual property could erode the company competitive advantage and has a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company exports accounted for 39.99% of revenue from contracts with customers for Fiscal 2026. Any changes in government regulations or policies affecting international trade or any downturn in the macroeconomic environment or geopolitical risks in India, the United States or the European Union may has an adverse effect on its business, results of operations and financial condition.
- The company operates in a competitive business environment. Failures to compete effectively against its competitors would has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company is required to obtain and maintain a number of statutory and regulatory approvals for carrying out its business. A failures to obtain, keep and renew such licences, registrations, permits and approvals could has a material adverse effect on the company business, financial condition, results of operation and cash flows.
- The company operations is significantly dependent on its manufacturing facilities. Any breakdown or shutdown of any of the company manufacturing facilities could has a material adverse effect on its business, results of operations, financial condition and cash flows.
- The company operates a working capital intensive business. Any failures to secure funds to meet its working capital requirements could has a material adverse effect on the company business, results of operations, financial condition and cash flows.
- The audit trail functionality of the company accounting software for Fiscals 2025 and 2024 was not in compliance with Rule 11(g) of the Companies (Audit and Auditors) Rules.
- The company Promoters may be engaged in ventures that could lead to conflicts of interest with its Company. While the company has adequate measures in place to prevent such conflicts of interest, in the event its Promoters conduct any business in those ventures, it may adversely affect the company business, financial condition, results of operations and cash flows.
- The company is exposed to counterparty credit risk of its customers and any significant delay in receiving payments or non-receipt of payments could has a material adverse effect on the company financial condition, results of operations and cash flows.
- The company financing agreements contain covenants that limit its flexibility in operating the company business. Any future failures to meet the conditions under its financing arrangements or obtain any consents thereunder could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company Promoters has provided personal guarantees for loan facilities obtained by its Company, and any failures or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may adversely affect their ability to effectively service their obligations and thereby adversely affect its business and operations.
- The company has contingent liabilities that has not been provided for in its financial statements, which if they materialise could adversely affect the company financial condition, results of operations and cash flows.
- The Company does not meet the required minimum expenditure on CSR activities for Fiscals 2026, 2025 and 2024, as is required under the Companies Act, 2013 and there was a delay in transferring such unspent amounts to a special account within a period of 30 days from the end of the respective fiscal year as mandated under the Companies Act, 2013. The unspent amounts has been transferred to the unspent CSR account and are required to be used for the purposes of CSR activities within three Fiscals from the date of transfer. Any failures to does so may result in penalties and has an adverse effect on its reputation, financial condition and results of operations.
- The company has been unable to locate certain of its historical corporate records.
- The company generally does not have long-term agreements for the sale of its products. If the company customers choose not to source their requirements from its, it could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- Increases in interest rates would increase the interest payable on the company floating rate borrowings and would adversely affect its financial condition, results of operations and cash flows.
- The company ability to obtain financing on commercially acceptable terms depends on its credit ratings. A downgrade in the company credit ratings could increase the cost of future borrowings and could restrict its access to borrowings on commercially acceptable terms and thereby adversely affect the company business, financial condition, results of operations and cash flows.
- The success of the company business depends substantially on its Promoters, Key Managerial Personnel and Senior Management. The loss of such persons, particularly the company Promoters, could adversely affect its business, financial condition, results of operations and cash flows.
- The company has entered into, and will continue to enter into, related party transactions. Its cannot assure you that the company could not has achieved more favourable terms had such transactions not been entered into with related parties.
- Pricing pressure from the company customers could adversely affect its margins, which could in turn has a material adverse effect on the company results of operations, cash flows and financial condition.
- The success of the company business depends on its ability to effectively manage the company business and implement its strategies. The company may not be successful in implementing its growth strategies, which could has a material adverse effect on the company business, financial condition, results of operations and cash flows. There can also be no assurance that its growth strategies, if completed or implemented, will result in the anticipated growth in the company revenues or improvement in its results of operations. In pursuing the company growth strategies, its will requires significant capital investments, which could has a material adverse effect on the company financial condition, results of operations and cash flows.
- The company currently avail benefits under certain export promotion schemes, subject to its export of goods of a defined amount. Any failures by the company to meet the scheme requirements could adversely affect its financial condition, results of operations and cash flows.
- The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards could lead to the cancellation of orders, product recalls and the payment of damages, which could negatively affect its reputation, business, financial condition, results of operations and cash flows. Further, given some of its products find use in a range of high-risk situations (including involving armed forces), any defect in quality standards of the company products could have significantly adverse outcomes, including injury and/or the death of the end-user, and its could be liable for damages in relation thereto, which could has an adverse effect on its reputation, business, financial condition, results of operations and cash flows.
- The company and the Book Running Lead Managers has relied on declarations and affidavits furnished by some of its Directors and Promoters for details of their educational qualifications included in this Red Herring Prospectus.
- If the company is unable to maintain the existing level of capacity utilisation rate at its manufacturing facilities, the company margins and profitability could be adversely affected.
- The company import certain machinery which its operations are reliant on. Any significant increases in the prices of such machinery or restrictions on the company import of such machinery could has an adverse effect on its business, results of operations, financial condition and cash flows.
- The company could be subject to industrial unrest, which could adversely affect its business, financial condition, results of operations and cash flows.
- Material increases in employee benefits expense as a percentage of the company revenue from operations could has an adverse effect on its business, financial condition, results of operations and cash flows.
- If the company cannot secure skilled and unskilled contract labour at reasonable rates, it will adversely affect its business and results of operations. In addition, if independent contractors default on wages payments, the company could be required to fund the wages of the engaged workers, which could has an adverse effect on its cash flows until such amount is recovered from the contractor and on the company results of operations and financial condition in the event its is unable to recover such amount from the independent contractor.
- Failures or disruption of the company information technology ("IT") systems or breach of data security could adversely affect its business, financial condition, results of operations and cash flows.
- The company is subject to numerous health, safety and environmental laws and regulations in India, which govern, among others, air emissions and waste management. If its fail to comply with environmental laws, regulations and permits, the company could be subject to penalties, fines and/or restrictions on its manufacturing operations, any of which could has a material adverse effect on the company business, financial condition, results of operations and cash flows.
- The company operations involve activities and materials that are hazardous in nature. Serious mishaps could result in a suspension of operations, injury to its or their personnel and/or the imposition of civil or criminal liabilities, any of which could adversely affect its business, results of operations, cash flows and financial condition.
- The company outsource certain processes, such as weaving, knitting, finishing and fabrication, and any interruptions in its ability to obtain outsourced products on a timely and cost-effective basis, especially if alternative suppliers cannot be immediately obtained, could disrupt the company production and has an adverse effect on its business, financial condition, results of operations and cash flows. In addition, the company could be liable for breaches of environmental laws by third-party contractors.
- The company insurance coverage may not be adequate to protect its against all losses, which could has an adverse effect on the company business, financial condition, results of operations and cash flows.
- The company Promoters and the Promoter Group together hold 90.48% of the paid-up equity share capital of its Company as on date of this Red Herring Prospectus. The company Promoters will continue to exercise significant influence over its Company after the completion of the Offer, which could prevent a change in control of the Company and could make some transactions more difficult or impossible without the support of its Promoters.
- The company has only leasehold rights to the land on which its registered and corporate office and all the company manufacturing facilities are located. In the event its lose or are unable to renew such leasehold rights, the company business, financial condition, results of operations and cash flows could be adversely affected.
- If the company fails to maintain an effective system of internal controls, its may not be able to prepare reliable financial reports and effectively avoid frauds.
- The company might unintentionally infringe upon the intellectual property rights of others, any misappropriation of which could harm its competitive position.
- A shortage or unavailability of electricity or water could affect the company manufacturing operations and has an adverse effect on its business, financial condition, results of operations and cash flows.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in the company financing agreements.
- The company may be subject to fraud, theft or such similar incidents, which may has an adverse effect on its financial condition, results of operations and cash flows.
- Some of the company Promoters and Directors and their relatives could has interest in its other than normal remuneration benefits or reimbursements of expenses incurred.
- Its foreign currency exchange risks arise primarily from the company's foreign currency receivables, which could materially and adversely affect the company's financial condition, results of operations and cash flows.
- The company has included certain non-GAAP financial measures and certain operational metrics related to its business, financial condition, results of operations and cash flows in this Red Herring Prospectus. These non-GAAP financial measures and operational metrics could vary from any standard methodology that is applicable across the manufacturing industry, and therefore may not be comparable with non-GAAP financial measures or operational metrics of similar nomenclature computed and presented by other companies.
- Statistical and industry data in this Red Herring Prospectus are derived from the 1Lattice Report, which was commissioned and paid for by its for the purpose of the Offer. Reliance on information from the 1Lattice Report for making an investment decision in the Offer is subject to inherent risks.
The Issue type of Kusumgar Ltd is Book Building.
The minimum application for shares of Kusumgar Ltd is 35.
The total shares issue of Kusumgar Ltd is 15521350.
Initial public offering of 1,55,21,350 equity shares of face value of Rs. 1 each ("Equity Shares") of Kusumgar Limited (Formerly Known As Kusumgar Private Limited) ("Company" or "Issuer") for cash at a price of Rs. 419 per equity share (Including A Premium of Rs. 418 Per Equity Share) ("Offer Price") aggregating up to Rs. 650 Crore ("Offer") comprising an offer for sale of 1,00,29,180 equity shares ("Offered Shares") aggregating to Rs. 420 Crore by Siddharth Yogesh Kusumgar, 47,75,800 equity shares aggregating to Rs. 200 Crore by Sapna Siddharth Kusumgar and 7,16,370 equity shares aggregating to Rs. 30 Crore by Siddharth Yogesh Kusumgar Huf (the "Promoter Selling Shareholders", and such offer for sale by the promoter selling shareholders, the "Offer For Sale").
This offer includes a reservation of up to 92,105 equity shares aggregating up to Rs. 3.5 Crore (Constituting 0.08% Of The Post-Offer Paid-Up Equity Share Capital Of The Company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, offered a discount of Rs. 39 Per Equity Share to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute 14.78% and 14.70%, respectively, of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 419/- per equity share of face value of Rs. 1 each.
The floor price is 419 times of the face value.
Bids can made for a minimum of 35 equity shares and in multiples of 35 equity shares thereafter.
A discount of Rs. 39 per equity share is being offered to eligible employees bidding in the employee reservation portion.