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Kusumgar Rs 650 Crore IPO Opens; Grey Market Signals 40% Gain
Kusumgar's Rs 650 crore IPO opens with a grey market premium near 40%. The textiles firm's offering tests demand in a selective IPO market and could set the tone for upcoming issues like NSE and Akasa.
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Kusumgar's initial public offering opened for subscription Monday with the stock trading at a roughly 40% premium in the unlisted market, dealers said.
The company is raising Rs 650 crore through a fresh issue of equity shares. The price band is set at Rs 250–260 per share. In the grey market, the stock was changing hands at about Rs 360, implying a listing gain of 38-40%, several dealers told ETMarkets.
A premium of that size signals strong demand for the issue, particularly given the mixed reception smaller IPOs have seen in recent months. Several recent offerings saw their grey market premiums shrink to single-digit gains by the final day of subscription. Kusumgar's premium suggests institutional and high-net-worth investors are pricing in the company's growth trajectory and sector tailwinds.
Kusumgar operates in the textiles and garments space. The sector has benefited from rising domestic consumption and government manufacturing incentives, including the Production-Linked Incentive scheme. The company's revenue and profit growth over the past three years has outpaced many peers, according to the draft red herring prospectus.