Kusumgar shares made a strong debut on the stock exchanges and extended gains on Wednesday after the engineered fabric manufacturer’s initial public offering attracted robust investor demand across categories.

On the BSE, the stock debuted at ₹574, a premium of 36.99 per cent over the issue price of ₹419 per share. On the NSE, the stock listed at ₹569, up 35.79 per cent from the offer price.

The stock settled with nearly 44 per cent listing gains on bourses. It ended at ₹602.80 on the NSE and at ₹604.45 on the BSE.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said Kusumgar’s strong market debut was supported by robust investor demand and positive sentiment towards the defence sector.

Nyati said the company operates in the niche engineered fabrics segment with strong entry barriers and long-term opportunities in aerospace and defence. However, she noted that the company’s financial performance has weakened over the last three years, with declines in revenue, earnings per share and return on net worth.

She added that FY25 earnings were largely driven by a one-time CFF parachute order, while the IPO was entirely an offer-for-sale, resulting in no fresh capital infusion into the company for future expansion.

Swastika Investmart maintained a hold view on the stock with a stop-loss at ₹520.

According to Nyati, IPO allottees can consider booking partial profits following the strong listing while retaining the remaining shares with a stop-loss, whereas fresh investors should avoid entering at current levels and wait for consolidation and better earnings visibility.

The ₹650-crore initial public offering of Kusumgar Ltd received a strong response from investors and was subscribed 128.85 times overall. It attracted bids for 1,47,76,17,435 shares against 1,14,68,094 shares on offer, according to NSE data.

The portion reserved for qualified institutional buyers was subscribed 284.10 times. The category for non-institutional investors was booked 165.46 times, while retail investors subscribed their quota 26.47 times.

The price band for the issue was fixed at ₹398 to ₹419 per share.

As the IPO was an offer-for-sale, the Mumbai-based company will not receive any proceeds from the issue and the funds will go entirely to the selling shareholders.

The company raised ₹193.9 crore from anchor investors ahead of the issue opening.

Axis Capital, IIFL Capital Services and Motilal Oswal Investment Advisors were the book-running lead managers to the issue.

Published on July 15, 2026