Kusumgar Limited - Initial public offering

Khaitan & Co advised Kusumgar Ltd and the Promoter Selling Shareholders, as Indian counsel, on the Initial Public Offering of equity shares, comprising an offer for sale by the Selling Shareholders aggregating up to INR 6,500 million.

The public issue received an overwhelming response from investors across categories and was subscribed 128.85 times, with bids received for 147.76 crores shares against 1.14 crore shares on offer, according to NSE data.

Quotation by team leader

“Khaitan & Co acted as transaction counsel in advising Kusumgar on its transition from a long-standing, family-owned technical textiles manufacturer to a listed advanced materials and defence solutions platform. Our scope encompassed end-to-end stewardship of the transaction, integrating IPO readiness, capital restructuring, institutional pre-IPO investments, remediation of legacy corporate records, and a ?650 crore offer for sale by three promoters into a unified and coordinated execution strategy.

The transaction required significant responsiveness at a critical juncture, as secondary transfers were completed subsequent to the filing of the red herring prospectus. This necessitated an expedited recalibration of shareholding patterns, acquisition cost disclosures, and lock-in requirements, which was efficiently addressed through a public addendum without impacting the transaction timeline or launch.

The IPO witnessed robust investor participation, with an overall subscription of approximately 128 times and a listing premium of up to 37%, underscoring strong market confidence in the Company’s differentiated positioning and growth prospects.”