KSH International IPO Opens at 4% Discount: What New Investors Should Know

KSH International's stock started trading on December 23 at a price about 4% lower than its IPO price, signaling a cautious start for the new listing.

IPO debut and pricing

The shares opened at ₹370 on both BSE and NSE, compared with the issue price of ₹384. This drop matches the quiet expectations from the grey market, which saw little excitement from investors.

Subscription and offer‑for‑sale cut

The IPO attracted an overall subscription of roughly 83%. After the issue closed, the company reduced the offer‑for‑sale (OFS) portion from ₹290 crore to ₹224.4 crore, while keeping the fresh‑issue amount of ₹420 crore unchanged. The total size of the IPO is now about ₹644 crore.

• Retail investors subscribed for less than one times the offer.
• Qualified institutional buyers (QIBs) were the main source of demand.
• The lower OFS aims to make the share allocation smoother and help the stock settle more steadily.

About KSH International

Founded in 1979, KSH International is India's third‑largest maker and the biggest exporter of magnet winding wires. Its products are used in power, renewable energy, railways, automotive and other industrial sectors. The company supplies big names such as PGCIL, NTPC and NPCIL, and exports to 24 countries, including the United States, Germany, Japan and the UAE.

It runs three factories in Maharashtra with a combined capacity of about 29,000 metric tonnes and is building a fourth plant in Supa, expected to start operations in FY26.

Financial snapshot

Revenue grew 39% from FY24 to FY25, reaching ₹1,938 crore. Net profit after tax rose 82% to ₹67 crore, giving a profit margin of 3.5% and an EBITDA margin of 6.4%.

The firm carries debt of over ₹360 crore, with a debt‑to‑equity ratio of 1.17, reflecting the capital‑intensive nature of its business.

Use of IPO proceeds

• Pay down existing debt to improve the balance sheet.
• Buy new machinery for two existing plants.
• Set up a rooftop solar power project at the upcoming Supa facility.

What this means for investors

The discounted opening price and the trimmed OFS suggest that investors are being cautious about large‑scale manufacturing IPOs at current valuations. The stock’s performance will likely depend on the company’s ability to grow earnings and manage its debt, rather than on short‑term hype.

Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.