The KSH International IPO, aiming to raise Rs 710 crore, has reached its final day of bidding with a relatively muted response from investors. As of Day 2, the IPO was subscribed to only 26%, indicating limited investor participation.
About KSH International IPO
KSH International, a leading manufacturer of magnet winding wires, aims to raise Rs 710 crore through its IPO, which includes a fresh equity offering of Rs 420 crore and a Rs 290-crore offer for sale (OFS) by the promoters.
IPO Subscription Status
The IPO has seen a relatively modest response, with overall subscription reaching just 26% of the total issue. Retail Individual Investors (RIIs) showed better interest, subscribing to 46% of their allotted shares. However, demand from Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) remained weak.
IPO Key Details
The KSH International IPO is valued at Rs 710 crore and includes a fresh issue of Rs 420 crore along with a Rs 290-crore offer for sale (OFS). The price band for the IPO has been set at Rs 365–Rs 384 per share. The company’s shares are expected to be listed on the BSE and NSE on December 23, 2025.
Company Overview
KSH International is the third-largest manufacturer of magnet winding wires in India and the largest exporter in the segment. The company manufactures a broad range of standard and specialised magnet winding wires used in transformers, generators, motors, and other electrical equipment.
Financial Overview
KSH International has posted a strong financial performance over the past three years, with revenue from operations increasing from Rs 1,049.46 crore in FY23 to Rs 1,928.29 crore in FY25. The company intends to use the IPO proceeds mainly for debt reduction and capacity expansion.
Should You Subscribe?
Canara Bank Securities has recommended subscribing to the IPO with a long-term investment perspective, citing KSH’s strong competitive position and improving profitability. However, analysts have highlighted certain risks, including the company’s reliance on the power sector and high working capital requirements.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider your individual financial goals and risk tolerance before making any investment decisions.
Risks and Considerations
- Heavy reliance on the power sector
- Customer and supplier concentration
- High working capital requirements
- Fluctuations in raw material prices
- Elevated debt levels