Kusumgar IPO 2026: Day 1 3.6x; GMP hints 38% listing

Day 1 demand: IPO booked within hours

Kusumgar Limited’s initial public offering (IPO) opened on Wednesday, July 8, 2026 and saw strong demand on the first day. The ₹650 crore issue was reported to be fully subscribed within hours of opening. By late afternoon, multiple market trackers reported the issue was subscribed in the range of about 3.45x to 3.67x. Non-institutional investors (NIIs) led the bidding, while qualified institutional buyer (QIB) participation was comparatively lower on day one. The subscription window is scheduled to remain open until July 10.

IPO structure and what investors are buying

The Kusumgar IPO is a ₹650 crore offer for sale (OFS), as stated in the available reports. That means proceeds go to selling shareholders, not directly to the company for fresh capital. The promoters are divesting up to 15.5 million equity shares under the OFS structure. Kusumgar is described as India’s leading engineered synthetic fabric manufacturer in the provided material. The shares are expected to be listed on BSE and NSE.

Price band, lot size, and minimum investment

The IPO price band is fixed at ₹398 to ₹419 per share. Investors can bid for a minimum of 35 equity shares and in multiples of 35 thereafter. Based on the cut-off price cited in the material, a retail investor needs ₹14,665 to apply for one lot (35 shares). To apply for the maximum of 13 lots (455 shares), the investment requirement mentioned is ₹1,90,645. The face value of the share is ₹1.

Subscription snapshot: NIIs in the lead

Day one subscription data in the provided text shows broad strength in retail and NII participation. One set of figures (timestamped to 17:00 IST on July 8, 2026) showed overall subscription at 3.45x, with NIIs subscribing 7.35x and retail investors subscribing 3.52x. Another set of data referenced around 5 pm showed overall subscription around 3.66x, with NII at 7.75x, retail at 3.73x, and QIB at about 0.5x. A separate line also cited overall subscription around 3.67x.

Bids received vs shares on offer

Exchange-data based reporting in the provided text noted bids for about 3.95 crore shares against 1,14,68,094 shares on offer as of 17:00 IST on July 8, 2026. Another line cited bids of 3.99 crore shares, resulting in an overall subscription of 3.67x by the end of day one. One passage also mentioned “3.99 crore shares bid against 1.08 lakh available”, which differs materially from the other figures presented. Given the differences across sources in the provided material, the day one demand can be summarised as clearly strong, with totals reported in the 3.45x to 3.67x range.

Grey market premium eases, but still implies a premium listing

Grey market premium (GMP) for Kusumgar declined on the day the IPO opened, as per the data cited. One report said GMP fell to ₹156 from ₹168 recorded on Tuesday, July 7, based on investorgain.com data. Another report pegged the GMP at about ₹160 per share. A separate pre-open reference cited unlisted shares trading around ₹590, implying a GMP of ₹171 per share, or 40.81% over the upper issue price.

Based on the upper price band of ₹419 and the reported GMP levels, estimated listing prices were presented as follows: ₹545 per share (₹419 + ₹156) and around ₹579 per share (₹419 + ₹160). The implied upside was described as about 37.23% in one source and nearly 38% in another. These are unofficial indicators and can change quickly, but they help explain the strong early interest seen in subscriptions.

Brokerage views: SBI Securities positive, Swastika neutral

Brokerage commentary in the material showed a split in stance. SBI Securities recommended “Subscribe for long-term” and highlighted valuation at the upper price band. According to its report, at ₹419 the issue is valued at an FY26 P/E of 44.8x. SBI Securities added that while the multiple is higher than peers, it is “in line when adjusted for higher growth across revenue and industry leading EBITDA and PAT margins,” as cited.

Swastika Investmart, on the other hand, assigned a neutral rating. It suggested investors may consider the issue primarily for potential listing gains while maintaining a cautious long-term view, as quoted in the text. Together, these views frame the IPO as a demand-heavy issue on day one, with debate centred on valuation versus growth and profitability metrics mentioned by the broker.

Key IPO facts at a glance

Subscription table (Day 1 snapshots from the text)

The provided material includes more than one subscription snapshot. The table below reproduces one set of category-wise day one figures reported for July 8, 2026.

What to watch through July 10

With the offer open until July 10, the key variables to track are whether QIB participation improves materially, and how the overall subscription trends by day two and day three. The grey market premium is another moving indicator, especially because it was reported to have softened on opening day even while still implying a high premium listing. Investors also have broker commentary to weigh, including the FY26 P/E of 44.8x at the upper band highlighted by SBI Securities and the neutral stance from Swastika Investmart.

Conclusion

Kusumgar’s ₹650 crore OFS IPO drew strong day one interest, with overall subscription reported between about 3.45x and 3.67x, driven primarily by NIIs and supported by retail demand. GMP readings eased from earlier levels but continued to indicate an estimated listing premium in the high-30% range based on the reported figures. The issue remains open until July 10, with the basis of allotment expected around July 13 and a tentative listing date of July 15 as cited in the provided schedule.