KSH INTERNATIONAL IPO

KSH INTERNATIONAL IPO

Key IPO Parameters at a Glance

KSH International Limited is gearing up for its Initial Public Offering (IPO), inviting investors to participate in its growth journey. This much-anticipated offering is set to open for subscription soon, providing an opportunity to invest in a prominent manufacturer of magnet winding wires with a strong market presence. The IPO structure and pricing have been meticulously set to attract a wide range of investors, from retail participants to institutional buyers, reflecting the company’s commitment to broad-based ownership.

Important Dates for Investors

• Opening Date: 16 Dec 2025
• Closing Date: 18 Dec 2025
• UPI Payment Deadline: 18 Dec 2025 (5 PM)
• Allotment Announcement: 19 Dec 2025
• Refund Processing: 22 Dec 2025
• Demat Credit: 22 Dec 2025
• Stock Market Listing: 23 Dec 2025
• Mandate Validity End: 02 Jan 2026
• Anchor Investor Lock-in Release (50%): 18 Jan 2026
• Anchor Investor Lock-in Release (Remaining): 18 Mar 2026

*Dates may be revised as per official updates.

These dates are crucial for investors planning their application. Adhering to the deadlines, especially for UPI mandates, is essential to ensure a successful application. The subsequent dates for allotment, refund initiation, and demat credit are important for tracking the status of your investment, leading up to the eagerly awaited listing on the stock exchanges.

Understanding KSH International: A Business Overview

Established as a private entity and subsequently transitioning into a public limited company, KSH International Limited has carved a significant niche as a leading manufacturer of magnet winding wires. The company operates integrated, state-of-the-art manufacturing facilities strategically located in Pune, India. KSH International specializes in producing a comprehensive range of standard and special magnet winding wires, catering to a diverse array of critical industrial sectors.

Its robust product portfolio finds application across vital industries such as power generation and distribution, renewable energy solutions, home appliances, automotive components, railway systems, and various industrial equipment. This wide sectoral reach highlights the indispensability of KSH International’s products in modern infrastructure and manufacturing.

The company primarily operates on a Business-to-Business (B2B) model, serving Original Equipment Manufacturers (OEMs) and large industrial customers. This focused approach allows KSH International to build strong, long-term relationships with its clients, understanding their specific needs and delivering tailored solutions. Supported by a growing and efficient sales network, KSH International boasts a significant presence not only across India but also in key international markets including North America, Europe, and Brazil, underscoring its strong export capabilities and global footprint. The company is spearheaded by a dynamic promoter group comprising Kushal Subbayya Hegde, Rajesh Kushal Hegde, and Rohit Kushal Hegde, backed by an experienced leadership team dedicated to innovation and sustainable growth.

Issue Structure and Capital Mobilization

The KSH International IPO comprises a total issue size of ₹710 crore. This substantial amount is segmented into two main components: a Fresh Issue and an Offer for Sale (OFS).

The Fresh Issue component, valued at ₹420 crore, represents capital raised directly by the company for its future business operations and expansion plans. Proceeds from the Fresh Issue are crucial for funding the company’s strategic initiatives, which include debt repayment, capital expenditure for machinery, and investment in sustainable energy solutions, all aimed at bolstering its operational efficiency and market position.

The Offer for Sale (OFS) component amounts to ₹290 crore. In an OFS, existing shareholders sell a portion of their holdings to new public investors. The proceeds from this segment go directly to the selling shareholders and not to the company. This mechanism allows early investors and promoters to unlock value from their investment, while still maintaining significant stakes in the company, signaling continued confidence in its long-term prospects.

KSH International has demonstrated a proven track record of consistent revenue and EBITDA growth over the years, a testament to its robust business model and operational excellence. The company’s commitment to continuous investment in technology, capacity expansion, and new product development is expected to drive further long-term growth and profitability, making this IPO an attractive proposition for investors looking for stability and growth in the manufacturing sector.

Strategic Utilization of Fresh Issue Proceeds

The capital raised through the Fresh Issue component of the IPO is strategically allocated to support KSH International’s growth and operational efficiency. A significant portion, 53.81% (₹225.98 crore), is earmarked for the repayment or prepayment of outstanding borrowings. This move is expected to strengthen the company’s balance sheet by reducing its debt burden, thereby improving its financial leverage and freeing up cash flow for future investments and operational needs.

Further, 20.72% (₹87.02 crore) of the proceeds will be invested in the purchase and setup of new machinery across two of its manufacturing plants. This capital expenditure is vital for enhancing production capacity, adopting advanced manufacturing technologies, and improving overall efficiency, ensuring KSH International remains at the forefront of the magnet winding wire industry.

A smaller yet impactful portion, 2.10% (₹8.83 crore), is allocated for establishing a rooftop solar power plant at its Supa Facility. This initiative underscores the company’s commitment to sustainability and reducing its carbon footprint, while also offering long-term operational cost savings through renewable energy adoption.

The remaining 23.37% (₹98.17 crore) is designated for general corporate purposes. This flexible allocation provides the company with the necessary capital to address various strategic needs, including working capital requirements, business development activities, inorganic growth opportunities, and other operational expenses that may arise in the course of business.

Core Strengths and Market Advantages

• Leadership in Magnet Winding Wires: KSH International stands as one of India’s pre-eminent manufacturers of magnet winding wires, offering a comprehensive product suite that caters to a wide spectrum of industrial requirements. This leadership position is built on decades of expertise, advanced manufacturing processes, and a relentless focus on quality.
• Diversified Product Portfolio: The company boasts a highly diversified product portfolio, intelligently designed to serve multiple end-use industries. This diversification mitigates sector-specific risks and enables strong cross-selling opportunities, ensuring a stable revenue stream and broader market penetration.
• Critical Application Products: KSH International’s products are integral to critical applications across a vast array of sectors including power generation and transmission, renewable energy, the automotive industry, general industrial machinery, railway infrastructure, and various home appliances. The high demand and essential nature of these applications provide inherent stability and growth potential for the company.
• Strategic Manufacturing Facilities: With large, strategically located manufacturing facilities, KSH International possesses significant installed capacity. The ongoing expansion efforts further augment its production capabilities, allowing the company to scale operations effectively and meet increasing market demand, both domestically and internationally.
• Dominant Export Presence: KSH International holds the distinction of being the largest exporter of magnet winding wires from India in FY25. This strong export presence not only demonstrates its global competitiveness and product acceptance but also diversifies its revenue sources beyond the domestic market, providing resilience against regional economic fluctuations.

Key Risks to Consider

• High Customer Concentration: A significant proportion of KSH International’s total revenue is derived from its top customers, consistently exceeding half of its total sales across multiple years. This high dependence on a limited number of clients poses a concentration risk, where the loss of, or reduced business from, a major customer could materially impact the company’s financial performance.
• Raw Material Price Volatility: The company is significantly exposed to the price volatility of key raw materials, particularly copper and aluminium. Fluctuations in global commodity markets for these metals, which are essential inputs for magnet winding wires, can directly affect KSH International’s cost of production and, consequently, its profitability, if these costs cannot be effectively passed on to customers.
• Operational Hazards in Manufacturing: The nature of manufacturing processes at KSH International’s facilities involves inherent operational hazards. These include risks such as equipment failure, potential fire incidents, workplace accidents, and force-majeure events. Any such incident could lead to production disruptions, property damage, and potential liabilities, impacting operational continuity and financial results.
• Adequacy of Insurance Coverage: While the company maintains insurance coverage for various operational and catastrophic risks, there is a potential concern that the existing coverage may not be adequate to fully cover all possible losses or liabilities arising from major events. Insufficient insurance could expose the company to substantial financial burdens in the event of a significant unforeseen incident.
• Accounting Standards Differences: Differences between Indian Accounting Standards (Ind AS) and other international accounting standards (such as IFRS or US GAAP) may lead to varying interpretations of KSH International’s financial statements by global investors. This disparity could potentially affect how international investors perceive the company’s financial health, performance, and valuation metrics, adding complexity to investment analysis.

Live Subscription Status Update

Subscription statistics based on the latest available information as of 05:00 PM on December 16, 2025, indicate the initial interest from various investor categories. Investors should monitor these figures closely as they evolve throughout the IPO period.

Initial subscription figures provide a snapshot of investor demand. Qualified Institutional Buyers (QIBs) typically subscribe towards the end of the bidding period, while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) show earlier participation. It is advisable to refer to official exchange data for the most accurate and up-to-date subscription numbers, as these are the most reliable indicators of market interest.

*GMP figures are unofficial and may vary; exchange data is more reliable.

Participating in the KSH International IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes. Ensure you have a demat account and complete the application process well within the stipulated timelines to avoid any last-minute issues. Review the prospectus carefully to make an informed investment decision aligned with your financial objectives.