KSH International launches ₹710-crore IPO; price band set at ₹365–₹384 per share

Bilkul Bazaar | By Rafat Quadri

Ahmedabad, December 12, 2025: KSH International Ltd, India’s third-largest manufacturer and the largest exporter of magnet winding wires, announced the launch of its ₹710-crore Initial Public Offering (IPO), which will open for subscription on Tuesday, December 16, 2025, and close on Thursday, December 18, 2025. The price band has been fixed at ₹365–₹384 per equity share with a lot size of 39 shares.

The offer comprises a fresh issue of ₹420 crore and an Offer for Sale (OFS) of up to ₹290 crore by promoters. The company’s management team, led by Rajesh Hegde, Managing Director, and Dhruv Chopra, Head of Investor Relations, along with Amod Joshi, CFO, and Kishan Somani, VP–Corporate Finance, ICICI Securities, announced the IPO details at a press meet in Ahmedabad on Friday.

“A milestone in our 44-year journey”

Speaking at the launch, Rajesh Hegde, Managing Director of KSH International, said:

“This IPO marks a milestone in our 44-year journey of transforming from a single-facility manufacturer in Taloja to a global supplier of high-precision magnet winding wires. The capital raised will help us strengthen our manufacturing footprint and enhance our ability to cater to emerging sectors such as renewables, electric mobility, and high-voltage transmission.”

He emphasized that the company’s consistent growth has been driven by engineering excellence and long-standing customer relationships.

“Our focus has always been on quality and reliability. We are proud to be strategic suppliers to leading OEMs in India and globally. The demand landscape is changing rapidly, and we are well-positioned to capture the next phase of industry growth.”

Strong financials and sector tailwinds

KSH International operates in the cables and wires segment, specializing in magnet winding wires critical for transformers, motors, alternators, EV traction motors, compressors, and wind generators.

The company reported robust performance, with a revenue CAGR of 35.55% between FY23 and FY25—outpacing peers such as Precision Wires India Ltd (PWIL) and Ram Ratna Wires Ltd (RRWL).

During FY25, the company posted:

• Revenue: ₹19,282.9 million
• Net Profit: ₹679.88 million
• EBITDA Margin: 6.35%
• PAT Margin: 3.51%
• ROE: 17.67%
• ROCE: 13.59%

For the June 2025 quarter, KSH reported revenue of ₹5,587.1 million and a net profit of ₹226 million.

Dhruv Chopra, Head of Investor Relations, highlighted the company’s strong market position:

“With the largest export share in India’s magnet winding wire segment and a diversified product portfolio, we see sustained demand from power T&D, renewables, railways, EVs, and data centers. Our approved supplier status for HVDC and EHV transformers is a significant competitive edge.”

Use of Funds and Expansion Strategy

The IPO proceeds will be utilized for:
• Debt repayment – ₹225.98 crore
• Capacity expansion at Supa and Chakan – ₹87 crore
• Modernization and capex for product development and efficiency improvements

Amod Joshi, CFO, noted:

“Our expansion plan is aligned with the rising demand for specialized magnet wires, especially for extra-high-voltage transformers and EV applications. Reducing debt will also strengthen our balance sheet and improve profitability.”

Risks and Market Considerations

Analysts note that while KSH enjoys strong fundamentals, investors should account for:

• High dependency on top 10 customers, contributing over 50% of revenues
• Heavy reliance on a limited set of raw material suppliers
• Revenue concentration in specialty magnet winding wires (over 70%)
• Sensitivity to capex execution timelines

Despite these, institutional confidence remains strong. A pre-IPO placement of ₹35 crore by Malabar India Fund valued the company at over ₹2,600 crore.

IPO Snapshot: KSH International Ltd

Disclaimer: This news is for informational purposes only. Please refer to official offer documents and consult a financial advisor before investing.

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