KSH International IPO: From issue details to financials; Here’s what you need to know

Synopsis: India’s third-largest magnet winding wire maker launches a ₹710 crore IPO to reduce debt and fund expansion amid strong growth but rising leverage concerns.

A leading manufacturer and exporter of magnet winding wires is set to debut on the public markets for repayment of debt and business expansion. The company’s IPO will be open to investors for subscription next week. This article presents the insights of research analysts from Trade Brains portal, providing an in-depth review of the company’s profile, financial performance, peer comparison, industry landscape, and more.

Key IPO details

KSH International, India’s third-largest magnet winding wire manufacturer, will open its mainboard IPO for subscription from December 16–18, 2025, with the listing expected by December 23 on both the BSE and NSE. The ₹710-crore IPO will include a fresh issue and an offer for sale (OFS). The fresh issue will amount to ₹420 crore, while the OFS will total ₹290 crore. The price band has been set between ₹365 and ₹384 per share.

Grey Market Activity

Information about grey market premium for KSH International IPO remains limited as of December 12, 2025. The IPO is scheduled to open in five days, on December 16, 2025. Grey market trading typically gains momentum closer to the issue opening date. Investors can track real-time GMP updates through various IPO tracking platforms.​

Company Background and Operations

KSH International began operations in 1979 as a magnet winding wire manufacturer. The company operates four manufacturing facilities across Maharashtra. Three plants are located in Chakan, Pune, and Taloja, Raigad. A fourth facility in Supa, Ahilyanagar, commenced operations in September 2025.​

The company exports products to 24 countries, including the USA, UAE, Germany, and Japan. Major customers include Bharat Bijlee, BHEL, Hitachi Energy India, Siemens Energy India, and CG Power. KSH International markets all products under the ‘KSH’ brand name. The company served 122 customers in FY25 and invoiced 93 customers during Q1 FY26.​

Promoter Information

The company’s promoters include four members of the Hegde family. Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde, and Rohit Kushal Hegde are the primary promoters. Before the IPO, promoters held a 98.40% stake in the company. 

Offer-for-Sale Details

The offer-for-sale component totals Rs 290 crore worth of equity shares. Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde, and Rohit Kushal Hegde are divesting shares. The combined OFS represents 75.52 lakh shares at the upper price band. All four promoters are participating in the share sale.​

Nuvama Wealth Management Ltd and ICICI Securities Ltd serve as book-running lead managers for this IPO. MUFG Intime India Private Limited has been appointed as the registrar to the offer. Retail investors can apply with a minimum investment of Rs 14,976. The lot size is fixed at 39 shares per application.

Fund Utilization Plan

The fresh issue proceeds of Rs 420 crore will address specific business needs. The company will allocate Rs 225.98 crore for prepayment or repayment of outstanding borrowings. Capital expenditure for new machinery at Supa Facility and Unit 2 in Chakan will receive Rs 87.02 crore. Another Rs 8.83 crore will fund a rooftop solar power plant at the Supa Facility. The remaining proceeds will support general corporate purposes.​

Financial Performance Analysis

KSH International posted revenue of Rs 1,928 crore in FY25, marking 39% year-on-year growth from Rs 1,383 crore. Profit after tax nearly doubled with 84% growth, climbing to Rs 68 crore from Rs 37 crore. In Q1 FY26, the company achieved revenue of Rs 559 crore. EBITDA reached Rs 44 crore during this period. Profit after tax for the quarter was Rs 23 crore.

Moreover, total assets expanded 54.2% to Rs 745 crore in FY25 from Rs 483 crore previously. Capital work-in-progress jumped dramatically to Rs 108 crore from Rs 7 crore. Equity share capital increased as the company issued additional shares. Total borrowings rose substantially from Rs 207 crore in FY24 to Rs 360 crore in FY25. Consequently, finance costs increased from Rs 18 crore to Rs 28 crore. This elevated debt burden creates pressure on profitability and cash generation capabilities.

Competitive Positioning

KSH International holds a strong position among domestic peers in the magnet winding wire segment. The company production capacity stands at 29,045 MT with actual sales volume of 23,324 MT. Export revenue contributed Rs 590.36 crore to total operations.

Return on equity reached 22.77%, while return on capital employed stood at 16.60%. However, the net debt-to-equity ratio of 1.17 indicates significant leverage. Its peer Precision Wires India Limited operates with 49,000 MT capacity and generated Rs 4,015 crore revenue. Another competitor, Ram Ratna Wires Limited, has 48,600 MT capacity with Rs 3,677 crore in revenue.

Customer concentration presents a significant risk as the top 10 customers contribute 54-59% of total revenue. Loss of any major client could substantially impact business performance. Similarly, the top 10 suppliers account for over 96% of raw material procurement without long-term contracts. This creates vulnerability to supply disruptions and price fluctuations.

The magnet winding wire market faces intense competition from established global players and a large unorganized segment. Competitors with broader portfolios and stronger distribution networks may intensify pricing pressure. Rising debt levels also create financial stress, as total borrowings jumped from Rs 207 crore to Rs 360 crore in FY25.

Investment Considerations

KSH International demonstrates strong revenue growth and improving profitability metrics with 39% top-line expansion and 84% PAT growth in FY25. The company’s market leadership in exports and third-largest domestic production capacity provide competitive positioning. 

India’s expanding power transmission infrastructure, electric vehicle adoption, and industrial growth support long-term demand for magnet winding wires. The company’s capacity expansion and new Supa facility position it to capture increasing market opportunities.

Nevertheless, investors should carefully evaluate multiple risk factors before making investment decisions. High customer and supplier concentration creates dependency risks that could impact revenue stability. Negative operating cash flows and rising debt levels raise concerns about financial health and liquidity management. Prospective investors must weigh growth opportunities against operational risks and financial constraints before participating in this public offering.

Written By Fazal Ul Vahab C H

Disclaimer

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