Kusumgar Ltd. IPO

Kusumgar

• Kusumgar is coming out with a 100% book building; initial public offering (IPO) of 1,63,41,209 shares of face value Rs 1 each in a price band Rs 398-419 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on July 8, 2026 and will close on July 10, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 398 times of its face value on the lower side and 419 times on the higher side.
• Book running lead managers to the issue are Axis Capital, IIFL Capital Services and Motilal Oswal Investment Advisors.
• Compliance officer for the issue is Devanand Parshottam Mojidra.  

Profile of the company 

Kusumgar is a manufacturer of woven, coated and laminated synthetic fabrics, referred to as engineered fabrics. It offers engineered fabrics and solutions focusing on polyamides and polyester filaments and polyurethane chemistry that cater to the high-performance requirements of its customers. Its expertise is manufacturing fabrics where critical performance parameters include tensile strength, tear strength, abrasion resistance, comfort, airpermeability, and water proofing, among others. 

The company has leveraged its process knowledge and product development expertise to manufacture unique fabric configurations to build a niche around synthetic functional and performance fabrics, addressing growing demand in the aerospace and defence, industrial and automotive, and outdoor and lifestyle segments. In recent years, the company has built on its expertise and industry knowledge to expand into manufacturing finished products for aerospace and military applications, such as parachute systems, stealth solutions, and rapid deployment systems.

The engineered fabrics industry is an industry that requires precision and a high level of technical know-how. It leverages its technical strengths and partnerships to focus on high-technology applications. Its business model drives profitable growth, and it is poised for continued growth, driven by exports, global supply chain shifts, modernisation and indigenisation of military equipment, expanded product lines and technological innovations. It manufactures products primarily for four market segments: (i) Aerospace and Defence Fabrics; (ii) Aerospace and Defence Solutions; (iii) Industrial and Automotive Fabrics; and (iv) Outdoor and Lifestyle Fabrics, each of which has high entry barriers

Proceed is being used for: 

• The object of the offer is to carry out the offer for sale of equity shares of face value of Rs 1
• Achieving the benefits of listing the equity shares on the stock exchanges

Industry overview

Engineered fabrics are a subset of technical textiles, which are advanced textiles designed to deliver functional performance rather than just aesthetic appeal, serving specific industrial, commercial, and protective needs. Amongst the different categories of technical textiles, engineered fabrics are specially developed and custommade textiles designed through advanced manufacturing techniques to meet specific functional requirements and, beyond functionality, are created for enhanced performance in specialised applications. They are characterised by superior properties such as durability, moisture resistance, breathability, flexibility, and high tensile strength. Engineered fabrics are also different from conventional fabrics, which are created with aesthetic appeal and comfort as the primary considerations.

India’s engineered fabrics industry, as measured by domestic consumption (including imports) and excluding exports, was valued at Rs 558.8 billion ($6.3 billion) in Fiscal 2020 and reached Rs 990.0 billion ($11.2 billion) in Fiscal 2026, growing at a CAGR of 10.0% during Fiscal 2020-2026. The market is expected to grow further and reach a value of Rs 1,864.7 billion ($21.1 billion) by Fiscal 2031, registering a CAGR of 13.5% during Fiscal 2026-2031. In Fiscal 2026, the industrial and automobile segment dominated the Indian engineered fabrics industry, as measured by domestic consumption (including imports) and excluding exports, with a 56.6% share, followed by the outdoor and lifestyle segment at 32.6%, and the defence and aerospace segment at 5.9%. By Fiscal 2031, the industrial and automobile segment is projected to rise to 57.8.8%, while the outdoor and lifestyle segment is expected to account for 27.9%, and the defence and aerospace segment to 7.8%.

The Indian engineered fabrics industry, as measured by domestic consumption (including imports) and excluding exports, is growing through strong government policies, R&D advancements in high-speciality fabrics, an expanding global market (due to factors including the diversification of supply chains by major manufacturers), increased adoption of sustainable, high-tech textiles and the diversification of supply chains by major manufacturers. Standardisation and quality control measures are also driving domestic production and export competitiveness, while India leverages the China+1 strategy to position itself as a reliable alternative manufacturing hub for global buyers seeking supply chain diversification.

Pros and strengths 

Technical capabilities allow to develop and supply unique solutions for customers: The company offers synthetic engineered fabrics and solutions that cater to the high-performance requirements of its customers. It has strategically focused on building a niche around synthetic functional and performance fabrics, addressing growing demand in the aerospace and defence, industrial and outdoor sectors. Its core expertise lies in working with polyamide and polyester filaments and polyurethane chemistry. Its most salient technical strengths are: (i) its light fabrics made of fine denier yarns; (ii) its ability to handle Nylon 6 and Nylon 66; (iii) its complex fabric engineering; (iv) its coating and lamination capabilities; and (v) its integrated fabric value chain.

Long-standing relationships with key customers: The company has long-standing relationships with its key customers, which allows it to increase its wallet share. In Fiscal 2026, its top six customers accounted for Rs 3,330.34 million, or 49.35%, of its revenue from contracts with customers.

Its track record has given it access to technology and markets through partnerships: The company has partnerships which increase the value of its business by creating moats around business opportunities. These relationships also help ensure a continuous stream of opportunities. Through licensing and co-development arrangements, it gains access to proprietary technologies and specialized know-how that accelerate its product development cycles and allow it to participate in the programs of its partners which are often global in scope and highly sophisticated. These partnerships enhance its credibility with both government and private sector customers, opening doors to new tenders and programs that may otherwise be inaccessible to other players.

It operates in markets with high entry barriers: Since 1970, it has developed and manufactured over 1,000 unique engineered fabrics. Market entry barriers for its products are high and include (i) technical knowledge, (ii) long product approval cycles, (iii) customized solutions, (iv) partnerships with leading brands and manufacturers, (v) customer loyalty for life-preserving features, and (vi) manufacturer size and infrastructure.

Risks and concerns

Dependent on Aerospace and Defence Fabrics, Aerospace and Defence Solutions, and Industrial and Automotive Fabrics segments: The company is highly dependent on its Aerospace and Defence Fabrics, Aerospace and Defence Solutions, and Industrial and Automotive Fabrics segments. The company derived 31.67%, 24.43% and 22.97% of its revenue from contracts with customers for Fiscal 2026 from its Aerospace and Defence Fabrics, Industrial and Automotive Fabrics, and Aerospace and Defence Solutions market segments, respectively. If there is any decline in demand for aerospace and defence fabrics, industrial and automotive fabrics, and aerospace and defence solutions, it could have a material adverse effect on its business, financial condition, results of operations and cash flows

Significant revenue contribution from top 10 customers: The have derived and expect to continue to derive a significant portion of its revenue from its top 10 customers, which exposes it to customer concentration risks. The company's top ten customers contributed 59.52%, 84.69%, and 80.18% of its revenue from contracts with customers for Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. The company generally does not have long-term agreements with its customers and it did not have long-term agreements with any of its top 10 customers for Fiscals 2026, 2025 or 2024. As a result, its top customer generally varies from year to year, leading to volatility in its top customer contribution. Any decrease in sales to such customers or the loss of such customers could have an adverse effect on its business, results of operations, financial condition and cash flows.

Export revenue vulnerable to global market risks: The company’s exports to international markets accounted for 39.99%, 23.22% and 25.62% of revenue from contracts with customers for Fiscals 2026, 2025 and 2024, respectively. As an exporter, it is particularly exposed to risks arising from changes in government regulations or policies affecting international trade. For Indian exporters, higher tariffs could dampen business sentiment and reduce international demand for manufactured products. Countries impose, modify, and remove tariffs and other trade restrictions in response to a diverse array of factors, including global and national economic and political conditions, which make it impossible for the company to predict future developments regarding tariffs and other trade restrictions. Any changes in government regulations or policies affecting international trade or any downturn in the macroeconomic environment or geopolitical risks in India, the United States or the European Union may have an adverse effect on its business, results of operations and financial condition.

Regional disruptions in Gujarat may adversely impact manufacturing facilities: All six of its manufacturing facilities are in Gujarat. Due to the geographic concentration of its manufacturing facilities, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, political changes and other unforeseen events and circumstances. Further, any such adverse development affecting continuing operations at its manufacturing facilities could result in significant loss due to an inability to meet production schedules, which could adversely affect its business, results of operations, financial condition and cash flows. 

Outlook  

Kusumgar is a specialist in the engineered fabric industry with a history of successfully delivering bespoke solutions to customers. The company manufactures specialised products using advanced technical processes, making it difficult to replicate comparable products. The company has been a pioneer in the engineered fabrics industry for certain unique fabric configurations, such as parachute fabric. Kusumgar is also recognised as one of the major players in military parachute fabrics outside the United States and China, and as one of the major manufacturers domestically of high-performance technical fabrics for parachutes, heddle belts and spindle tapes, with a limited number of companies selling such products in comparable quantities. On the concern side, in order to get better pricing by buying in larger volumes, it generally buys the primary materials it needs from a few suppliers. For Fiscal 2026, its cost of materials consumed purchased from its top 10 suppliers represented 51.42% of its cost of materials consumed. It has not entered into long-term agreements with these suppliers and if any of its top 10 suppliers ceased selling it the materials it requires in the quantities it needs, and it was unable to find a supplier to replace it, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The issue has been offering 1,63,41,209 shares in a price band of Rs 398-419 per equity share. The aggregate size of the offer is around Rs 650.38 crore to Rs 684.70 crore based on lower and upper price band respectively. On performance front, its revenue from operations decreased by 11.17% to Rs 6,920.03 million for Fiscal 2026 from Rs 7,789.97 million for Fiscal 2025. Its profit for the year decreased by 12.31% to Rs 982.00 million for Fiscal 2026 from Rs 1,119.88 million for Fiscal 2025.

Meanwhile, the company will continue to invest in its capabilities and people to support growth, research and development, and efficiency improvement. It will continue to recruit new industry and product-related experts and to promote its culture of continuous improvement and relentless innovation. This new expertise will combine with its existing teams to enhance research and development efforts leading to new products, novel product-specific technologies and increased conversion rates. It outsources certain processes, including weaving, knitting, finishing and fabrication, wherever there is limited differentiation. It will continue to use such outsourcing where feasible and economical to improve the efficiency of its own assets. It will continue to update its machines to the best technology available and to automate wherever possible.

Pooja Logistics

• Pooja Logistics is coming out with an initial public offering (IPO) of 38,46,000 shares in a price band of Rs 109-115 per equity share.
• The issue will open for subscription on September 23, 2026 and will close on September 25, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 10.90 times of its face value on the lower side and 11.50 times on the higher side.
• Book running lead manager to the issue are Share India Capital Services and Maashitla Securities.
• Compliance officer for the issue is Ashish Bisht.

Profile of the company

Pooja Logistics is engaged in providing temperature-controlled logistics services for the transportation of perishable goods across India through refrigerated trucks (reefers). Since incorporation in 2011, it has been offering cold chain logistics services to a range of industries. Its in-house fleet as on March 31, 2026 comprises over 424 GPS-enabled vehicles dedicated to the transportation of temperature-sensitive goods. It caters to clients operating in the confectionery, dairy and dairy products, quick-service restaurants (QSRs), pharmaceuticals, and e-commerce sectors. It transports temperature-sensitive consignments while maintaining operational systems designed to maintain compliance with applicable standards. Its fleet consists of trucks with different sizes and capacities, enabling it to undertake a range of assignments. It generally operates on a trip-to-trip model, based on customer requirements. 

It has implemented various technology-enabled operational processes, including: i) a process for scheduling orders, where goods are picked up from the client’s origin warehouse, transported under monitored temperatures, and delivered at the destination with verification; ii) GPS-tracking software ‘Geo Trackers’ to provide visibility of vehicle movement and shipment status; iii) vehicle movement reports for monitoring and managing temperature levels in reefers; and iv) driver and truck management systems. These systems support real-time temperature tracking, route optimization, and monitoring of vehicle operations. 

Its temperature-controlled logistics services are aimed at the transportation of perishable products under controlled conditions using reefer vehicles. Upon reaching the delivery location, goods are unloaded as per defined protocols. It has obtained certifications from FSSAI for facilitating the delivery of perishable goods. It intends to expand certifications in line with customer and regulatory requirements.

Proceed is being used for:

• Purchase of vehicles (goods carriages)
• Public issue related expenses
• General corporate purpose

Industry overview

The India logistics market size was valued at $228.4 billion in 2024 and is projected to reach $428.7 billion by 2033. The market in India is estimated to grow at a CAGR of 6.50% from 2025-2033. The market growth is attributed to the growing e-commerce, infrastructure development, rising demand for cold chain logistics, increasing international trade, adoption of digital technologies, expansion of manufacturing and retail sectors, improved warehousing solutions, and greater focus on supply chain efficiency. 

The growing demand for perishable goods, ranging from dairy products to vaccines and biologics is propelling the growth of the Indian cold chain logistics sector. The Indian cold chain transportation market is expected to grow from $12.77 billion in 2025 to $20.31 billion by 2030 at a CAGR of 9.72% between the forecast years. This growth trajectory is fueled by evolving consumer preferences, rapid urbanization, and a sharp rise in organized retail and e commerce for temperature-sensitive goods. India continues to rank among the top global producers of perishable commodities. It is the largest producer of milk, second largest producer of fruits and vegetables, and a leading manufacturer of generic pharmaceuticals. Recent government initiatives such as the PM Gati Shakti scheme and PLI schemes in multimodal logistics are rapidly transforming the cold chain ecosystem. 

The FMCG sector in India has expanded steadily, supported by consumer-driven growth and higher product prices, particularly for essential goods. It provides employment to around three million people, accounting for approximately 5% of total factory employment in the country. As India’s fourth-largest sector, FMCG plays a vital role in the economy, with household and personal care products alone contributing 50% of total FMCG sales. Looking ahead, India’s FMCG sector is expected to record a slight revenue increase of 100 to 200 basis points, bringing growth to 6 to 8% in FY26, supported by stable rural demand and a revival in urban markets. 

Pros and strengths

Owned refrigerated vehicle fleet: It owns and operates a fleet of more than 424 GPS-enabled refrigerated vehicles, which supports direct operational oversight of transportation activities. The fleet includes both single-compartment and multi-compartment reefers, with load capacities ranging from around 5 tonnes to 20 tonnes, and is equipped to maintain temperatures suitable for frozen (-18 degree Celsius to -10 degree Celsius) and chilled (0 degree Celsius to +4 degree Celsius) storage. This allows it to handle a range of perishable goods, including pharmaceuticals, dairy products, confectionery, quick-service restaurant supplies, and e-commerce consignments, on a trip-to-trip basis. Fleet ownership reduces reliance on third-party logistics providers and enables internal management of route planning, vehicle scheduling, and shipment tracking through GPS-based systems. These capabilities are intended to support asset utilization and help in maintaining delivery timelines.

Geographic reach of the company: The company provides temperature-controlled logistics services across multiple regions in India. Its services cover more than 26 States, serving clients across various segments of the Fast-Moving Consumer Goods (FMCG) sector, including pharmaceuticals, dairy and dairy products, confectionery, quick-service restaurants, Frozen meat, etc. It continues to expand its geographic footprint in response to customer demand and operational considerations.

Compensation to customers for losses or damages to goods: As the company is engaged in providing temperature-controlled logistics services for the transportation of perishable goods, there may, in the ordinary course of business, be instances of shortages or deductions arising from damage to or loss of goods during transit. While the company has not experienced any material instances of damage or loss of goods in the past, there have been limited and non-material instances where compensation was paid towards such shortages or damages.

Risks and concerns

Dependence on limited customers: It depends on a limited number of customers for a majority of its revenues, which exposes it to a risk of customer concentration. Fluctuations in the performance of the industries in which its customers operate may result in a loss of customers, a decrease in the volume of work it undertakes or the price at which it offers its services. There is no guarantee that it will retain the business of its existing customers or maintain the current level of business with each of these customers. The company’s top ten customers contributed 68.15%, 75.55%, and 81.61% of its revenue from operations in Fiscal 2026, 2025 and 2024, respectively.

High reliance on FMCG sector: The company’s reliance on particular industries for a significant portion of its sales could have an adverse effect on its business, results of operations and financial conditions. A major portion of its business comes from customers in the FMCG industry. The company’s revenue from FMCG contribution was 95.07%, 95.85%, and 72.73% in Fiscal 2026, 2025 and 2024, respectively. Any slowdown, regulatory changes, supply chain disruptions, or other adverse developments in this industry may reduce the demand for its services.

Exposure to traffic challans and regulatory enforcement: In the ordinary course of its logistics and transportation operations, its fleet of commercial vehicles may be subject to traffic challans or other violations. Such instances are inherent to the industry and are generally resolved through Lok Adalats, as and when organized by the government. Recently, it has settled certain traffic challans in Lok Adalat proceedings, while the remaining challans are in the process of being settled and are expected to be resolved in a similar manner. While no significant or uncertain liability has arisen in this regard in the Past. Further, there can be no assurance that future violations will not result in higher penalties, adverse publicity, or stricter enforcement measures. Any such developments could increase its operating costs or otherwise adversely affect its business, results of operations, and financial condition. 

Outlook

Pooja Logistics is a logistics company, engaged in temperature-controlled logistics service provider in the transportation of perishable goods across India through refrigerated trucks (reefers). It provides temperature-controlled logistics services across multiple regions in India. Its services cover more than 26 States, serving clients across various segments of the FMCG sector, including pharmaceuticals, dairy and dairy products, confectionery, quick-service restaurants, Frozen meat, etc. It continues to expand its geographic footprint in response to customer demand and operational considerations. On the concern side, its operations are primarily concentrated in the states of Delhi, Haryana, Maharashtra, and Uttar Pradesh. A substantial portion of its revenue, assets, and customer base is derived from these regions. Any materially adverse social, political or economic development, civil disruptions, or changes in the policies of the state/central government or state or local governments, may require a modification of its business strategy, or require it to incur significant suspend its services.

The company is coming out with a maiden IPO of 38,46,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 109 - 115 per equity share. The aggregate size of the offer is around Rs 41.92 crore to Rs 44.23 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 11.38% from Rs 14,877.10 lakh in Fiscal 2025 to Rs 16,570.10 lakh in Fiscal 2026. Profit after tax increased 11.95% from Rs 1,102.23 lakh in Fiscal 2025 to Rs 1,233.98 lakh in Fiscal 2026.

Meanwhile, it aims to adopt environmentally sustainable practices by gradually integrating electric vehicles (EVs) and incorporating CNG powered trucks into its fleet. As on date, it operates 2 electric vehicles and around 141 CNG-powered vehicles. These initiatives are expected to reduce operational emissions and align with broader industry trends in sustainable logistics. Additionally, it is in the process of digitizing various operational workflows to reduce paper usage, increase process efficiency, and enhance monitoring systems. These changes are anticipated to contribute to improved internal controls and resource utilization.