IPO Overview
The KSH International IPO comprises both a Fresh Issue and an Offer for Sale, aiming to raise a total of ₹710 crore. Proceeds from the Fresh Issue will
primarily be directed towards debt repayment and capital expenditures. The company's financial health is reflected in its performance metrics, including a profit of ₹67.99 crore for the period ending Fiscal 2025. Basic and diluted earnings per share also increased to ₹11.97 in Fiscal 2025. The company's expansion plans include Phase II at the Supa Facility, with a capacity addition of 18,000 MT. Various banks have been appointed as bankers to the company for the IPO. The company also disclosed that the net proceeds will not be used for investments in equity shares of other companies. Moreover, KSH International is the third-largest magnet winding wire manufacturer in India. Key end-use sectors for magnet winding wires are also detailed in the updates. The company is poised to advance offer costs and seek reimbursement from Promoter Selling Shareholders.
Financial Performance Analysis
KSH International's financial performance showed several positive trends. The company's revenue from exports increased to ₹590.4 crore in Fiscal 2025. The Basic and diluted EPS show growth over recent fiscal years. Return on Net Worth (RoNW) showed improvement over the last three years. The Fixed Asset Turnover Ratio improved to 15.19 times in Fiscal 2025, indicating efficient asset utilization. The Net Debt to Equity ratio increased to 1.17 times in Fiscal 2025, and operating cash flow turned negative in Fiscal 2025. Net Asset Value per Equity Share increased to ₹56.58 as of June 30, 2025. Operating cash flow turned negative in Fiscal 2025, and financing activities generated ₹122.89 crore in Fiscal 2025. Significant capital expenditure was incurred in Fiscal 2025. The company's cash and cash equivalents stood at ₹10.37 crore at Fiscal 2025 end. The company is compared with listed peers, showing competitive financial metrics, with an average Industry peer group EV/Operating EBITDA ratio of 23.37 times and an average Industry peer group P/E ratio of 45.48 times.
Strategic Initiatives and Plans
The company has multiple strategic initiatives underway. A rooftop solar power plant installation is planned at the Supa Facility. Phase II Expansion at the Supa Facility is planned to add 18,000 MT capacity. New machinery is also planned for Unit 2 in Chakan, Pune, and purchase orders have already been placed. The company will disclose the utilization and deviations of Gross Proceeds quarterly, showing a commitment to transparency. KSH International is also focusing on improving its production capacity, which remained steady at 29,045 MT in Fiscal 2025. The company secretary and compliance officer have been appointed. Further, the company has no outstanding convertible securities except ESOP 2025, with details and compliance in place.
Market Dynamics and Growth
The magnet winding wires market and the broader Indian market are crucial for KSH International's growth. The Indian Transformer Market and Growth Outlook are positive. Key end-use sectors for magnet winding wires drive the market. The adoption of Electric Vehicles and its impact on winding wires are also considered. Moreover, the Indian Electric Wires and Cables Market is showing growth. Export growth in electric wires and cables is another positive sign. The Indian Railways' major infrastructure expansion also contributes to the market. KSH International's magnet winding wires sales volume increased by 8.51% in Fiscal 2025, showcasing the growth in this segment.
IPO Process and Legal Aspects
The IPO process includes multiple stakeholders and intermediaries. Book Running Lead Managers have been appointed for the IPO, with details of designated intermediaries and syndicate members. Legal counsel and statutory auditors are also engaged for the IPO. Offer expenses are to be shared between the company and Promoter Selling Shareholders. Experts have provided written consent for inclusion in the Red Herring Prospectus. The basis for the Offer Price includes qualitative and quantitative factors. Furthermore, prepayment penalties are applicable except when paid from fresh equity or internal accruals. The offer-related expenses will be shared pro rata between the company and promoters.
