The Pune-based KSH International’s ₹710 crore initial public offering (IPO) opens today for the public at a price band of ₹365-384 a share. The IPO concludes on December 18. The lot size for an application is 39. Not less than 35 per cent of the net offer is reserved for retail investors, up to 15 per cent for HNI (NII), and up to 50 per cent for QIBs.
The proposed IPO from a manufacturer of magnet winding wires comprises a fresh issue of ₹420 crore and an offer-for-sale of ₹290 crore by promoters.
Marquee investors
As part of the IPO process, KSH International on Monday raised ₹213 crore from anchor investors, including HSBC Global Investment Funds, Societe Generale, Kotak Mahindra Life Insurance Company, Edelweiss Life Insurance Company, HDFC Mutual Fund (MF), Kotak MF, LIC MF, and Bank of Baroda MF. The company has allotted 55,46,874 equity shares at ₹384 apiece to these anchor investors.
Objective of fundraising
Proceeds from the fresh issue will be used for payment of debt, setting up of new machinery for expansion at its Supa facility and purchasing and setting up of new machinery at Chakan, Pune in Maharashtra; setting up of a rooftop solar power plant for power generation at its Supa facility; and a portion will be used for general corporate purposes.
About KSH International
KSH International Limited is the third-largest manufacturer of magnet winding wires in India by production capacity in FY2025 and the largest exporter by export revenue, with over four decades of operating history, reflecting strong scale, execution capability and global competitiveness.
The Company has a diversified product portfolio comprising round and rectangular enamelled copper and aluminium magnet winding wires, paper-insulated rectangular winding wires, continuously transposed conductors and bunched paper-insulated copper winding wires, which are critical components used in transformers, motors, alternators and generators.
The Company serves a diversified customer base of 122 customers in FY2025, 117 customers in FY2024 and 117 customers in FY2023, exports to 24 countries across the USA, UAE, Europe, the Middle East and Asia, and operates three manufacturing facilities in Maharashtra with a combined installed capacity of 29,045 MT as of June 30, 2025; a fourth facility at Supa, Ahilyanagar commenced operations in September 2025, further strengthening capacity and future growth.
KSH International reported strong financial performance, with revenue increasing from ₹1,382.8 cr in FY24 to ₹1,928.3 crore in FY25 (+39.4% YoY). EBITDA rose from ₹71.5 crore to ₹122.5 crore, with margin expansion to 6.35%, while PAT grew from ₹37.4 crore to ₹68 crore, translating into a PAT margin of 3.5%. Export revenues stood at ₹590.4 crore in FY25, accounting for 30.6% of total revenue. The company also delivered healthy return ratios, with ROE of 22.7% and ROCE of 16.6% in FY25, while maintaining a debt-to-equity ratio of 1.17x.
Brokerages’ recommendations
Angel One: At the upper price band of ₹384, the IPO values the company at a post-issue P/E of 28.68x, indicating that the issue is fairly priced. However, strong earnings growth, improving return ratios, leadership in the magnet winding wires segment, and favourable demand tailwinds from power, renewables, EVs and industrial applications provide healthy long-term visibility. We therefore recommend a “Subscribe” rating for medium to long-term investors.
Key risks: Volatility in copper and aluminium prices can negatively affect the company’s profitability. Any loss of major customers or suppliers, supply disruptions, or delays in passing on sharp raw material price fluctuations could adversely impact margins and overall financial performance.
SBI Securities
KSH International Ltd is India’s largest exporter (by export revenue) and 3rd largest manufacturer (by production capacity) of magnet winding wires as of FY25. Between FY23-FY25, the company has delivered a strong CAGR in Revenue/EBITDA/PAT of 29.0%/32.9%/33.4%, respectively, demonstrating financial resilience. At the upper price band of ₹ 384, the issue is priced at FY25 P/E and EV/EBITDA multiples of 38.3x and 20.7x, respectively, based on post-issue capital. Compared with its closest peers, the issue seems fairly valued, with a slightly superior margin profile.
However, the company plans to repay debt of ~Rs 226 cr from the proceeds of the issue, which is expected to boost profitability by ₹10 crore to ₹13 crore. Thus, we maintain a NEUTRAL view on the company and would like to monitor its performance post listing.