KSH International IPO Review: GMP, Price Band, Financials & Should You Invest?
The primary market is heating up this December! As we move past the excitement of the ICICI Prudential AMC IPO, all eyes are now on the KSH International Limited IPO, which opens for subscription tomorrow, Tuesday, December 16, 2025.
As one of India’s leading manufacturers of magnet winding wires, KSH International brings a strong fundamental story to Dalal Street. But with the Grey Market Premium (GMP) currently showing mixed signals, is this issue worth your money? In this detailed post, we break down the company's financials, GMP trends, and key risks to help you make an informed decision.
1. KSH International IPO: Key Highlights & Details
Before diving into the analysis, here is a quick snapshot of the essential details you need to know.
| Feature | Details |
|---|---|
| IPO Open Date | December 16, 2025 |
| IPO Close Date | December 18, 2025 |
| Price Band | ₹365 to ₹384 per share |
| Lot Size | 39 Shares |
| Total Issue Size | ₹710 Crores |
| Fresh Issue | ₹420 Crores |
| Offer For Sale (OFS) | ₹290 Crores |
| Listing Exchanges | BSE & NSE |
| Tentative Listing Date | December 23, 2025 |
Investment Limits
- Retail Investors: Minimum 1 Lot (39 Shares) requires ₹14,976.
- sNII (Small HNI): Minimum 14 Lots (546 Shares) requires ₹2,09,664.
- bNII (Big HNI): Minimum 67 Lots (2,613 Shares) requires ₹10,03,392.
2. What Does KSH International Do?
Founded in 1979, KSH International Limited has established itself as a key player in the electrical components sector. They are the 3rd largest manufacturer of magnet winding wires in India and the largest exporter of these products by revenue (as of Fiscal 2025).
Core Product Portfolio
Their products are critical components for the power and energy sectors. They manufacture:
- Enamelled Copper & Aluminium Winding Wires: Used in motors and transformers.
- Rectangular Wires (Paper Insulated): Essential for high-voltage equipment.
- Continuously Transposed Conductors (CTC): Specialized wires for large power transformers.
3. Financial Health: The Numbers That Matter
A company’s financials are the backbone of any IPO investment. KSH International has shown impressive growth over the last three fiscal years.
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,049.46 | 1,382.81 | 1,928.29 |
| Net Profit (₹ Cr) | 26.61 | 37.35 | 67.99 |
| EBITDA Margin | 4.75% | 5.17% | 6.35% |
| ROE (%) | 13.74% | 16.17% | 22.77% |
Analysis of Financials
- Revenue Growth: The company has nearly doubled its revenue in just two years, growing at a CAGR of roughly 35%.
- Profit Explosion: Net Profit (PAT) jumped significantly in FY25, rising by over 82% compared to FY24.
- Efficiency: The Return on Equity (ROE) of 22.77% in FY25 is healthy, indicating efficient use of shareholder capital.
4. KSH International IPO GMP (Grey Market Premium)
Current Status: As of December 15, 2025
- Current GMP: ₹0 to ₹5 (Flat)
- Estimated Listing Price: ₹384 - ₹389
- Expected Listing Gain: ~0% - 1.5%
Why is the GMP low?
Unlike some recent IPOs that saw massive hype, KSH International is a B2B manufacturing company. These "slow and steady" businesses often don't attract wild speculation in the grey market. The valuation (P/E ~38x) is considered "fair" but not cheap, leaving little room for immediate listing pops.
5. Review: Strengths vs. Risks
Should you apply? Let's weigh the pros and cons.
✅ Strengths (The Good)
- Market Leadership: Being the 3rd largest player and top exporter gives them a competitive moat.
- Sector Tailwinds: With India pushing for Green Energy and power infrastructure upgrades, demand for transformers (and thus KSH's wires) is skyrocketing.
- Institutional Interest: The "Malabar India Fund" participated in the pre-IPO placement, which is often a vote of confidence from smart money.
❌ Risks (The Bad)
- Client Concentration: The top 10 customers account for over 50% of revenue. Losing a key client like GE or BHEL could hurt bad.
- Raw Material Volatility: Their business depends heavily on Copper and Aluminium prices. Fluctuations can eat into their already thin margins (EBITDA ~6%).
- Debt: The company has total borrowings of over ₹360 Cr (FY25), though a portion of the IPO proceeds (₹226 Cr) will be used to repay this debt.
6. Conclusion: Final Verdict
KSH International is a solid company with strong fundamentals and a direct link to India’s infrastructure growth story. The financial growth in FY25 is commendable.
For Traders vs. Investors
- For High-Risk/Listing Gain Traders: You might want to wait and watch the subscription figures on Day 2. If QIBs (Qualified Institutional Buyers) flock in, the GMP might spike.
- For Long-Term Investors: If you believe in the power/energy theme, this company is a decent proxy play, but the valuation is fully priced.
Recommendation: Watch the subscription status closely on Dec 16th and 17th before placing your bid.