KSH International IPO opens Dec 16; key risks, strengths you must know

KSH International IPO will be offered at a price band of ₹365 to ₹384 per share and the lot size has been set at 39 shares

KSH International IPO: KSH International, a Magnet winding wires manufacturer, is set to launch its initial public offering (IPO) on Tuesday, December 16, 2025. The ₹710-crore public issue comprises a fresh issue of 10.9 million shares aggregating to ₹420 crore, and an offer for sale (OFS) with investors divesting up to 7.6 million shares worth ₹290 crore.

 

KSH International IPO will be offered at a price band of ₹365 to ₹384 per share. The minimum application size has been set at 39 shares per lot. The issue will remain open for subscription till Thursday, December 18, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Tuesday, December 23, 2025.

 

MUFG Intime India is the registrar for the issue. Nuvama Wealth Management and ICICI Securities are the book-running lead managers for the issue. 

 

According to the red herring prospectus (RHP), the company plans to utilise ₹225.98 crore from the net fresh issue proceeds for repayment or prepayment of certain outstanding borrowings. Additionally, ₹87 crore will be used for purchasing and setting up of new machinery for expansion at our Supa Facility, and Unit 2 in Chakan, Pune, Maharashtra.

Here are the key risks associated with investing in KSH International:

Reliance on key customers: According to the RHP, the company earns a significant portion of its revenue from a limited number of clients. Its top 10 customers accounted for 53.97 per cent, 52.54 per cent, 57.10 per cent, and 58.99 per cent of revenue from operations for the three-month period ended June 30, 2025 (Q2FY26), and for financial year 2025 (FY25), FY24, and FY23, respectively. The company said any reduction in demand from these clients, loss of such customers, or failure to diversify its customer base could adversely impact its business, financial performance, and cash flows. 

 

Supplier dependence: KSH International's top 10 suppliers contributed 98.91 per cent, 98.45 per cent, 96.93 per cent and 98.58 per cent of its total cost of raw materials and components purchased for the Q1FY26, FY25, FY24, and FY23, respectively. The company has not signed any long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have a negative impact on the business. 

 

Supply and cost pressures: According to the RHP, any shortage in the supply or availability of raw materials, including aluminium or copper, which are the company's primary raw materials, or insulating materials, such as enamel and paper, or an increase in our such material costs, or other input costs, can adversely affect the pricing and supply of its products.

 

Dependence on key products: The company derives a significant portion of its revenue, over 70 per cent for the Q1FY26, and FY25, FY24, and FY23, from sales of specialised magnet winding wires. Any decline in demand for these core products could materially impact its business, financial condition, operations, and cash flows.

 

Capex delays: The company has not yet placed orders for certain capital expenditures related to the proposed objects of the offer. Any delays in order placement or failure by vendors to deliver the required equipment on time could lead to cost and schedule overruns.

Here are the key strengths of KSH International:

Diversified product portfolio: According to the RHP, KSH International manufactures a wide range of products serving multiple end-use industries, enabling cross-selling opportunities. Its products, including transformers, motors, alternators, and generators, are critical components in sectors such as power generation, transmission and distribution, renewables, industrials, railways, data centres, automotive (EV and ICE), home appliances, and refrigeration and air conditioning.

 

Large, strategically located facilities: The company operates three manufacturing facilities in Maharashtra with a combined annual capacity of 29,045 MT and recently commenced Phase I of a fourth facility in Supa. Strategically located near Jawaharlal Nehru Port, these facilities support advanced technologies and help reduce logistics costs, as per the RHP.

 

Strong focus on product development: KSH International's product and process development team works closely with customer sourcing teams to define product attributes, select materials, and refine manufacturing processes with inputs from development engineers. The company's production-scale testing and inspection ensure high-quality outputs, including winding wires for 400KV, 765KV, and HVDC transformers.

 

Strong customer base: According to the RHP, the company serves a wide range of industries, including power, industrials, data centres, automotive, home appliances, and refrigeration and air conditioning. It has built long-standing relationships with both domestic and global customers, serving 122, 117, and 117 clients in FY25, FY24, and FY23, respectively, and 93 customers in Q2FY26.

 

Strong certifications and high entry barriers: KSH has received global certifications and approvals from leading domestic institutions. Its magnet winding wires are recognised by top industry players like Toshiba Transmission & Distribution Systems (India) and Meidensha Corporation. The firm noted that the industry has high barriers to entry due to strict pre-qualification requirements from corporate, government, and international buyers.