KSH International IPO Review: Business, Numbers, Risks and What to Watch

KSH International makes magnet winding wires, the insulated copper and aluminium “muscles” that sit inside transformers, motors, and generators to create magnetic force so these machines work. The IPO opens on December 16 and closes on December 18, 2025, with a ₹365-₹384 price band and a lot size of 39 shares; the GMP is around ₹0 right now, which is an unofficial indicator and can change quickly with market mood. Readers will find a simple breakup of the business model, what the IPO money will fund, key strengths and risks, peer comparisons, valuation, financial trends, selling shareholders, and more.​

IPO Overview

• IPO Date: December 16 to December 18, 2025
• Total Issue Size: ₹710 crore
• Price Band: ₹365 to ₹384
• Minimum Investment: ₹14,976
• Lot Size: 39 Shares
• Tentative Allotment Date: December 19, 2025
• Listing Date: December 23, 2025 (Tentative)
• GMP: The GMP for the KSH International IPO is ₹0, reflecting a 0% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How KSH International Makes Money

• KSH International makes insulated winding wires for heavy-duty use: round enamelled wires, paper-insulated wires, and CTC (many small insulated strands braided for big transformers). These go into power equipment, railways, EV motors, and industrial machines. KSH is India’s third-largest by capacity and the largest exporter from India.​
• It has primarily two ways to earn: “full package” sales (KSH buys metal, makes wire, and sells the finished product) and “job work” (customer sends metal; KSH processes it and charges processing fees). This keeps orders flowing even when customers want to control raw material costs.​
• The company’s operations run across Maharashtra facilities with 29,045 MT installed capacity, a 22-member sales team, exports to 24 countries, and approvals from power sector bodies for sensitive high-voltage use, this helps with steady orders. Capacity addition of ~30,000 MT is planned over the next two years.​
• It plans to start making upcast copper rods in-house (backward integration: doing more steps of the supply chain internally) to recycle scrap, source cathodes directly, and lower material cost volatility, improving supply reliability.​

Objectives of the IPO

• Cut debt to lower interest burden: ₹225.98 crore to repay loans (about 43.5% of borrowings as of Oct 31, 2025). Lower debt means less interest outflow and more room for growth.​
• Add capacity and machines: ₹87.02 crore capex to expand the Supa facility (Phase II) by 18,000 MT and upgrade wire-flattening lines at Chakan Unit 2 for better throughput and quality.​
• Reduce power costs: ₹8.83 crore for a 3.2 MW rooftop solar plant at Supa for captive use, which can trim electricity bills and improve margins over time.​
• General corporate purposes: Balance funds for growth initiatives and day-to-day requirements.​

Strengths:

• Scale and exports: Third-largest in India and largest exporter; FY25 exports were about a third of sales, giving a second growth engine beyond India. A broader customer base helps reduce single-country risk.​
• Faster growth and better margins: Revenue ~₹1,938 crore in FY25; PAT ₹68 crore; EBITDA margin ~6.35% vs peers ~4-4.3%. Higher margins mean for every ₹100 of sales, KSH keeps more as operating profit than rivals.​
• Strong customer stickiness: 94%+ of FY25 revenue from repeat buyers, which suggests steady quality and delivery performance and lowers demand uncertainty.​

Risks:

• Working capital stretch: Working capital cycle at ~80 days vs peers at ~18-25 days; more cash stays tied in inventory and dues, which can strain cash flows during fast growth.​
• Raw material concentration: Top 10 suppliers form ~98% of raw material costs; copper/aluminium price swings can squeeze margins if pass-through lags.​
• Client concentration and sector tilt: Top 10 customers ~53% of revenue; power sector ~75% of sales. If a few clients or the power capex cycle slows, sales can dip quickly.​

For detailed information, visit KSH International’s official IPO page at INDmoney.

Peer Comparison

Here is a competitive analysis of the company versus its listed peers, Precision Wires India, Ram Ratna Wires, and Vidya Wires:

Source: RHP, internal calculation

• Scale and profitability: KSH FY25 revenue ₹1,928 crore vs Precision Wires ₹4,015 crore and Ram Ratna ₹3,677 crore, but KSH shows higher EBITDA margin at 6.35% vs ~4.1-4.3% for peers, so it keeps ₹6.35 as operating profit for every ₹100 in sales versus peers keeping about ₹4-₹4.3.​
• P/E and ROE: On an annualized basis (Q1 FY26), KSH’s P/E around 28.7 compares with Precision Wires 50.6, Ram Ratna 40.4, and Vidya Wires 26.7; ROE 22.77% shows it makes ₹22.8 profit for every ₹100 of shareholder equity, higher than many peers.​
• Capacity and efficiency: Installed capacity 29,045 MT is smaller than top two peers, which means headroom to scale; fixed asset turnover trails Precision but beats Ram Ratna, pointing to moderate asset efficiency.​

IPO Valuation

At ₹384, the issue implies 32x pre-IPO P/E; post new shares, ~38x; annualized Q1 FY26 suggests ~28.7x, which means investors pay ₹28.7-₹38 for every ₹1 of profit, depending on the lens. This sits below or near peers (Precision 50.6x; Ram Ratna 40.4x; Vidya Wires 26.7x), indicating reasonable to slightly discounted pricing relative to growth and margin profile.​

Net debt of can reduce meaningfully as fresh proceeds go toward repayments, lowering interest costs and lifting earnings quality. ROE near 22.8% signals efficient profit generation versus many rivals, which supports the case for a fair entry valuation.

Who’s Making Money from the IPO?

The IPO includes a ₹290 crore Offer for Sale by promoters, Kushal S. Hegde, Pushpa K. Hegde, Rajesh K. Hegde, and Rohit K. Hegde, who are partially monetizing long-held stakes. OFS proceeds go to sellers, not the company; returns are very high due to historical low acquisition costs, and long holding periods make simple IRR less meaningful.​

Analyst View

This offer blends growth capital with some promoter selling. The anchor book drew interest from institutions, which often signals confidence, but the broad analyst stance is cautious-to-neutral, preferring to watch post-listing delivery before strong calls. Short-term listing pop looks muted with a flat GMP, so the story leans long term.​

For patient investors, the thesis hangs on electrification and exports. If capacity ramps on time, copper-rod backward integration lands well, and debt comes down as planned, margin stability can improve. Watch working capital discipline and client/supplier concentration, those two levers can swing cash flows and valuations.​

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: KSH International's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.