Is KSH International IPO Good or Bad – Detailed Review

KSH International Limited’s IPO is set to open its initial public offering from December 16, 2025, to December 18, 2025. When considering applying for this IPO, potential investors might have questions about whether the KSH International IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive KSH International IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision. 

KSH International IPO Review

KSH International Limited’s IPO is open for subscription from December 16, 2025, to December 18, 2025, with listing expected on December 23, 2025, on NSE and BSE.

The company operates as a prominent player in the Indian manufacturing and electrical components sector, operating as the third-largest manufacturer of magnet winding wires in India and the largest exporter in this segment. Its core business involves the manufacture and supply of high-strength, insulated, industrial-grade magnet winding wires and continuously transposed conductors (CTC).

The products are essential components used in transformers, motors, alternators, and generators. A key revenue driver is its market leadership and specialized products, as it is the Largest Exporter of magnet winding wires from India (33.20% of sales in FY25) and supplies specialized products like CTC, an approved supplier to major entities including PGCIL, NTPC, NPCIL, and RDSO.

Industries catered to include Power (Generation, T&D), Renewables, Automotive (EV and ICE), and Railways. The Promoters' pre-issue shareholding was 98.40%. The company operates within the rapidly accelerating Indian Electric Wires and Cables Industry, with the Indian Magnet Winding Wires Market valued at USD 4.39 billion in CY24.

The business environment is driven by the demand for magnet winding wires, a critical component for electrical equipment. Key market drivers include the massive expansion and modernization of India’s Power Transmission & Distribution (T&D) network, significant Government Initiatives (National Infrastructure Pipeline, PM Gati Shakti), and the EV Revolution, with the Indian EV market forecasted to grow at a CAGR of 66.58% from 2022 to 2029.

KSH International's financial performance shows strong, accelerating growth and improving operational efficiency:

• Revenue from Operations grew by 39.45% YoY to Rs 1,928.29 crore in FY25, with a 3-year CAGR of 35.55% (FY23–FY25).

• EBITDA grew by 71% YoY to Rs 122.53 crore in FY25, with the EBITDA Margin steadily improving from 4.75% in FY23 to 6.35% in FY25.

• Profit After Tax (PAT) grew by 82% YoY to Rs 67.99 crore in FY25.

• Return on Equity (RoE) has continuously improved, reaching 22.77% in FY25, demonstrating superior performance compared to its listed peers.

Strengths include its Market Leadership in Key Segments (3rd largest manufacturer, largest exporter), Comprehensive Product Portfolio (including specialized CTC), High Barriers to Entry and Quality Approvals, Strong Financial Performance (high CAGR in Revenue, EBITDA, and PAT), and Strategically Located and Advanced Facilities.

Risks include Dependence on Key Customers (Top 10 contributed 52.54% of FY25 Revenue), Reliance on Key Suppliers and Raw Material Price Volatility (Top 10 suppliers accounted for 98.45% of raw material costs), Exposure to Power Sector Cyclicality (74.79% of FY25 Revenue from the power sector), and Over-reliance on Specialised Magnet Winding Wires.

The Rs 710 crore IPO comprises a Fresh Issue of Rs 420 crore and an Offer for Sale (OFS) of Rs 290 crore. The proceeds from the fresh issue will be primarily used for prepayment or repayment of outstanding borrowings (Rs 225.97 crore) and funding Capital Expenditure (Capex) for expansion at the Supa Facility.

The shares are priced in the band of Rs 365 to Rs 384 per share, with a lot size of 39 shares.

Company Overview of KSH International IPO

KSH International Limited is a prominent player in the Indian manufacturing and electrical components sector, operating as the third-largest manufacturer of magnet winding wires in India and the largest exporter in this segment. Incorporated in 1979, the Company has an operational history of over four decades. KSH International is part of the KSH group, a diversified business conglomerate with presence in logistics, infrastructure, services, and distribution.

Core Business & Market Position

The Company's primary business involves the manufacture and supply of high-strength, insulated, industrial-grade magnet winding wires and continuously transposed conductors (CTC).

Core Products

The product portfolio includes both standard and specialised magnet winding wires, which are essential components used in transformers, motors, alternators, and generators:

• Round enamelled copper or aluminium magnet winding wires.

• Paper-insulated rectangular copper or aluminium magnet winding wires.

• Continuously Transposed Conductors (CTC).

• Rectangular enamelled copper or aluminium magnet winding wires.

• Bunched paper-insulated copper magnet winding wires.

Industries they cater to

KSH International supplies its products to Original Equipment Manufacturers (OEMs) across critical end-use sectors:

• Power - Generation, Transmission and Distribution.

• Renewables.

• Automotive, including Electric Vehicles (EV) and Internal Combustion Engine (ICE) components.

• Railways.

• Industrial Equipment, Home Appliances, Refrigeration, and Air Conditioning.

Market Credibility and Global Reach

• Key Approvals: KSH is an approved supplier to major public and private entities for critical components like insulated rectangular wires and CTC, including PGCIL, NTPC, NPCIL, and RDSO.

• Export Footprint: The company exports to 24 countries as of June 30, 2025. Exports accounted for 33.20% of sales in FY25.

Promoters and Leadership

The company’s promoters are Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde, Rohit Kushal Hegde, Rakhi Girija Shetty, Dhaulagiri Family Trust, Everest Family Trust, Makalu Family Trust, Broad Family Trust, Annapurna Family Trust, Kanchenjunga Family Trust and Waterloo Industrial Park VI Private Limited. The Promoters' pre-issue shareholding was 98.40%.

The management includes Kushal Subbayya Hegde - Chairman and Executive Director, Rajesh Kushal Hegde - Managing Director, Rohit Kushal Hegde - Joint Managing Director, Rakhi Girija Shetty - Whole-time Director, Sandesh Bhagwat - Chief Executive Officer (CEO), Amod Joshi - Chief Financial Officer (CFO), Sarthak Malvadkar - Company Secretary and Compliance Officer.

Industry Overview of KSH International IPO

KSH International Limited operates within the Indian Electric Wires and Cables Industry, with a structural backdrop of accelerating power, infrastructure, and electric vehicle (EV) development. The Company's business environment is deeply rooted in the demand for magnet winding wires (MWW), which are critical components for motors, transformers, generators, and other electrical equipment.

Market Potential

Key Market Driving Factors

• Infrastructure and Power Sector Growth: The primary demand driver is the massive expansion and modernization of India’s power infrastructure, as winding wires are essential for transformers and motors in transmission and distribution.

• T&D Network Expansion: The Power Transmission & Distribution (T&D) sector is a crucial end-user. India plans to increase its transmission line network from 4.85 lakh cKm in 2024 to 6.48 lakh cKm by 2032.

• Government Initiatives: Government spending on infrastructure, including the National Infrastructure Pipeline, PM Gati Shakti, and increased budgetary allocation for railways (Rs 2.52 lakh crore for FY26, directly propels demand for electrical equipment and winding wires.

• EV Revolution: The automotive sector's transition, driven by the FAME II scheme and PLI schemes, significantly increases the need for high-performance winding wires for motors in EVs. The Indian EV market is forecasted to grow at a CAGR of 66.58% from 2022 to 2029.

• Export Incentives: Government schemes like Remission of Duties and Taxes on Exported Products (RoDTEP), Advance Authorization Scheme (AAS), and Export Promotion Capital Goods (EPCG) enhance the global competitiveness of Indian magnet winding wire exporters.

Market Challenges

The industry faces significant challenges, including the volatility of raw material prices like copper and aluminium, high capital investment requirements for specialized machinery, and intense competition from domestic and unorganized sectors.

Financial Overview of KSH International IPO

Note: The Return on Equity, Return on Capital Employed, and Net Debt to Equity are not annualised for the three months ended June 30, 2025.

Revenue from Operations has shown strong, accelerating growth. Revenue increased by approximately 31.76% from Rs 1,049.46 crore in FY23 to Rs 1,382.82 crore in FY24. This growth accelerated significantly to Rs 1,928.29 crore in FY25, representing a 39.45% YoY growth, driven by both increasing metal prices and volume growth. The 3-year CAGR for the period of FY23 to FY25 stands at 35.55%.

EBITDA has grown consistently and strongly. EBITDA increased from Rs 49.90 crore in FY23 to Rs 71.46 crore in FY24, and significantly to Rs 122.53 crore in FY25, marking a 71% YoY growth. The EBITDA CAGR for FY23 to FY25 is 56.70%.

EBITDA Margin reflects improving operational efficiency and scale benefits. The margin has steadily increased from 4.75% in FY23 to 5.17% in FY24, reaching 6.35% in FY25. The margin for the three months ended June 30, 2025, further improved to 7.21%.

Profit After Tax (PAT) has shown robust, accelerating growth. PAT grew from Rs 26.61 crore in FY23 to Rs 37.35 crore in FY24, a 40% YoY growth, and significantly increased to Rs 67.98 crore in FY25, marking an 82% YoY growth. The PAT for the three months ended June 30, 2025, was Rs 22.68 crore.

PAT Margin has also steadily improved, from 2.52% in FY23 to 2.69% in FY24, and reaching 3.51% in FY25. The margin for the three months ended June 30, 2025, was 4.03%.

Return on Equity (RoE) demonstrates efficient use of shareholder capital, having consistently improved from 13.74% in FY23 to 16.17% in FY24, and then improved in FY25, reaching 22.77%. Return on Capital Employed (RoCE) highlights good capital efficiency, showing a steady improvement from 13.25% in FY23 to 14.15% in FY24, and reaching 16.60% in FY25.

Net Debt to Equity ratio reflects moderate and increasing leverage, standing at 1.17x as of March 31, 2025, up from 0.59x in FY23. The IPO funds are strategically earmarked for debt repayment (Rs 225.97 crore), which is expected to reduce the net debt-to-equity ratio post-IPO.

Strengths and Risks of KSH International IPO

Let's examine the strengths and weaknesses to determine if KSH International IPO is a good or bad investment for investors.

Strengths

• Market Leadership in Key Segments: KSH International is the third largest manufacturer of magnet winding wires in India in terms of production capacity as of FY25. The company is also the largest exporter of magnet winding wires from India in terms of export revenues in FY25.

• Comprehensive Product Portfolio: The company manufactures a diverse suite of products, including specialized magnet winding wires such as Continuously Transposed Conductors (CTC) and Paper Insulated Rectangular Copper or Aluminium Magnet Winding Wires, enabling it to cross-sell across different customer needs.

• High Barriers to Entry and Quality Approvals: The industry presents significant barriers to entry due to stringent pre-qualification requirements imposed by corporate, state, central government, and international organizations. KSH is an approved supplier to key domestic entities, including PGCIL, NTPC, NPCIL, and RDSO.

• Strong Financial Performance and Operational Efficiency: The company has a consistent track record of strong performance, with Revenue, EBITDA, and PAT posting a CAGR of 35.55%, 56.70%, and 59.83%, respectively, from FY23 to FY25. It achieved a high Return on Equity (ROE) of 22.77% in FY25.

• Strategically Located and Advanced Facilities: The company operates large manufacturing facilities located strategically near ports in Maharashtra (Taloja and Chakan). These facilities utilize advanced automation and precision engineering, positioning KSH as a preferred player in advanced winding wire solutions.

Risks

• Dependence on Key Customers: The top 10 customers contributed 52.54% of the company's revenue from operations for FY25, posing a risk if demand from these customers decreases or is lost.

• Reliance on Key Suppliers and Raw Material Price Volatility: The business is highly dependent on a limited number of suppliers, with the top 10 suppliers accounting for 98.45% of total raw material costs in FY25. Prices of primary raw materials like copper and aluminium are subject to global fluctuations, which can impact profitability.

• Exposure to Power Sector Cyclicality: A significant portion of revenue (74.79% in FY25) is derived from the power sector, like generation, transmission, and distribution. Any downturn or reduced demand in this sector could adversely affect the business.

• Over-reliance on Specialized Magnet Winding Wires: The company derives a substantial portion of its revenue, which is over 70% in FY23, FY24, and FY25, and 71.73% for the three months ended June 30, 2025, from the sale of specialized magnet winding wires. Any significant structural change, technological shift, or reduction in demand for this single product category, like substitution trends or market saturation, could have a material adverse effect on the company's business, results of operations, and cash flows.

• Project Implementation Risks: The company has ongoing capital expenditure plans, including the expansion of the Supa Facility, and any delays or cost overruns in implementing these projects could adversely affect business and financial condition.

Strategies of KSH International IPO

• Increase Focus on Higher Value-Added Products: The core strategy is to increase the focus on critical, high-margin products like CTC for ultra-high voltage applications like 765 kV and HVDC transformers and specialized wires for the growing EV and BLDC motor segments to improve the margin profile.

• Expand Global Reach and International Markets: The company plans to leverage its position as the largest exporter to expand its global footprint, seeking customer approvals from new international agencies and strengthening its presence in existing markets like the USA, UAE, and Germany.

• Increase Manufacturing Capabilities and Backward Integration: KSH is focused on increasing capacity, notably through the Supa Facility expansion, to meet rising demand. A key initiative is pursuing backward integration by setting up in-house upcast copper rod manufacturing to mitigate price volatility and enhance cost efficiency.

• Improve Operational Efficiencies and Sustainability: The company aims to optimize operations through achieving economies of scale and actively reducing power costs by investing in captive renewable energy, including installing a 3.2 MW rooftop solar power plant at the Supa Facility.

• Deepen Customer Relationships: The strategy includes increasing the wallet share of existing customers by engaging in cross-selling across different product categories and collaborating on new product requirements to strengthen loyalty and revenue visibility.

KSH International IPO vs. Peers

KSH International Limited reported Revenue from Operations of Rs 1,928.29 crore in FY25. This positions the company as a key player in the magnet winding wires segment, ranking third by capacity. However, the company operates at a different scale compared to its largest listed peers in terms of total revenue.

While KSH is smaller in scale, its capacity utilization rate of 81% in FY25 is competitive with its peers. The company reported a significant year-on-year Revenue growth of 39.45% in FY25, substantially higher than Precision Wires India (21.60%) and Ram Ratna Wires (23.24%).

In terms of core operating profitability, the company's EBITDA Margin for FY25 stood at 6.35%. KSH International's EBITDA Margin of 6.35% is superior to both Precision Wires (4.13%) and Ram Ratna Wires (4.22%). This margin superiority flows directly to the bottom line, with KSH's PAT Margin of 3.51% being higher than its listed competitors.

The company exhibits a superior performance in shareholder returns, reflected by a Return on Net Equity (RoE) of 22.77% in Fiscal 2025. This surpasses the RoE of its peer group, which ranges from 14.39% (Ram Ratna Wires) to 15.63% (Precision Wires).

However, KSH carries a higher Net Debt to Equity ratio of 1.17 compared to its peers, Precision Wires with 0.04 and Ram Ratna Wires with 0.56. This leverage is partly associated with significant capital expenditure for its ongoing capacity expansion. The company is addressing this by allocating Rs 225.97 crore from the fresh issue proceeds toward debt repayment.

Objectives of KSH International IPO

The IPO consists of a total of 1,84,89,583 shares aggregating to Rs 710 crore. This includes a fresh issue of 1,09,37,500 shares worth Rs 420 crore, while the remaining 75,52,083 shares, valued at Rs 290 crore, are offered through an offer for sale.

Proceeds from the OFS portion will go to the selling shareholders, Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde, and Rohit Kushal Hegde.

The funds raised through the fresh issue will be used for the following objectives:

1. Prepayment or repayment, full or in part, of certain outstanding borrowings availed by the company (Rs 225.97 crore)

2. Funding Capital Expenditure (Capex)

• Purchasing and setting up new machinery for expansion at the Supa Facility (Rs 87.01 crore)

• Purchasing and setting up new machinery at Unit 2, Chakan, Pune (Rs 8.82 crore)

3. General Corporate Purpose (Rs 31.8 crore)

KSH International IPO Details

IPO Dates

The KSH International IPO date window for subscription opens on December 16, 2025, and closes on December 18, 2025. The allotment of shares to investors will take place on December 19, 2025, and the company is expected to be listed on the NSE and BSE on December 23, 2025.

IPO Issue Price

The KSH International IPO share price is set in the price band of Rs 365 to Rs 384 per share. This means you would require an investment of Rs. 14,976 per lot (39 shares) if you are bidding for the IPO at the upper price band.

IPO Size

KSH International is coming up with an issue of 1,84,89,583 shares worth Rs 710 crore, comprising a fresh issue of 1,09,37,500 shares aggregating Rs 420 crore to fund the company’s stated objectives, and an offer for sale of 75,52,083 shares valued at Rs 290 crore, the proceeds of which will go to the selling shareholder in the IPO.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on December 19, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of KSH International are expected to be listed on the NSE and BSE on December 23, 2025.

IPO Application Link

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