KSH International IPO: Sparking Investor Frenzy in the Magnet Wire Maze – Is This ₹710 Cr Power Play a Current-Carrying Winner?
In a nation racing to electrify everything from EVs zipping down highways to wind turbines slicing through monsoons, one unassuming wire could hold the key to the next industrial jolt. Enter KSH International – the Maharashtra-based wizard of magnet winding wires that’s about to go public with a ₹710 crore IPO. But here’s the high-voltage question buzzing through Dalal Street: At a price band of ₹365-₹384, is this a live wire for your portfolio, or a short-circuit waiting to happen?
KSH International IPO: Key Details at a Glance
| Parameter | Details |
|---|---|
| Company | KSH International Limited (Manufacturer of magnet winding wires) |
| Issue Size | ₹710 crore |
| Issue Type | Book-built (Fresh Issue + Offer for Sale) |
| Fresh Issue | ₹420 crore (approx. 10.94 million shares) |
| Offer for Sale (OFS) | ₹290 crore (approx. 7.55 million shares by promoters) |
| Price Band | ₹365 – ₹384 per share |
| Face Value | ₹5 per share |
| Lot Size | 39 shares |
| Minimum Investment (Retail) | ₹14,976 (1 lot at upper band) |
| Maximum Lots (Retail) | 13 lots (507 shares, ₹194,688) |
| Investor Categories | Retail: 35%, HNI/NII: 15%, QIB: 50% |
| IPO Open Date | December 16, 2025 |
| IPO Close Date | December 18, 2025 |
| Anchor Booking | December 15, 2025 |
| Basis of Allotment | December 19, 2025 |
| Refunds Initiation | December 22, 2025 |
| Credit to Demat | December 22, 2025 |
| Listing Date | December 23, 2025 (Tentative) |
| Listing Exchanges | BSE and NSE |
As India’s wires and cables market swells from $19.68 billion in CY24 to a projected $29.85 billion by CY28 (CAGR 6.08%), and the EV sector explodes from $3.2 billion in 2022 to $113.9 billion by 2029 (CAGR ~66.6%), KSH isn’t just riding the surge – it’s coiled to lead it. Founded in 1981, this Taloja, Raigad powerhouse churns out enamelled copper and aluminium magnet wires for transformers, motors, and EV components, exporting to 24 countries and claiming the crown as India’s top exporter by revenue in FY25 (per CARE Ratings). With clients spanning 122 accounts – from power giants to renewable pioneers – KSH’s story isn’t just wired for growth; it’s fused to the future.
Yet, as the IPO bell rings open on December 16 (closing December 18, listing December 23 on BSE/NSE), investors must decode the fine print: blistering financials masking a debt dragon, a frothy valuation, and tailwinds that could turbocharge returns. Drawing from the red herring prospectus and analyst dissections, this bottom-up probe – starting from sector sparks and scaling to shareholder sizzle – unravels whether you should bid or bail.
The Sector Socket: Why Magnet Wires Are the Unsung Heroes of Electrification
Peel back the layers, and magnet winding wires aren’t glamorous – they’re the insulated copper/aluminium lifelines pulsing electricity through transformers (75% of KSH’s FY25 revenue), EV motors, and industrial pumps. But in a ‘China+1’ world, where global supply chains reroute amid geopolitical static, India’s magnet wire exports are magnetizing multinationals. KSH’s Supa facility (Phase 1 operational, Phase 2 ramping) targets premium segments like EV/AC/BLDC motors, where margins gleam at 8-10% versus the industry’s 5-7%.
The kicker? Utilization at KSH’s three plants hit 85% in FY25, with a fourth in the works. Backed by a 35%+ revenue CAGR over three years, this isn’t a fad – it’s a fundamental shift, propelled by PLI schemes, green energy mandates, and a domestic content push eyeing $10 billion in wire exports by 2030.
Financial Flash: From Steady Current to Surge Protector
KSH’s books tell a tale of disciplined expansion: revenue rocketed 84% from FY23 to FY25, PAT more than doubled, and EBITDA margins widened from 4.75% to 6.35%. But zoom in – Q1FY26 annualized revenue hints at ₹2,250 crore, a 17% pop from FY25, with PAT margins hitting 4.03%. The secret sauce? A diversified client mix (power 75%, industrials 15%, renewables/EVs 10%) and export heft (30% of sales).
Yet, the voltmeter flickers on debt: Borrowings ballooned to ₹360 crore in FY25 (from ₹120 crore in FY23), inflating finance costs to ₹28 crore and pushing net debt/EBITDA to a eyebrow-raising 9.27x. IPO proceeds (₹420 crore fresh issue) will douse ₹226 crore of that fire, shrinking the ratio to ~3x post-IPO – a breath of fresh air for cash flows.
Here’s the fiscal fuse box, laid bare:
| Key Metric (₹ Cr) | FY23 | FY24 | FY25 | Q1FY26 (Actual) | 3-Yr CAGR | Notes |
|---|---|---|---|---|---|---|
| Revenue | 1,049.46 | 1,382.82 | 1,928.29 | 562.60 | 35.6% | 39% YoY jump in FY25; exports up 45% |
| EBITDA | 49.90 | 71.46 | 122.53 | 40.28 | 56.8% | Margins expanded 4.75% → 6.35%; Q1 at 7.21% |
| PAT | 26.61 | 37.35 | 67.99 | 22.68 | 59.8% | 82% YoY FY25 surge; ROE hit 22.77% |
| Total Borrowings | 120.35 | 206.81 | 360.05 | 379.39 | 73.5% | To shrink post-IPO; interest coverage ~4.4x |
| Net Worth | 193.66 | 230.95 | 298.55 | 321.47 | 24.2% | Assets up 54% to ₹745 Cr; RoCE 16.6% |
| EPS (Basic, ₹) | 5.04 | 7.07 | 12.86 | 4.29 (annualized) | – | Post-IPO FY25: ₹10.03 |
Source: RHP; figures consolidated. CAGR calculated bottom-up from FY23 base.
The numbers scream efficiency: Asset turnover climbed to 2.6x in FY25, and working capital days shaved to 45 from 60. But that debt spike? It’s the ghost in the machine – funding capex for Supa (₹95 crore from IPO earmarked) amid raw material volatility (copper prices swung 15% in FY25).
Valuation Volt: Fairly Charged or Overloaded?
At ₹384 (upper band), KSH’s post-issue market cap clocks ₹2,602 crore – a 38.3x P/E on FY25 EPS of ₹10.03 and 20.7x EV/EBITDA. Peers like Precision Wires (P/E 45x) and LS Cables (25x) trade at premiums, but KSH’s export edge and margin trajectory (projected 8% EBITDA by FY27) justify the wattage. Arihant Capital pegs it “neutral” for listing pops, while Angel One urges “subscribe” for 3-5 year holds, forecasting 25% EPS CAGR.
Grey market premium? Muted at ₹10-15 (2-4% over band) as of December 15 – no fireworks yet, but subscription could sizzle with QRI anchors like Malabar India Fund already plugged in via ₹35 crore pre-IPO.
Risks: The Potential Blackout
No circuit is flawless. Copper price spikes could erode 2-3% margins; 30% export reliance exposes to forex flux (rupee dipped 5% vs. USD in FY25). Promoter stake dips from 98% to 71% post-OFS (₹290 crore by the Hegde family), signalling confidence – or cash-out? And that debt overhang: Even post-repayment, ₹134 crore lingers, with capex delays at Supa a wildcard.
Investor Verdict: Bid with Eyes Wide Open – A Long-Term Live Wire
From this analyst’s oscilloscope, KSH International isn’t a quick-flip gamble; it’s a strategic stake in India’s $100 billion+ electrification odyssey. Bottom-line: Subscribe for long-term portfolios if you’re wired for growth stocks – the 35%+ revenue trajectory, debt deleveraging, and EV/renewables tailwinds could deliver 20-25% annualized returns by FY28. But at 38x P/E, it’s no bargain basement; high-debt aversion? Sit this one out.
Will KSH light up your returns, or fizzle? The market’s verdict drops on December 23
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