Aggressively Priced
KSH International Ltd., incorporated on 30th July 1979 as Bhandary Metal Extrusion Pvt. Ltd., is engaged in manufacturing magnet winding wires and conductors used in power, renewables, railways, automotive and other industrial applications. It operates three plants in Maharashtra with an installed capacity of 29,045 TPA and is doubling capacity by adding 30,000 TPA through its fourth plant at Supa. Phase I with 12,000 TPA was completed in September 2025 while Phase II with 18,000 TPA is expected to be completed in FY26-2027.
Financial performance:
The company has steadily improved its EBIDTA margin from 5.4% in FY23 to 6.9% in 2024–2025 and further to 7.9% for the three months ended 30th June 2025. It maintains around 40 days of inventory and collects receivables within 42 days. With a strong CAGR of 35.6% in revenue between FY23 and 2025, working capital requirements rose in absolute terms. To part-finance this higher requirement, borrowings increased sharply from Rs 120 crore to Rs 360 crore, tripling during the same period.
(Rs. in crore)
| Particulars | Jun-25 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) 2025 over 2023 |
| Number of months | 3 | 12 | 12 | 12 | – |
| Revenue from operations | 559 | 1,928 | 1,383 | 1,049 | 35.6% |
| Other income | 4 | 10 | 8 | 7 | 17.8% |
| EBIDTA | 44 | 132 | 79 | 57 | 52.4% |
| Interest | 7 | 28 | 18 | 13 | – |
| Depreciation | 3 | 14 | 11 | 8 | – |
| Profit after tax | 23 | 68 | 37 | 27 | 59.9% |
| Borrowings | 379 | 360 | 207 | 120 | – |
| EBIDTA Margin (%) | 7.9% | 6.9% | 5.7% | 5.4% | – |
| EPS (Rs) | 4.0 | 12.0 | 6.6 | 4.7 | – |
Objects of the issue:
Proceeds from the fresh issue include deploying Rs. 420 crore from the fresh issue of which Rs 96 crore is earmarked for the Supa plant expansion and Rs. 226 crore for prepayment or repayment of borrowings. The company has over Rs 250 crore of debt due by June 2026 and any delay or shortfall in IPO fund mobilisation could materially impact its financial position. Promoter holding will fall to 71.4% post-issue from 98.4% earlier.
| Particulars | KSH International |
| Name of the Company | KSH International |
| Issue Open | 16-12-2025 |
| Issue Closes | 18-12-2025 |
| Issue Size (Rs crore) | — |
| Fresh Offer (Rs crore) | 420 |
| Offer for Sale (Rs crore) | 290 |
| Face Value per share (Rs) | 5 |
| Upper Issue Price Band (Rs) | 384 |
Industry
As per the RHP, the Indian magnet winding wire market stands at around 3.43 lakh metric tons. Precision and Ram Ratna lead with market shares of over 14% each, followed by KSH International at 8.5%. Vidya Wires ranks fifth with around 5%. All leading manufacturers are expanding capacity to meet rising demand. Precision is adding 17,200 TPA to reach 65,400 TPA, Ram Ratna is setting up a 9,600 TPA facility and KSH’s capacity is expected to double to 59,500 TPA. These expansions are targeted for completion before March 2027.
Peer comparison
The RHP identifies eight peer companies in this segment, including two unlisted players. Among the core competitors—Ram Ratna Wires, Precision Wires and Vidya Wires—KSH demonstrates superior profitability. Its EBIDTA margin of 6.9% and net margin of 3.5% exceed those of the market leaders.
Exports form 30% of KSH’s revenue, significantly higher than the 12% share for Precision and Ram Ratna. More than 50% of its revenue is derived from the top ten customers including Bharat Bijlee, CG Power and Industrial Solutions, Automation India, Transformers & Rectifiers (India) and key overseas clients.
| Particulars | KSH International | Precision Wires | Ram Ratna Wires | Vidya Wires |
| Total income (Rs crore) | 1,928 | 4,015 | 3,677 | 1,186 |
| EBIDTA margin (%) | 6.9% | 4.1% | 4.2% | 3.8% |
| Net margin (%) | 3.5% | 2.2% | 1.9% | 2.2% |
| Earnings Per Share (Rs) | 12.0 | 6 | 13 | 3 |
| Market Share (%) as on 31-03-2025 | 8.5% | 14.3% | 14.2% | 5.7% |
| Face Value (Rs) | 5 | 1 | 5 | 1 |
| Price/Earnings (P/E) Ratio | 32 | 38 | 46 | 20 |
| Current Market Price (Rs) | 384 | 235 | 614 | 52 |
KSH is offering shares at a P/E ratio of thirty-two times as compared to thirty-eight times for Precision and forty-six times for Ram Ratna. Vidya Wires, which recently got listed, is quoting at its offer price of Rs 52. The offer would have looked more attractive at a lower price band. Investors will also keep in mind the dull listing of Vidya Wires.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends or relatives may or may not participate in the IPO. This article is intended purely for educational purposes. Investors are advised to consult their financial advisors before making any investment decisions. The grey market premium should be viewed only as an indicator and not as a reliable benchmark for listing performance.
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