Key Takeaways

• KSH International is a leading manufacturer and exporter of magnet winding wires with strong exposure to EVs and power infrastructure
• FY25 ROE of 22.77 percent and improving margins highlight efficient operations
• IPO valuation is reasonable but not cheap due to relatively higher leverage
• Suitable for long-term investors rather than aggressive listing gains seekers

Understanding KSH International’s Business Model

KSH International is engaged in the manufacturing and export of magnet winding wires, a critical component used in motors, transformers, generators and other electrical equipment. These products play a vital role in sectors such as power transmission, renewable energy, electric vehicles, railways, industrial machinery and automotive applications.

The company offers a wide range of products including enamelled copper and aluminium winding wires, paper insulated rectangular wires, continuously transposed conductors and specialised insulated conductors. These products are supplied to large original equipment manufacturers across India and overseas markets.

What makes KSH International relevant in today’s market environment is its direct linkage to India’s long-term infrastructure story. With rising investments in power generation, EV manufacturing and renewable energy, demand for efficient and reliable magnet winding wires is expected to remain strong.

Manufacturing Strength and Industry Position

KSH International operates three manufacturing facilities in Maharashtra located at Taloja and Chakan, with a total installed capacity of 29,045 metric tonnes per annum. A fourth manufacturing facility at Supa in Ahilyanagar is under development and expected to commence operations in FY26, further strengthening capacity.

As per industry data, the company ranks as India’s third-largest manufacturer and the largest exporter of magnet winding wires in FY25. Its strong export presence provides diversification and reduces dependence on a single geography.

The company has also received quality and supplier excellence awards from reputed clients such as Toshiba T&D India, GE Power Grid and BHEL, reinforcing its credibility in a highly technical manufacturing segment.

Financial Performance and Growth Trends

KSH International has demonstrated consistent financial improvement over the last three years. Total income increased from ₹1,056.60 crore in FY23 to ₹1,938.19 crore in FY25, reflecting strong demand across end-use industries.

Profitability has improved steadily, with net profit rising from ₹26.61 crore in FY23 to ₹67.99 crore in FY25. EBITDA margins expanded from 4.72 percent to 6.32 percent during the same period, indicating better operating efficiency and cost control.

Return on equity for FY25 stands at a healthy 22.77 percent, which is higher than many listed peers in the magnet wire segment. This reflects effective capital utilisation and disciplined execution by the management.

IPO Details You Should Know

The KSH International IPO is a book-built issue with a price band of ₹365 to ₹384 per share. The issue opens for subscription on December 16, 2025 and closes on December 18, 2025. The shares are proposed to be listed on both BSE and NSE.

The total issue size is ₹2,601.82 crore, consisting of a fresh issue of ₹710 crore and an offer for sale of ₹1,891.82 crore. The face value of each share is ₹5 and the market lot is 39 shares.

Post issue, the company’s market capitalisation is estimated at approximately ₹2,602 crore at the upper price band.

Use of IPO Proceeds and Strategic Focus

The company plans to utilise fresh issue proceeds primarily for repayment of certain borrowings, purchase and installation of new machinery at two manufacturing plants, and setting up a rooftop solar power plant at its Supa facility.

These initiatives are expected to support capacity expansion, improve energy efficiency and reduce power costs over the long term. Investment in renewable energy also aligns with sustainability goals and may provide cost advantages as electricity prices remain volatile.

Valuation and Market Comparison

At the upper price band, KSH International is valued at a pre-IPO P/E of around 32 times FY25 earnings. Compared with listed peers such as Precision Wires India and Ram Ratna Wires, the valuation appears reasonable but not deeply discounted.

While KSH International offers superior ROE and strong growth visibility, its debt levels are relatively higher than some peers. This may limit near-term re-rating potential, especially for investors focused on short-term listing gains.

From a long-term perspective, the valuation reflects the company’s growth prospects, export leadership and exposure to high-growth sectors like EVs and renewables.

Key Risks Investors Should Consider

The company derives a significant portion of its revenue from a limited number of large customers, which could impact earnings if client concentration increases. Raw material price volatility, particularly in copper and aluminium, can also affect margins.

Manufacturing operations involve operational risks such as equipment failure and force majeure events. Additionally, differences in accounting standards across jurisdictions may impact financial interpretation for some investors.

Should You Apply for KSH International IPO

For listing gains seekers, the IPO may offer limited upside due to fair valuation and higher leverage compared to peers. However, for long-term investors, KSH International presents a strong structural growth story driven by electrification, EV adoption and infrastructure spending in India.

Investors with a long-term horizon and moderate risk appetite may consider the IPO as part of a diversified portfolio, keeping expectations realistic in the short term.

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Frequently Asked Questions

What does KSH International do?
KSH International manufactures magnet winding wires used in motors, transformers, EVs and power equipment.

Is KSH International profitable?
Yes, the company reported a net profit of ₹67.99 crore in FY25 with an ROE of 22.77 percent.

What is the IPO price band?
The IPO price band is ₹365 to ₹384 per share.

Is the IPO good for listing gains?
Listing gains may be moderate as the valuation is fair but not cheap.

Is it suitable for long-term investors?
Yes, long-term investors may find value due to strong industry tailwinds and expansion plans.

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