KSH International IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is the the third largest manufacturer of magnet winding wires in India in terms of production capacity in Fiscal 2025.It is also the largest exporter of magnet winding wires from India in terms of export revenues in Fiscal 2025. Over the last four decades it has diversified its operations to include manufacturing various types of standard and specialized magnet winding wires which are tailored to customer specific requirements. Its key products include round enamelled copper/ aluminium magnet winding wires, paper insulted rectangular copper/ aluminium magnet winding wires, continuously transposed conductors, rectangular enamelled copper/ aluminum magnet winding wires and bunched paper insulated copper magnet winding wires. Its products are critical components of capital goods such as transformers, motors, alternators and generators. These products (transformers, motors, alternators and generators) find application in end-use industries such as power (generation, transmission and distribution), renewables, industrials, railways, automotives (EV and ICE), home appliances, refrigeration and air conditioning.

Its key customers are primarily OEMs, and include, Bharat Bijlee Limited, Virginia Transformer Corporation, Bharat Heavy Electricals Limited, Georgia Transformer Corporation, Hitachi Energy India Limited, Siemens Energy India Limited, GE Vernova T&D India Limited, Hind Rectifiers Limited, Transformers and Rectifiers India Limited, Indo-Tech Transformers Limited, TBEA, Atlanta Electricals Limited, Toshiba Transmission & Distribution Systems (India) Private Limited, Meidensha Corporation, SGB-SMIT GmbH and Retrasib S.R.L., CG Power and Industrial Solutions Limited, Nidec Industrial Automation India Private Limited, Al Ahleia Switchgear Co. , Emirates Transformer & Switchgear Limited. It has a significant global footprint and is exporting its products to 24 countries as of June 30, 2025, including, amongst others, USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh and Japan.

As of June 30, 2025, it operates three manufacturing facilities with a combined annual installed capacity of 29,045 MT. Two of these facilities are located in Chakan, Pune in Maharashtra and one in Taloja, Raigad in Maharashtra. Additionally, operations in its fourth facility in Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra, have commenced from September 2025.

IPO Details:

Objectives of Issue:

• Repayment of certain company borrowings
• Purchase and setup of new machinery at 2 plants
• Purchase and setup of a rooftop solar power plant for power generation at its Supa Facility
• General Corporate Purpose

Key Strengths:

1. Long standing relationships with its diversified customer base – The company has diversified customer base across various industries such as power (generation, transmission and distribution), industrials, data centers, automotives (EV and ICE), home appliances and refrigeration and air conditioning. Over the years, it has established long-standing relationships with several Indian and global customers. It has 122, 117 and 117 customers during the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Of its top 10 customers based on revenue contribution for the financial year ended March 31, 2025, five of its customers have been customers for 10 years intermittently, 2 of its customers have been customers for 5 years, and the other 3 have been its customers for 2 years. Further, 94.54% of its operating revenue in Fiscal 2025 was generated from repeat customers
2. Large, strategically located, manufacturing facilities with focus on advanced technologies – It is the third largest manufacturer of magnet winding wires in India in terms of production capacity in Fiscal 2025.Continuous efforts to expand its product portfolio enabled company to meet the evolving demands of industrial applications such as motors and air-conditioning compressors and the growing EV market via launch of enamelled round magnet winding wire. It leverages its deep expertise in wire drawing, wire shaping, annealing, and insulation to offer tailor-made solutions that align with the electrical, mechanical, and metallurgical requirements of various coil winding applications.Its manufacturing facilities adopt the latest technologies which have a high degree of automation, enabling it to efficiently produce a wide range of magnet winding wires at scale while dynamically adjusting production levels to meet projected demand.
3. Diversified Product Portfolio and Customer Base- It manufacture a diverse suite of products across various end-use industries, giving it an opportunity to cross sell its products.Its product find applications across key sectors such as end-use industries like power (generation, transmission and distribution), renewables, industrials, railways, data centers, automotives (EV and ICE), home appliances and refrigeration and air conditioning. Additionally company apart from supplying domestically caters to the global market as it contributes around 30% of the overall revenue of the company

Risks:

1. Significant Dependence on Power Sector – A significant portion of its revenue from operations i.e. 71.73%, 74.79%, 75.17% and 79.08% of its operating revenue for the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively is attributable to the power sector (generation, transmission and distribution) industry (“Power Sector”). Any economic cyclicality coupled with reduced demand or negative trend in the Power Sector industry or other industries that it operates in, could adversely affect its business, results of operations and financial condition.
2. Concentrated Manufacturing Risk- As of the date of this Red Herring Prospectus, it primarily manufacture its products at its four manufacturing facilities, one at Taloja (Raigad), Maharashtra, and two in Chakan (Pune), Maharashtra. Additionally, in order to address the rise in demand for magnet winding wires, it has established its fourth facility in Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra. Given the geographic concentration of its manufacturing operations in one state i.e. Maharashtra, its operations are susceptible to disruptions which may be caused by certain local and regional factors, including but not limited to political, economic and weather conditions, natural disasters, demographic factors, and other unforeseen events and circumstances.
3. Geopolitical Risk- It exports its products to various countries and its revenue from outside India represented 30.75%, 33.20%, 39.15% and 43.93% of its sale of products for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Its key export countries include USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh and Japan. Any change in law, regulations and policies in foreign jurisdictions where it sells its products or plan to sell its products may have an adverse impact on its business, financial condition, cash flows and results of operations. Like the United States have recently introduced tariff hikes on its imports from India. Any continuation of such high tariifs or extension of it could impact company exports.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company’s products are witnessing strong growth, driven by increasing demand from high-growth sectors such as consumer durables, data centres, electric vehicles, and renewable energy. In terms of financial performance, the company’s revenue growth outpaces the industry, and both its EBITDA and PAT margins are also higher than the industry averages. While the company’s ROE is superior to peers, its ROCE is slightly lower due to a relatively elevated debt level. The debt-to-equity ratio remains reasonable, though marginally above the industry average; however, this is offset by a stronger interest coverage ratio compared to peers. One area of concern is the company’s lower fixed-asset turnover ratio, which reflects relatively weaker asset efficiency.

From a valuation standpoint, the industry trades at approximately 37x earnings, whereas the company is currently valued at around 32x, making the stock appear reasonably priced. Considering the favourable industry outlook, solid fundamentals, and attractive valuation, the company presents a compelling long-term investment opportunity.