KSH International IPO: Should you apply?

Summary: KSH International, India’s third-largest producer of magnet winding wires, is set to go public on December 16, 2025. Should you subscribe to its IPO? We find out.

KSH International, a manufacturer of electrical wires and cables, will open its IPO (initial public offering) on December 16, 2025 and close on December 18, 2025. Of the total issue size of Rs 710 crore, Rs 420 crore comprises a fresh issue, while the remaining Rs 290 crore will be raised through an offer for sale (OFS).

Below is a breakdown of KSH International’s strengths, weaknesses, financials and past valuations to help you make an informed investment decision.

What the company does

KSH International is among India’s leading manufacturers of magnet winding wires, ranking third by production capacity and the largest exporter by revenues in FY25. Founded in 1981, the company has steadily expanded its product range to include specialised, customer-specific winding wires used in transformers, motors and generators. Its products are critical inputs across power, renewables, railways, automobiles and home appliances.

Sold under the ‘KSH’ brand, the company primarily serves OEMs (original equipment manufacturers) and counts many large domestic and global electrical equipment manufacturers among its customers. It is an approved supplier for high-voltage and extra-high-voltage applications, including HVDC transformers. With exports to 24 countries, KSH has built a strong global footprint in a high-entry-barrier industry.

Track record and valuation

KSH International’s financials demonstrate that the company has been on a strong footing. Between FY23 and FY25, the electric wires manufacturer posted a revenue growth of nearly 36 per cent every year, while net income (profit after tax) and EBIT (earnings before interest and tax) also posted double-digit growth of 60 per cent and 61 per cent, respectively. However, the company’s total debt also grew during the same period, at over 68 per cent annually.

At the upper end of the price band (Rs 384), KSH International’s stock is expected to be valued at over 38 times its FY25 earnings and 3.5 times its book value. In comparison, KSH International’s peers trade at a P/E and P/B of nearly 40 times and 6 times, respectively.

The good

Below are some of KSH International’s key strengths.

#1 Among the leading manufacturers of electric wires in India

KSH International operates a diversified product portfolio across multiple end-use industries, enabling cross-selling opportunities. Established in 1981 in Taloja, Maharashtra, the company began with magnet winding wires and has steadily expanded its capabilities over four decades. Today, it manufactures a wide range of standard and specialised magnet winding wires tailored to customer requirements. Its products are critical inputs for capital goods such as transformers, motors, alternators and generators. These, in turn, serve sectors including power, renewables, railways, data centres, automobiles and consumer appliances.

#2 Long-standing clientele

KSH International has built long-standing relationships with a diversified domestic and global customer base across sectors such as power, industrials, data centres, automobiles and consumer appliances. Its customer count has remained stable over recent years, with over 120 customers in each of the last three financial years and 93 invoiced in the June 2025 quarter. The company’s products are recognised by global industry leaders, reinforcing its reputation for quality and performance.

This credibility has helped KSH emerge as India’s largest exporter of magnet winding wires by revenue. Deep customer relationships, driven by customisation and consistent delivery, have supported repeat business, with over 94 per cent of FY25 revenue coming from existing customers.

The bad

Here are some of the risks faced by KSH International.

#1 Revenue concentrated among a handful of customers

KSH International derives a significant portion of its revenues from a relatively concentrated customer base. Its top 10 customers accounted for over 50 per cent of its core revenue between FY23 and FY25, as well as for the quarter ended June 2025. As a result, any reduction in demand, loss of key customers or delays in diversifying the customer base could adversely impact the company’s operations, financial performance and cash flows.

#2 Dependency on a single sector

KSH International’s revenues are heavily skewed towards the power sector, which accounted for over 70 per cent of its operating revenue during FY23-25 and the June 2025 quarter. This high dependence exposes the company to risks from economic cycles or demand slowdowns in power generation, transmission and distribution. Any sustained weakness in the power sector or related industries could adversely affect its operations, financial performance and overall financial position.

#3 Competition from domestic and global players

KSH International operates in a highly competitive magnet-winding wire industry, facing competition from large global and regional players, as well as a sizeable unorganised sector. Many competitors have broader product portfolios, stronger sales networks and greater resources, intensifying pricing pressure across the industry. The presence of low-cost, lightly regulated unorganised players often triggers price wars, weighing on margins. While the company continues to focus on cost efficiencies, new products and operational improvements, there is no assurance these efforts will fully offset competitive pressures. Thus, an inability to defend its competitive position or respond effectively to new entrants could materially impact KSH International’s business and financial performance.

Where will the IPO proceeds go?

Here is how KSH International plans to use the proceeds from its fresh issue of Rs 420 crore:

• Around Rs 226 crore will be utilised for the repayment or prepayment of the company’s borrowings
• Rs 87 crore has been earmarked for the purchase and set-up of new machinery at the company’s Supa Facility and Chakan, a city in Maharashtra’s Pune district
• Nearly Rs 8.9 crore will be used for funding the purchase of a rooftop solar power plant for power generation at KSH International’s Supa Facility

The remaining funds will be directed towards general corporate purposes.

So, should you subscribe to the KSH International IPO?

On paper, KSH International appears to check many of the right boxes, with solid financials, a strong position in electric wires and a well-established customer base. Even so, Value Research does not recommend investing in IPOs. History shows that many newly listed companies fade after the initial buzz and fail to deliver consistent returns over time. For investors with a long-term horizon, IPOs are rarely the most reliable path to wealth creation.

Instead, focus on proven businesses. With Value Research Stock Advisor, you get access to stocks that have endured multiple market cycles and compounded wealth steadily. We also help you build portfolios aligned to your goals and risk appetite, so you stay invested for the long haul rather than chasing short-lived listing gains.

Subscribe to Stock Advisor today

Also read: The great Indian IPO lottery