KSH International
- KSH International is coming out with a 100% book building; initial public offering (IPO) of 1,94,52,054 shares of Rs 5 each in a price band Rs 365-384 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on December 16, 2025 and will close on December 18, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 5 and is priced 73.00 times of its face value on the lower side and 76.80 times on the higher side.
- Book running lead managers to the issue Nuvama Wealth Management and ICICI Securities.
- Compliance Officer for the issue is Sarthak Malvadkar.
Profile of the company
KSH International is the third largest manufacturer of magnet winding wires in India in terms of production capacity in Fiscal 2025. The company is also the largest exporter of magnet winding wires from India in terms of export revenues in Fiscal 2025. It commenced its operations in 1981 by manufacturing magnet winding wires in Taloja, Raigad, in Maharashtra. 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.
The company’s 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.
The company is an approved supplier of insulated rectangular wires and CTC for certain entities, used in High Voltage Direct Current (HVDC), 765 kV extra high voltage (EHV) transformers and reactors. The magnet winding wire industry presents significant barriers to entry, primarily due to stringent pre-qualification requirements imposed by corporate, state, central government, and international organizations during their procurement processes. Further, 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.
Proceed is being used for:
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
- Funding the capital expenditure requirements of the company towards: (i) purchasing and setting up of new machinery for expansion at its Supa Facility (Phase II Expansion at its Supa Facility); and (ii) purchasing and setting up of new machinery at Unit 2 in Chakan, Pune in Maharashtra
- Funding the capital expenditure requirements of the company towards purchasing and setting up of a rooftop solar power plant for power generation at its Supa Facility
- General corporate purposes
Industry Overview
The magnet winding wires industry in India has demonstrated robust growth, driven by its critical role in powering various end use industries such as power transmission and distribution, electrical equipment, and appliances, automotive, telecommunications and industrial machinery. The Indian magnet winding wire market was valued at $4.39 billion in CY24, growing from $3.53 billion in CY19, with a CAGR of 4.46%. By volume, the winding wire market grew at a CAGR of 3.03% from CY19 to CY24 reaching volume of 569.02 thousand tonnes in CY24. This growth was largely fueled by infrastructure development, rising electrification across sectors, and the rapid adoption of renewable energy solutions. Additionally, government initiatives such as Make in India, Atmanirbhar Bharat and sector-specific policies further boosted demand across multiple applications.
Looking forward, magnet winding wire market in India is expected to reach $5.28 billion by CY28, growing at a CAGR of 4.78% from CY24 to CY28. By volume, the market is expected to grow at a CAGR of 4.71% from CY24-CY28 reaching volume of 684.13 thousand tonnes in CY28. This growth will be fueled by the country's efforts to enhance power transmission capacity, investments in grid modernization, increasing adoption of electric vehicles (EVs), and the rising demand for energyefficient appliances. The power transmission and distribution sector will be a major growth driver, with India aiming to expand its transmission line network from 4.85 lakh cKm in 2024 to 6.48 lakh cKm by 2032, alongside a transformation capacity increase to 2.38 million MVA by the same year. These developments will significantly boost the consumption of winding wires, which are essential components in these applications.
Additionally, the electrical equipment and appliance sector, driven by the expanding middle class, urbanization, and growing consumer electronics penetration, will further accelerate demand for winding wires. The renewable energy sector will also play a critical role, as India strives to achieve its ambitious target of 500 GW of renewable energy capacity by 2030, increasing the demand for winding wires in solar and wind energy installations. The automotive sector, particularly the shift towards EVs, will contribute significantly to winding wire consumption. The Indian EV market is forecasted to grow from $3.20 billion in 2022 to $113.90 billion by 2029, with a remarkable CAGR of 66.58%, offering substantial opportunities for the winding wire industry. Furthermore, the expansion of telecom infrastructure, advancements in industrial automation, and increased investments in metro and railway infrastructure are expected to boost growth in the winding wires market.
Pros and strengths
Diversified product portfolio: The company manufactures a diverse suite of products across various end-use industries, giving it an opportunity to cross sell its products. The company commenced its operations in 1981 by manufacturing magnets winding wire in Taloja, Raigad, in Maharashtra. Over the last four decades, the company has diversified its operations to include manufacturing various types of standard and specialized magnet winding wires which are tailored to customer specific requirements.
Large, strategically located manufacturing facilities: The company is the third largest manufacturer of magnet winding wires in India in terms of production capacity in Fiscal 2025. As of June 30, 2025, the company 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 is located in Taloja, Raigad in Maharashtra. Additionally, Phase I of a fourth facility in Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra has commenced operations in September 2025. Its facilities are strategically located closer to the Jawaharlal Nehru Port in Navi Mumbai, Maharashtra. The company’s closer proximity to the port enables it to achieve cost efficiencies and reduce logistics costs.
Focused on new product/ processing development: The company’s new product/ process development and maintenance team, comprising product managers, product strategists, and subject matter experts, works in close collaboration with the strategic sourcing teams of its customers. Through this collaborative process, it defines critical product attributes, select specific materials, and fine-tune manufacturing processes with inputs from its development engineers. Through production-scale manufacturing, it ensures testing and inspection at multiple stages of its manufacturing process to meet customer demands precisely. In the past, it has also engaged consultants who were able to provide it with technical expertise.
Automation and precision engineering at the core of its product offering: The company’s 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. The company’s expertise in ultra-precision manufacturing positions it as a preferred player in providing advanced winding wire solutions for large and HVDC transformers. These transformers require compact designs with micron-level accuracy and exceptional winding stress tolerance to reduce transmission and distribution losses. Its wire flattening machines produce rectangular copper strips with micron-level geometric tolerances, while its advanced enamelling application processes achieve precise coatings for rectangular wires. Additionally, its transposing heads enable maximum winding flexibility in CTC. These innovations allow it to deliver good-quality, high-performance products tailored to the demanding requirements of the transformer industry.
Risks and concerns
Customer concentration may impact revenue stability: The company is dependent on certain customers for a significant portion of its revenue from operations. The company’s top 10 customers contributed to 53.97%, 52.54%, 57.10% and 58.99% of its revenue from operations for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Any decrease in demand from such customers, the loss of such customers or its inability to diversify its customer base could have an adverse effect on its business, results of operations, financial condition and cash flows.
Supplier dependency may impact operational stability: The company’s business is dependent on suppliers to procure its raw materials (top 10 suppliers contributed to 98.91%, 98.45%, 96.93% and 98.58% of its total cost of raw materials and components purchased for the three-month period ended June 30, 2025, and Fiscals 2025, 2024, and 2023, respectively). It has not entered into long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition, cash flows and results of operations.
Revenue vulnerability due to power sector dependence: A significant portion of the company’s 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.
Risks arising from overseas market exposure: The company 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. Any adverse events affecting these countries or changes in laws and duties in relation to exports could have an adverse impact on its business, revenue operations, financial condition and cash flows.
Outlook
KSH International is the third-largest manufacturer and the largest exporter of magnet winding wires in India. It operates under the ‘KSH’ brand and supplies to OEMs across sectors like power, renewables, railways, automotive, and industrials. It is one of the leading manufacturers of magnet winding wires in India, with a comprehensive suite of products used across multiple end-use industries. On the concern side, the company is dependent on certain customers for a significant portion of its revenue from operations. Moreover, the company’s business is dependent on limited suppliers to procure its raw materials. Any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition, cash flows and results of operations.
The issue has been offering 1,94,52,054 in a price band of Rs 365-384 per equity share. The aggregate size of the offer is around Rs 710.00 crore to Rs 746.96 crore based on lower and upper price band respectively. Minimum application is to be made for 39 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 39.45% to Rs 19,282.93 million for Fiscal 2025 from Rs 13,828.15 million for Fiscal 2024 primarily on account of the increase in volume and metal prices in Fiscal 2025. Moreover, the company’s profit for the year increased by 82.03% to Rs 679.88 million for Fiscal 2025 from Rs 373.50 million for Fiscal 2024.
The company aims to invest in advanced machinery and process improvements toward the manufacture of higher value-added products such as CTC, which are critical for ultra-high voltage applications including 765 kV systems, HVDC power transformers, and railway traction transformers. These applications demand ultra-precision manufacturing and stringent quality standards, which the company is equipped to meet through its upgraded infrastructure and technical expertise. It also aims to place a strong emphasis on premium market segments. Within the transformer sector, it is focused on the large and HVDC segments, which require highly specialized magnet winding wires and conductors. In the motor segment, it aims to concentrate on the EV, AC and BLDC motor categories, all of which are experiencing growing demand for high performance magnet wire solutions. To support this strategic focus, its new product and process development efforts are increasingly aligned with future-facing, high-growth industries such as electric mobility. It intends to utilise an increased proportion of capacity from its new manufacturing facility at Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra.
