Magnet winding wire manufacturer KSH International has completed an INR 35 crore pre-IPO placement, demonstrating robust investor confidence ahead of its much-anticipated INR 745 crore IPO. KSH International pre IPO placement saw marquee participation from Malabar India Fund, alongside prominent individual investors such as Jabeen Ajay Menon, Ajay Menon, Sunil Nagayya Shetty, Salil Ajay Bhargava, and Rupal K. Sancheti.
Transaction Overview
According to filings, the company allotted 9.11 lakh equity shares through a private placement at INR 384 per share. The placement—executed in consultation with the IPO’s book-running lead managers, Nuvama Wealth Management and ICICI Securities—was finalised on 8 December 2025.
KSH International pre IPO round was led by Malabar India Fund, which acquired 8.51 lakh shares, translating to an investment of approximately INR 32.7 crore, or a 1.5% equity stake in the company. This purchase was structured via a secondary sale from promoters Rajesh Hegde and Rohit Hegde, who together divested 1.6% of the company’s pre-offer paid-up equity capital.
Post-transaction, the Hedge father-son duo’s holdings were reduced to 19.2% each from 20% previously, as reflected in share purchase agreements dated 5 December 2025.
KSH International Pre IPO Round: Investor Breakdown & Valuation
At an issue price of INR 384 per share, the company’s implied valuation stands at just over INR 2,600 crore. The placement reflects both institutional and high-net-worth investor confidence in the firm’s operational scale and upcoming public offering.
Beyond Malabar India Fund’s leading position, investor allocations included:
- Rupal K. Sancheti – 39,062 shares (~INR 1.5 crore)
- Salil Ajay Bhargava – 13,021 shares (~INR 50 lakh)
- Jabeen Ajay Menon, Ajay Menon, and Sunil Nagayya Shetty – collectively subscribed to smaller parcels aggregating the balance of shares.
KSH International IPO: Structure & Use of Funds
KSH International IPO, which has already received SEBI approval as of August 2025, comprises a fresh issue of INR 420 crore and an offer-for-sale (OFS) of INR 325 crore by members of the Hegde family, including Kushal Subbayya Hegde, Pushpa Kushal Hegde, Rajesh Kushal Hegde, and Rohit Kushal Hegde.
According to the Draft Red Herring Prospectus (DRHP) filed in May 2025, the company intends to allocate the fresh issue proceeds as follows:
- INR 226 crore towards debt repayment or prepayment;
- INR 90 crore for the purchase and installation of new machinery at its Supa and Chakan (Pune) facilities;
- INR 10.4 crore for setting up a rooftop solar power plant at the Supa facility; and
- The remaining amount for general corporate purposes.
Company Background & Market Position
Founded in 1981, KSH International is a Pune-based manufacturer specialising in magnet winding wires, critical components in electrical equipment such as transformers, alternators, and motors. The firm operates three facilities—two in Chakan, Pune, and one in Taloja, Raigad—with a combined annual installed capacity of 29,045 metric tonnes as of December 2024. A fourth plant at Supa, Ahilyanagar, is currently under development.
According to a CARE Ratings report, KSH International ranks as India’s third-largest magnet winding wire manufacturer by capacity and is expected to become the largest exporter in the segment by FY2025 export revenue. Its clientele includes industrial heavyweights such as Bharat Heavy Electricals, Siemens Energy India, Hitachi Energy India, Toshiba Transmission & Distribution Systems, and GE Vernova T&D India.
Industry Outlook & Strategic Positioning
The magnet winding wire industry serves as a backbone for capital goods sectors like power transmission, renewables, automotive (including EVs), industrial machinery, and railways. With India’s ongoing electrification and manufacturing expansion, the sector is positioned for sustained demand.
KSH International’s combination of product diversification, export penetration, and strategic capital expansion—including investment in energy efficiency via solar generation—aligns it with the government’s “Make in India” and sustainability objectives.
Verdict
KSH International pre IPO placement led by Malabar India Fund signals strong institutional validation of the company’s fundamentals and IPO prospects. The fund’s participation—known for backing high-quality, mid-market industrial and consumer businesses—suggests confidence in both earnings visibility and sectoral tailwinds.
With IPO proceeds earmarked for deleveraging and capacity expansion, KSH International enters the public market with a healthier balance sheet and clear growth trajectory. If the firm sustains its export momentum and margin improvement, it may emerge as one of India’s key publicly listed industrial manufacturing plays in 2026.
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