KSH International Ltd

KSH International IPO 

KSH International Limited is a manufacturer of magnet winding wires and conductors used in electrical equipment such as transformers, motors, alternators and generators. The company’s portfolio spans both standard and specialised winding wire products, including round enamelled copper/aluminium wires, paper-insulated rectangular copper/aluminium conductors and continuously transposed conductors (CTC), which are typically used in higher-spec transformer applications.

The Company is the third-largest manufacturer of magnet winding wires in India by production capacity in Fiscal 2025 and the largest exporter of magnet winding wires from India by export revenues in Fiscal 2025. It supplies a diversified base of OEM and institutional customers across end-markets such as power generation/transmission/distribution, renewables, railways, industrials, automotive and consumer appliances, supported by product qualifications/approvals for select applications from institutions such as PGCIL, NTPC, NPCIL and RDSO.

DRHP Filled - 22 May 2025 

RHP Filled - 10 December 2025 

BLRM - Nuvama , ICICI Securities 

Auditor : Kirtane & Pandit LLP, Chartered Accountants

Disclaimer - Delta Partners (public market division under Dexter Capital) is not a SEBI registered Investment Advisor and this report does not constitute a recommendation but is only prepared for educational purposes. We (our team members including our directors) may or may not apply to IPO. 

This note is not reviewed by our CIO - Devendra Agrawal, CFA. It is prepared by our team of Investment Analysts, and is reviewed by our senior team members. Any questions related to the IPO can be directed to shubham@deltainvest.in and we will come back. 

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Delta’s View: KSH is a good company with higher margins than its peers ( 6% EBITDA margins vs the peer average of 4%). It is the largest exporter of magnet winding wires from India, with exports to 24 countries. However, the IPO ask valuation of 1.4x P/S is on a higher side compared to peers trading at 0.6 - 0.8 P/S and doesn’t give much comfort. One can look at the company after a few quarters, once debt repayment( 226 Cr ) is completed and the planned capex goes live.

The overall sector has been growing at double-digit rates as demand for electrification is rising, and KSH has been a beneficiary of this wave. The company has grown sales at ~30% CAGR over the last three years. The IPO proceeds will be utilized to reduce the company’s overall debt, which should lead to PBT margin improvement, and to add capacity, which will act as a further growth driver for the company.

Grey Market Premium (GMP) data for KSH International was unavailable as of 17 December 2025, making it difficult to assess potential listing gains.

• In FY25, the Company’s revenue is concentrated among large B2B customers, with ~53% of revenues contributed by the top 10 customers, including Bharat Bijlee, Nidec Industrial Automation India Pvt. Ltd., Transformers & Rectifiers Ltd., among others, five of the top 10 customers have been associated for around 10 years, two for about five years, and three for roughly two years

• As of FY24, the Company’s market share stood at ~14% versus peers in the similar segment. In FY25, it was the third largest player by production volume, with ~8.5% share of the total volume in the Magnet Winding Wires industry.

• The Company is currently operating at ~80% capacity utilisation, broadly in line with peers in this space. Using IPO proceeds, it plans to undertake capex to nearly double capacity from 29,045 MT to 59,045 MT by Q4 FY27.
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• The Company is the largest exporter of magnet wires from India. Exports contribute ~33% of current revenues, which is the highest export share among peers. Its international customers include Al-Ahleia Switchgear Co., Emirates Transformer & Switchgear Ltd., Georgia Transformer Corporation, and Virginia Transformer Corporation, among others. 

• The Company has a wide geographic footprint and, as of June 30, 2025, served customers across 24 countries, including the USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh, and Japan, among others.

Issue Details 

• Fresh Issue - 420 Cr

- Repayment of Borrowings ~ 226 Crore 

- Capex Machinery for Expansion ~ 90 Cr 

- Capex Rooftop Plant at the new facility ~ 10 Cr

- General Corporate Purposes - Rest 

• Offer for Sale - 290 Cr 

- Selling Shareholders 

1. Kushal Subbayya Hegde ~ 153 Cr 
2. Pushpa Kushal Hegde ~ 42 Cr 
3. Rajesh Kushal Hegde ~ 47 Cr 
4. Rohit Kushal Hegde ~ 47 Cr 

Business Overview

The Company is the third-largest manufacturer of magnet winding wires in India by production capacity in Fiscal 2025 and the largest exporter of magnet winding wires from India by export revenues in Fiscal 2025. It commenced operations in 1981 with its first manufacturing facility at Taloja, Raigad (Maharashtra) and, over the last four decades, has diversified into a wide range of standard and specialised magnet winding wires, including products tailored to customer-specific requirements. Its key product portfolio includes round enamelled copper and aluminium magnet winding wires, paper-insulated rectangular copper and aluminium magnet winding wires, continuously transposed conductors (CTC), rectangular enamelled copper and aluminium magnet winding wires, and bunched paper-insulated copper magnet winding wires.

The Company’s products are critical components used in capital goods such as transformers, motors, alternators, and generators, which in turn cater to end-use industries including power (generation, transmission, and distribution), renewables, industrials, railways, automotive (EV and ICE), home appliances, refrigeration, and air conditioning. The Company markets and sells its products under the brand name “KSH”.

Its customer base is primarily OEM-led and includes leading domestic and global companies such as Bharat Bijlee Limited, Bharat Heavy Electricals Limited, Hitachi Energy India Limited, Siemens Energy India Limited, GE Vernova T&D India Limited, CG Power and Industrial Solutions Limited, Transformers and Rectifiers India Limited, Indo-Tech Transformers Limited, Toshiba Transmission & Distribution Systems (India) Private Limited, Nidec Industrial Automation India Private Limited, Virginia Transformer Corporation, Georgia Transformer Corporation, Meidensha Corporation, SGB-SMIT GmbH, Retrasib S.R.L., Al Ahleia Switchgear Co., and Emirates Transformer & Switchgear Limited, among others.

The Company is also an approved supplier of insulated rectangular wires and CTC for select applications used in HVDC systems, 765 kV EHV transformers, and reactors. The magnet winding wire industry has high barriers to entry, primarily due to stringent pre-qualification requirements across corporate, government, and international procurement processes. The Company’s products have been approved for use by key institutions, including PGCIL (for PICC and CTC conductors for HVDC converter transformers and for transformers and reactors up to the 765 kV class), NTPC (for CTC), NPCIL (for CTC up to the 220 kV class power transformers), and RDSO (for CTC conductors used in three-phase drive locomotive transformers).

Product Portfolio 

Promoters and Leadership 

Kushal Subbayya Hegde is the founder and Promoter of KSH International and serves as the Chairman and Executive Director. He is 87 years old and holds a Bachelor’s degree in Arts from Bombay University. He has been associated with the Company since incorporation and has 45+ years of experience. 

Rajesh Kushal Hegde is a Promoter and the Managing Director of the Company. He is 55 years old and holds a B.S. in Mechanical Engineering (Michigan Technological University, USA) and a Master’s in Manufacturing Systems Engineering (Oklahoma State University, USA). He has been associated with the Company since 1996 and has 28+ years of experience in this Space.

Rohit Kushal Hegde is a Promoter and the Joint Managing Director of the Company. He is 51 years old and holds a B.Com (Symbiosis College of Arts and Commerce), an MBA (Sheffield Hallam University, England), and an Executive Master in Change (INSEAD). He has been associated with the Company since 2000 and has 24+ years. 

Sandesh Bhagwat is the Chief Executive Officer and has been associated with the Company since January 3, 2023. He holds an Engineering degree (Vivekanand Education Society’s Institute of Technology) and an MBA (NMIMS), and has previously worked with Toyo Engineering, Tyco Electronics, Ingersoll Rand, LAPP India, and Leoni Cable Solutions.

Amod Joshi is the Chief Financial Officer and has been associated with the Company since August 16, 2017. He holds a B.Com (University of Pune), is a Chartered Accountant (ICAI), has completed a Senior Management Program (IIM Ahmedabad), and holds a Diploma in IFRS (ACCA, UK); he has prior experience with S.R. Batliboi & Co and BSR & Co.

Related Party Transactions 

• The company operates through more than 18 group entities across various businesses and in similar sectors

• In FY23, an amount of ₹10 crore was transferred to KSH Infra Park 4 Private Limited, a promoter group entity, under the heading “Deposit Paid”.

Shareholding Pattern 

• Malabar India Fund Limited owns approximately 1.5% of the Company’s equity prior to the Offer. Malabar’s stake was acquired through secondary share purchases from promoters in December 2025, at a price of ₹384 per share. ( 32.7 Cr ) 

Financial Snapshot

Industry & Competition 

* The PE multiple for KSH International is based on pre-IPO earnings; however, the forward multiple could be lower, after planned debt repayment ( 226 Cr ) using IPO proceeds.