Opportunity to earn ₹5,810 by investing ₹14,665! Kusumgar’s IPO is opening on 8th July

Consumer IPO: A great opportunity is knocking at the door for investors looking to earn profits by investing in the stock market. The initial public offering (IPO) of ‘Kusumgar’, a giant company manufacturing engineered fabric, is going to open from July 8. According to the estimates of Gray Market, by investing Rs 14,665, you can earn up to Rs 5,810.

IPO will open on July 8

This IPO of Kusumgar will open for subscription on Monday, July 8 and investors will be able to place their bids for it till July 10. Investors who apply within this stipulated period will be allotted shares on July 13. As per the standard procedure of the stock market, the money of those who will not be allotted shares will be refunded to their bank accounts on July 14. At the same time, shares will be credited to the demat account of successful investors on the same day. Finally, on July 15, the company’s shares will be officially listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) platforms.

Promoters are selling their stake

Before investing money in any company, it is very important to understand where the money raised will be used. This Rs 650 crore issue of Kusumgar is completely ‘Offer for Sale’ (OFS). This simply means that the company is not raising any new funds or capital through this IPO. In this, the existing promoters of the company are selling their stake in the market. The entire amount received from the IPO will go directly to the promoters selling shares and will not be used for internal development work of the company.

The complete mathematics of betting in the gray market

Now let’s talk about your profits. The company has fixed the price band of Rs 398 to Rs 419 per share for this issue. 35 shares are kept in one lot. This means that a retail investor will have to invest Rs 14,665 for at least one lot. You can bid up to Rs 1,90,645 for a maximum of 13 lots (455 shares). Expectations of profit are high because till 5 pm on July 7, Kusumgar’s shares were trading at a huge premium (GMP) of Rs 166 in the gray market.

If this trend continues till the day of listing, then according to the upper price band (Rs 419), the share can enter the market with a premium of about 39.62 percent. According to this mathematics, an investor can make a direct profit of Rs 5,810 on one lot. However, it is important to keep in mind that GMP is only a temporary indicator and may change at any time with market fluctuations.

In which field does the company work?

Kusumgar mainly deals in manufacturing high quality ‘engineered fabrics’. The company’s products fall in the category of woven, coated and laminated synthetic fabrics. The company has a strong and diverse customer base, covering several important industry sectors such as aerospace, defence, automobile, industrial, outdoor and lifestyle.