New Delhi, July 3 -- Chennai-based financial services firm Spark Capital and EAAA India Alternatives Ltd, the alternative asset management platform of the Edelweiss Group, appear set to clock a modest upside on an investment they made less than a year ago.
Spark Capital operates across four businesses, investment banking, alternative asset management, equity asset management and private wealth management. EAAA India Alternatives manages infrastructure assets such as highways, power transmission lines and renewable energy projects, besides commercial real assets.
Their portfolio company, Kusumgar Ltd, manufactures specialized technical textiles for sectors such as defence, aerospace and automotive. Founded in 1970, the Mumbai-based company makes fabrics used in parachutes, protective clothing, life jackets, life rafts, adventure equipment and other safety gear.
The company is now looking to raise up to Rs 650 crore ($68.2 million) through an initial public offering (IPO) comprising only an offer-for-sale by promoters, with no fresh issue component. The IPO has been priced in the Rs 398-419 per share band, valuing the company at Rs 4,195-4,416 crore.
Axis Capital, IIFL Capital Services and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, which opens on July 8 and closes on July 10.
Pre-IPO investment
In September 2025, Motilal Oswal Finvest Ltd, a wholly-owned subsidiary of Motilal Oswal Financial Services Ltd, invested around Rs 100 crore in Kusumgar, while Spark Capital invested Rs 60 crore and the Edelweiss fund invested Rs 75 crore through primary and secondary transactions. WhiteOak Capital put in around Rs 75 crore via several funds through primary and secondary transactions, while some other investors also pitched in.
Based on the IPO valuation, these investors are likely sitting on an unrealized return of around 15%, implying a multiple on invested capital (MOIC) of about 1.15x in less than a year. This translates into an estimated rupee internal rate of return (IRR) of roughly 18%.
EAAA India Alternatives, Spark Capital, and WhiteOak Capital did not respond to VCCircle's queries. Motilal Oswal refused to comment.
Financial performance
In FY26, Kusumgar's revenue fell 11% to Rs 692 crore, while profit after tax slipped 12% to Rs 98 crore, according to its red herring prospectus (RHP). As per the company, the decline in FY26 performance was due to delays in orders from the Indian Army and the impact of US tariffs.
"We expect business to resume its former growth trajectory. In 2026, the numbers were a one-off because of a couple of events," executive director and CEO Ankur Kothari said.
Kusumgar competes with listed companies such as Garware Technical Fibres Ltd and Arvind Ltd, which reported FY26 revenues of Rs 1,528 crore and Rs 9,303 crore, respectively.
Around 60% of Kusumgar's revenue comes from India, with customers including Decathlon India, while the remaining is generated from exports, primarily to the US and Europe.
Published by HT Digital Content Services with permission from VC Circle.