The Indian textile sector continues to remain in focus as companies expand capacity, integrate renewable energy, and improve operational efficiency. Now, Shree Ram Twistex Limited is entering the primary markets with its ₹110 crore IPO. But the big question investors are asking is — Shree Ram Twistex IPO: Subscribe or Not? Good or Bad for Investment? In this detailed IPO Review and Analysis, we will cover issue details, dates, GMP, financial performance, valuation comparison, strengths, risk factors, and whether you should invest or avoid.
Shree Ram Twistex IPO – Issue Details
| Particulars | Details |
|---|---|
| IPO Open Date | February 23, 2026 |
| IPO Close Date | February 25, 2026 |
| Listing Date | March 2, 2026 (Tentative) |
| Issue Size | ₹110.24 Crores |
| Issue Type | Book Built Issue |
| Fresh Issue | 1.06 Crore Shares |
| Price Band | ₹95 – ₹104 per share |
| Face Value | ₹10 per share |
| Lot Size | 144 Shares |
| Minimum Investment (Retail) | ₹14,976 (at upper band) |
| Listing At | BSE & NSE |
| Lead Manager | Interactive Financial Services Ltd |
| Registrar | Bigshare Services Pvt Ltd |
The issue is entirely a fresh issue. There is no Offer For Sale (OFS), which means proceeds will go to the company.
About Shree Ram Twistex Limited
Shree Ram Twistex Limited is engaged in manufacturing cotton yarn including Compact Ring Spun Yarn, Combed Yarn, Carded Yarn, Eli Twist Yarn, Compact Slub Yarn and Lycra Blended Yarn.
The company follows a B2B model supplying yarn to textile manufacturers, garment exporters and fabric processors. Its products are used in:
- Denim
- Terry Towels
- Shirting & Sheeting
- Sweaters & Socks
- Home Textiles
- Industrial Fabrics
The manufacturing facility is located in Gondal, Rajkot (Gujarat) with 27,744 spindles across 17 compact ring-spinning machines.
The company also has warehouse capacity of 9,855 MT.
Competitive Strengths
1️⃣ Fully Integrated Spinning Infrastructure
Modern compact spinning technology helps in producing value-added yarn with better margins.
2️⃣ Diversified Product Portfolio
Presence in combed, carded, compact and blended yarn reduces dependency on a single product line.
3️⃣ Strong Customer Relationships
Long-standing relationships across multiple states reduce customer concentration risk to some extent.
4️⃣ Renewable Energy Focus
Investment in solar and wind power plants for captive use may reduce long-term power cost volatility.
5️⃣ Experienced Promoters
Promoters have over a decade of experience in textile manufacturing.
Shree Ram Twistex IPO – Financials
(₹ Crores)
| Particulars | Sep 30, 2025 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Total Income | 132.27 | 256.32 | 231.72 | 213.58 |
| EBITDA | 17.04 | 21.85 | 20.19 | 17.40 |
| Profit After Tax | 7.00 | 8.00 | 6.55 | 2.05 |
| Net Worth | 80.70 | 74.03 | 66.80 | 61.11 |
| Total Borrowings | 60.70 | 62.48 | 67.04 | 55.70 |
Key Ratios
- ROCE: 10.74% (Sep 2025)
- RoNW: 9.05%
- EBITDA Margin: 12.90%
- PAT Margin: 5.30%
- Debt/Equity: 0.75
Financial Analysis
Revenue growth is steady but not aggressive. Profitability has improved significantly from FY23 to FY25. However, return ratios remain moderate for a textile company.
Debt levels are manageable but still meaningful. Post IPO, part of proceeds will reduce borrowings, improving leverage.
Objects of the IPO
| Purpose | Amount (₹ Cr) |
|---|---|
| Solar Power Plant (6.1 MW) | – |
| Wind Power Plant (4.2 MW) | 39.00 |
| Repayment of Borrowings | 14.89 |
| Working Capital | 44.00 |
| General Corporate Purpose | – |
| Total | 97.89 |
Major chunk is allocated toward working capital and renewable energy projects.
This indicates focus on cost efficiency and operational stability.
Valuation – P/E Comparison with Peers
At upper price band ₹104:
- Post IPO EPS: ₹3.50
- Post IPO P/E: 29.69x
- Price to Book: 4.13x
Peer Comparison (as per RHP)
- Highest P/E Peer – Damodar Industries Limited: ~14x
- Lowest P/E Peer – Rajapalayam Mills: Negative
- Industry Average: 3.4x
Shree Ram Twistex is priced very high above industry average and above industry peers too.
Shree Ram Twistex IPO GMP (Grey Market Premium)
As per market sources, GMP is currently in the range of ₹4–₹5.
This suggests a possible listing gain of around 4–5% if market conditions remain stable.
Investors should note GMP is speculative and can change rapidly.
Reasons to Invest in Shree Ram Twistex IPO
✅ 1. Improving Profitability Trend
PAT has grown from ₹2.05 Cr in FY23 to ₹8 Cr in FY25. Margin expansion is visible.
✅ 2. Renewable Energy Integration
Captive solar and wind plants may reduce long-term power costs — a major expense in spinning business.
✅ 3. Debt Reduction
Part IPO proceeds will reduce debt, improving balance sheet strength.
✅ 4. Diversified Yarn Portfolio
Value-added yarn products can command better pricing power.
Risk Factors
⚠️ 1. Cyclical Textile Industry
Textile demand is linked to global economic conditions. Slowdown in exports can impact revenue.
⚠️ 2. Raw Material Volatility
Cotton prices are volatile. Any spike without price pass-through can compress margins.
⚠️ 3. Moderate Return Ratios
ROCE and RoNW are below 15%, which indicates limited efficiency compared to top textile players.
⚠️ 4. Working Capital Intensive Business
Large working capital allocation suggests cash flow pressure.
⚠️ 5. Geographic Concentration
Manufacturing facility located in single region (Gujarat).
⚠️ 5. Higher Valuation Compared to High-P/E Peers
The IPO price is higher compared to industry average and compared to high p/e peers.
How to Apply for Shree Ram Twistex IPO
You can apply through:
- Zerodha
- Groww
- Upstox
- Angel One
- Net Banking ASBA
Steps:
- Login to your broker account.
- Select IPO section.
- Choose Shree Ram Twistex IPO.
- Enter lot quantity.
- Approve UPI mandate.
Should You Subscribe or Avoid?
Shree Ram Twistex IPO presents a moderate growth textile company with improving profitability and renewable energy integration plans.
However, valuation is slightly above industry average and return ratios are not very strong.
📌 Our View
- Short Term (Listing Gain): Neutral
- Long Term: Moderate Growth Story with Cyclical Risk
Conservative investors may apply for listing gains only.
Long-term investors should monitor textile cycle and margin sustainability.
Frequently Asked Questions (FAQs)
1. What is Shree Ram Twistex IPO price band?
₹95 to ₹104 per share.
2. What is the lot size?
144 shares.
3. When is the IPO listing date?
March 2, 2026 (tentative).
4. Is Shree Ram Twistex IPO good or bad?
Moderate risk IPO with reasonable valuation. Suitable for investors comfortable with textile sector cyclicality.
5. What is the GMP today?
Around ₹4–₹5 (subject to change).
6. Is there any Offer For Sale?
No, it is entirely a fresh issue.
7. Where will shares list?
On BSE and NSE.
Disclaimer
Investments in IPOs involve market risk. Investors should read the Red Herring Prospectus carefully before investing. The analysis above is for educational purposes and should not be considered as investment advice. Please consult your financial advisor before making any investment decision.
