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Shree Ram Twistex IPO Day 1: Shree Ram Twistex IPO opens on Monday, February 23, and closes on Wednesday, February 25. This offering consists entirely of a fresh issue of 1.06 crore shares, with a price band set between ₹95 and ₹104 per share. Shree Ram Twistex IPO GMP is ₹5.

At the upper price point, the IPO firmly establishes the company’s pre-issue market capitalisation at ₹416 crore. Allotment of shares is expected on February 26, with a robust listing scheduled for March 2 on both BSE and NSE.

Investors are required to bid for a minimum of 144 shares, equating to an investment of ₹14,976 at the upper price band. The structure of the issue ensures that at least 75% is reserved for qualified institutional buyers, up to 15% for non-institutional investors, and a solid 10% for retail investors.

Shree Ram Twistex is a leading manufacturer of high-quality cotton yarns, including compact ring spun and carded yarns in both combed and carded varieties. These products are crucial in knitting and weaving applications, from denim and terry towels to shirting, sheeting, sweaters, socks, bottom wear, and home textiles.

Additionally, the company excels in producing value-added yarns, such as Eli Twist, compact slub yarns, and lycra-blended yarns. Operating on a B2B model, Shree Ram Twistex efficiently supplies textile manufacturers, garment exporters, bulk buyers, and fabric processors across various states, including Gujarat, Rajasthan, Maharashtra, Tamil Nadu, and West Bengal, while also making significant strides in exports.

(Stay tuned for more updates)

Shree Ram Twistex IPO Day 1: The company's listed peers are Ambika Cotton Mills Limited, Damodar Industries Limited, and Rajapalayam Mills Limited.

Shree Ram Twistex IPO Day 1: The company's profit stood at ₹2.05 crore in FY23, which rose to ₹6.55 crore in FY24 and to ₹8 crore in FY25.

Revenue from operations for FY23 was ₹213.10 crore, which climbed to ₹231.59 crore in FY24 and to ₹255.04 crore in FY25.

Shree Ram Twistex IPO Day 1: check out the following

Shree Ram Twistex IPO Day 1: They are as follows;

Shree Ram Twistex IPO Day 1: The company has established long-standing relationships with institutional customers such as Welspun Living Limited, Jindal Worldwide Limited, and other bulk purchasers. It procures its principal raw material, cotton bales, through brokers from ginning mills and traders across key cotton-producing states, including Gujarat, Maharashtra, Haryana, and Madhya Pradesh.

Shree Ram Twistex serves both domestic and international markets, with exports routed through merchant exporters and domestic sales conducted through direct institutional sales and a network of brokers and agents.

Shree Ram Twistex IPO Day 1: Keys risks to consider

High customer concentration risk: The company derives a major part of its revenue from a limited number of customers, and the loss of any of these customers or a reduction in revenue from them could have a material adverse effect on its business, financial condition, results of operations, and cash flows. According to the RHP, the top 10 customers accounted for 90% of total revenue during the nine-month period ended December 31, 2024.

Geographic concentration in Gujarat: In addition, the company’s large customers are primarily located in Gujarat, leaving it exposed to geographic concentration risk. During the nine-month period ended December 31, 2024, revenue from sales in Gujarat amounted to ₹13,834.64 lakhs, representing approximately 91.73% of total revenue from operations.

Shree Ram Twistex IPO Day 1: Key strengths

Shree Ram Twistex IPO Day 1: As per the Red Herring Prospectus (RHP), the company manufactures cotton yarns, including compact ring spun and carded yarns, both combed and carded.

"Our yarns are used in both knitting and weaving, serving a broad range of end-use segments such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. We operate exclusively in the business-to-business (B2B) segment. Our manufacturing facility in Gondal, Rajkot, Gujarat, houses 17 compact ring-spinning machines with a total spindle count of 27,744," reads the RHP.

Shree Ram Twistex IPO Day 1: Master Capital Services, said - "In this expanding industry landscape, Shree Ram Twistex operates as a manufacturer of cotton yarns, catering to a wide range of textile applications. With its presence in the B2B segment, established customer relationships, and strategically located manufacturing facility, the company is positioned to benefit from rising demand for cotton-based products, growth in domestic consumption, and expanding export opportunities in the Indian textile sector. Investors may consider the IPO as a potential long-term investment opportunity."

Shree Ram Twistex IPO Day 1: The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:

Shree Ram Twistex IPO Day 1: As the IPO is closing on Wednesday, February 25, the allotment of shares is expected to be finalised on the next business day, Thursday, February 26. Successful bidders can get the shares on the next business day, on Friday, February 27, and those who fail to get the allotment will get the refunds on the same day. Shree Ram Twistex IPO will list on the BSE and the NSE on Monday, March 2.

Shree Ram Twistex IPO Day 1: The IPO lot size is 144 shares. The minimum lot size for a retail investor is one lot. With the issue's upper price band at ₹104, the minimum amount of investment required by retail investors is ₹14,976. The maximum lot size for retail investors is 13 for ₹1,94,688.

Shree Ram Twistex IPO Day 1: As much as 75% of the net issue is reserved for qualified institutional buyers (QIBs), and 15% of the net issue is reserved for non-institutional investors (NIIs). The remaining 10% is reserved for retail investors.

Shree Ram Twistex IPO Day 1: Shree Ram Twistex IPO GMP is ₹5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Shree Ram Twistex shares is indicated as ₹109 apiece, which is 4.81% higher than the IPO price of ₹104.

Based on the analysis of the last 11 sessions of grey market activity, the IPO GMP is clearly on an upward trend and is poised for a strong listing. The lowest GMP stands at ₹0.00, while the highest GMP has reached ₹5, according to experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.Dhanya Nagasundaram is a Content Producer at Livemint, specialising in financial markets, and business news. With over eight years of experience in j...

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