The Shree Ram Twistex IPO is set to open for public subscription on February 23, 2026, offering investors exposure to the cotton yarn manufacturing segment of India’s textile industry. The company is launching a Book Built Issue worth ₹110.24 crore, consisting entirely of a fresh issue of equity shares.

The IPO will close on February 25, 2026, with allotment expected on February 26, 2026. The shares are scheduled to list on the NSE on March 2, 2026. With steady financial performance and strong capacity utilisation, Shree Ram Twistex is entering the capital market at a time when the textile sector continues to play a key role in India’s manufacturing economy.

IPO Structure and Key Details

The public issue comprises 1.06 crore fresh equity shares, aggregating to ₹110.24 crore. There is no offer for sale component in this IPO, meaning the entire proceeds will be used by the company for its business operations and growth plans.

The price band has been fixed at ₹95 to ₹104 per equity share. At the upper price band of ₹104, the company’s estimated market capitalisation will be ₹415.74 crore.

The IPO lot size is 144 shares, and retail investors can apply for a minimum of one lot. At the upper price band, the minimum retail investment required is ₹14,976.

For High-Net-Worth Individuals, the minimum application requirement is 14 lots, which equals 2,016 shares, amounting to ₹2,09,664 at the upper price band.

Grey Market Premium Status

As of now, the Grey Market Premium for Shree Ram Twistex IPO stands at ₹0. This indicates neutral sentiment in the unofficial market ahead of listing.

Grey market trading is unregulated and operates outside stock exchange systems. The GMP reflects informal demand and supply dynamics and does not guarantee listing gains. Investors are advised to focus on fundamentals rather than speculative grey market trends.

Business Overview

Shree Ram Twistex Limited is engaged in the manufacturing of cotton yarn, which is a primary raw material used in textile production. The company produces various yarn counts suitable for weaving and knitting applications.

Cotton yarn is widely used in the production of:

• Fabrics

• Garments

• Home textiles

• Industrial textiles

The company generates revenue primarily from domestic sales to textile manufacturers. Its customers include fabric producers and garment manufacturers who rely on consistent quality yarn supply.

Manufacturing Capacity and Utilisation

One of the key operational strengths of Shree Ram Twistex is its manufacturing infrastructure. The company has an installed capacity of 9,855 metric tonnes per annum.

In FY25, the company achieved 87 percent capacity utilisation, which indicates strong demand and efficient production management. High capacity utilisation often reflects stable order flow and operational efficiency.

Sustained high utilisation levels can also lead to better cost absorption and improved profit margins, provided raw material prices remain stable.

Financial Performance

For FY25, Shree Ram Twistex reported:

• Revenue from operations of ₹25,504.47 lakh, which translates to approximately ₹255.04 crore

• EBITDA of ₹2,185.26 lakh, or approximately ₹21.85 crore

The EBITDA margin indicates the company’s operational profitability before interest, taxes, depreciation and amortisation. Investors typically assess margin trends over multiple years to evaluate consistency and efficiency.

The company’s performance reflects steady revenue generation supported by high capacity utilisation.

Industry Outlook

India is one of the largest producers and exporters of cotton yarn globally. The textile industry is a major contributor to employment and export earnings.

The cotton yarn segment benefits from:

• Strong domestic garment manufacturing

• Growing demand from weaving and knitting units

• Export opportunities

• Government support for textile manufacturing

However, the sector is also sensitive to raw material price fluctuations, particularly cotton prices. Changes in global cotton production and demand can directly impact margins.

Government initiatives aimed at strengthening the textile value chain and improving export competitiveness may support long-term growth in the industry.

Use of IPO Proceeds

The funds raised through the fresh issue are expected to be utilised for:

• Working capital requirements

• Capacity expansion

• Debt reduction if applicable

• General corporate purposes

Working capital is crucial in the yarn manufacturing business due to the need for inventory management and credit sales to textile customers.

Investment in capacity or technology upgrades may help improve production efficiency and reduce operating costs.

Competitive Landscape

The cotton yarn industry in India is highly competitive, with several organised and unorganised players. Competition is primarily based on:

• Pricing

• Yarn quality

• Timely delivery

• Customer relationships

Large players may benefit from economies of scale, while smaller companies often compete on niche products or regional markets.

Maintaining consistent quality and managing input costs are critical success factors in this sector.

Risks to Consider

Like any manufacturing business, Shree Ram Twistex faces certain risks:

• Volatility in cotton prices

• Dependence on domestic textile demand

• Power and energy cost fluctuations

• Competition from larger integrated textile companies

• Regulatory or export policy changes

A rise in cotton prices without corresponding increase in yarn selling prices could pressure margins.

The textile sector is also exposed to global economic conditions, particularly if export markets weaken.

Investor Perspective

At a market capitalisation of ₹415.74 crore at the upper price band, investors will assess whether the valuation reflects growth potential and margin sustainability.

The relatively affordable minimum retail investment of ₹14,976 may attract wider participation compared to high-ticket IPOs.

However, investors must evaluate:

• Historical revenue growth

• Profit margin trends

• Debt levels

• Expansion plans

• Industry cycle position

Long-term investment decisions should be based on financial strength and operational efficiency rather than short-term listing expectations.

Listing Timeline and Expectations

The IPO opens on February 23 and closes on February 25, 2026. Allotment is expected on February 26, and listing on the NSE is scheduled for March 2, 2026.

Subscription levels across retail, institutional and HNI categories will provide a clearer picture of investor interest.

With the Grey Market Premium currently at zero, listing performance will depend entirely on actual demand during the subscription period and overall market sentiment at the time of listing.

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