Shree Ram Twistex Limited is entering the primary market with its much-awaited Initial Public Offering IPO, aiming to raise ₹110.24 crore. The company operates in the cotton yarn manufacturing segment and supplies yarn primarily to domestic textile manufacturers engaged in weaving and knitting applications. With a steady operational track record and high capacity utilisation levels, the IPO is drawing attention from investors tracking opportunities in the textile sector.

The Shree Ram Twistex IPO is a Book Built Issue consisting entirely of a fresh issue of 1.06 crore equity shares. There is no offer for sale component in this issue. This means that the entire proceeds raised from the IPO will go directly to the company, strengthening its balance sheet and supporting business expansion plans.

The subscription window for the IPO opens on February 23, 2026, and closes on February 25, 2026. The allotment of shares is expected to be finalised on February 26, 2026, and the shares are scheduled to be listed on the NSE on March 02, 2026.

IPO Structure and Price Band

The price band for the Shree Ram Twistex IPO has been fixed at ₹95 to ₹104 per equity share. Investors can bid within this range. At the upper end of the price band, the company’s market capitalisation is estimated at approximately ₹415.74 crore.

The IPO has a lot size of 144 shares. Retail investors are required to apply for a minimum of one lot, which amounts to ₹14,976 at the upper price band. High-Net-Worth Individuals HNIs are required to apply for a minimum of 14 lots, translating into 2,016 shares and an investment amount of ₹209,664.

This relatively moderate lot size makes the IPO accessible to retail investors while also attracting interest from larger individual investors seeking exposure to the textile manufacturing segment.

Business Overview

Shree Ram Twistex Limited is engaged in the manufacturing of cotton yarn, which is a key raw material for the textile industry. The company produces various yarn counts suitable for weaving and knitting applications. Cotton yarn plays a crucial role in the production of fabrics used in garments, home textiles, and other textile products.

The company operates with an installed capacity of 9,855 metric tonnes per annum. In FY25, it achieved an impressive 87 percent capacity utilisation, indicating efficient operations and steady demand for its products.

The company primarily serves domestic customers, supplying yarn to textile manufacturers across India. The textile sector remains one of the largest employment-generating industries in the country and plays a significant role in India’s export economy.

Financial Performance

For the financial year FY25, Shree Ram Twistex reported revenue from operations of ₹25,504.47 lakh. The company recorded an EBITDA of ₹2,185.26 lakh, reflecting operational profitability.

Strong capacity utilisation and steady domestic demand have supported revenue generation. While the cotton yarn segment can be cyclical due to fluctuations in cotton prices and global demand conditions, the company has maintained stable operations.

Investors often evaluate IPOs based on profitability metrics, revenue growth trends, margin stability, and balance sheet strength. In the case of Shree Ram Twistex, EBITDA performance and high utilisation levels may be viewed positively by market participants.

Industry Context

India is one of the largest producers of cotton globally. The textile sector is supported by government initiatives, export demand, and domestic consumption growth. Cotton yarn manufacturing remains a vital part of the textile value chain.

However, the sector is also exposed to risks such as volatility in raw material prices, fluctuations in cotton production, export restrictions, and global demand cycles. Companies in this segment must manage input costs carefully while maintaining consistent product quality.

IPO Objectives

As this is entirely a fresh issue, the funds raised from the IPO will flow into the company. Although specific utilisation details are not outlined here, fresh issue proceeds are typically used for purposes such as working capital requirements, debt repayment, capacity expansion, machinery upgrades, or general corporate purposes.

Strengthening the balance sheet and improving liquidity can support long-term business stability and growth.

Grey Market Premium

The Grey Market Premium GMP for the Shree Ram Twistex IPO is currently reported at ₹0. It is important to note that GMP is unofficial and operates in an unregulated environment. It does not represent actual stock exchange trading.

Grey market activity is based on informal demand and supply dynamics and should not be the sole factor in investment decisions. Investors are advised to evaluate fundamentals rather than relying purely on speculative indicators.

Lead Manager and Registrar

The Book Running Lead Manager for the issue is Interactive Financial Services Limited. The Registrar to the issue is KFIN Technologies Limited. These intermediaries play a key role in managing the IPO process, including book building, allotment coordination, and compliance procedures.

Listing and Market Outlook

The shares are scheduled to be listed on the NSE on March 02, 2026. Post-listing performance will depend on multiple factors, including subscription levels, overall market conditions, investor sentiment towards textile stocks, and broader economic trends.

If the IPO receives strong subscription across retail, HNI, and institutional categories, it may reflect positive investor sentiment. Conversely, subdued subscription levels may indicate cautious market behaviour.

Investor Considerations

Before investing, potential investors should evaluate:

• Company’s revenue consistency

• EBITDA margins and profitability trends

• Capacity utilisation and operational efficiency

• Industry risks and raw material price volatility

• Overall valuation compared to peers

Textile companies often operate in a competitive environment with pricing pressure. Long-term performance depends on cost management, product diversification, and customer relationships.

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