Shree Ram Twistex IPO Opens: GMP Signals 5% Listing Upside, Traders Eye Early Gains

Mumbai, Feb 23, 2026 – The mainboard Initial Public Offering (IPO) of Shree Ram Twistex Ltd has officially opened for subscription today, marking a fresh ₹110.24 crore capital raise for the Gujarat‑based cotton yarn manufacturer. The launch is generating moderate positive sentiment, with the grey market premium (GMP) signaling potential listing gains for investors.

Key Market Signals – Price Band, GMP & Subscription Window

• IPO Price Band: ₹95–₹104 per share

• Issue Type: 100% fresh issue of ~1.06 cr equity shares

• GMP (Grey Market Premium): ≈ ₹5 (~4.8% premium over upper band)
  — suggesting a possible listing price near ~₹109 mid‑trade before actual subscription data arrives.

• Subscription Dates: Feb 23 – Feb 25, 2026

• Allotment Date (est.): Feb 26, 2026

• Tentative Listing: Mar 2, 2026 on BSE & NSE

• Minimum Lot: 144 shares (₹13,680–₹14,976 investment depending on bid price)

• Allocation: 75% QIBs | 15% NIIs | 10% Retail Investors

Company Snapshot & Competitive Positioning

Shree Ram Twistex is a B2B textile supplier focused on cotton yarns, including compact ring‑spun and carded varieties used across:

• Apparel (denim, shirting, sweaters, socks)

• Home textiles (terry towels, sheeting)

• Industrial fabrics (bottom wear, woven products)

The company’s manufacturing base is in Gondal, Rajkot, Gujarat, with 27,744 spindles and multiple warehouse facilities catering to both domestic millers and exporters.

Financial Trajectory & Growth Signals

FY25 Performance vs. FY24:

• Total Revenue: ₹255 cr (vs ₹232 cr)

• PAT: ₹8 cr (vs ₹6.55 cr)

• EBITDA Margin: 12.9% (vs 8.6%)

• PAT Margin: 3.14% (vs 2.83%)

Recent performance trends show top‑line expansion, improving margins, and increasing profitability—positive signals for risk‑adjusted valuation ahead of listing.

Use of IPO Proceeds – EBITDA & Cash Flow Impact

Net proceeds from the issue will be strategically deployed to:

1. Build captive renewable energy capacity—6.1 MW solar + 4.2 MW wind plants

2. Repay existing borrowings (~₹14.89 cr)

3. Fund working capital (~₹44 cr)

Transitioning part of energy sourcing to renewable assets can materially lower power cost, a key input for spinning operations, driving potential margin improvements.

Trader & Investor Takeaways

Why Traders Should Watch This IPO

• GMP at ₹5 indicates early listing premium expectations (~5%), a moderately bullish signal in the micro‑cap IPO space.

• Valuation at the upper band implies a ~₹416 cr pre-issue market cap, feasible for B2B niche textile players.

• Renewable energy investments and debt reduction support future profit sustainability and cost leverage.

Risks to Monitor

• The retail quota is only 10%, limiting retail stock allocation and potentially skewing demand dynamics.

• Micro-cap IPOs historically show volatile subscription patterns, and actual subscription rates (retail/HNI) will ultimately determine allotment and list-day price action.

Quick Snapshot (For WP Infobox)