Shree Ram Twistex ltd

Shree Ram Twistex Ltd is a Rajkot-based player that has caught some attention for its shift toward "Green Energy" within a traditional manufacturing setup.

Here is the breakdown for the Shree Ram Twistex issue.

Shree Ram Twistex Ltd IPO Summary

Important Dates & Timeline

The IPO opened for subscription this morning, running on the same schedule as Clean Max.

• Opening Date: February 23, 2026 (Today)

• Closing Date: February 25, 2026

• Allotment Finalization: February 26, 2026

• Refund Initiation: February 27, 2026

• Listing Date: March 2, 2026 (BSE & NSE)

Pricing & Investment (Retail)

• Price Band: ₹95 to ₹104 per equity share

• Lot Size: 144 Shares

• Minimum Investment: ₹14,976

• Maximum Retail Investment (13 Lots): ₹1,94,688

Issue Structure

• Total Issue Size: ₹110.24 Crore

• Fresh Issue Portion: ₹110.24 Crore (100% Fresh Issue)

• Offer for Sale (OFS): None (Promoters are not selling any existing shares)

Objectives of the Fresh Issue

The company is aggressively moving toward captive power to reduce manufacturing costs:

• Renewable Energy Capex: ₹46.85 crore to set up a 6.1 MW Solar plant and a 4.2 MW Wind power plant.

• Working Capital: ₹44.00 crore to fund daily operations and cotton procurement.

• Debt Repayment: ₹14.89 crore to settle existing borrowings.

Quick Financial Snapshot (FY25)

• Revenue from Operations: ₹256.32 Cr (Up from ₹231.72 Cr in FY24)

• Profit After Tax (PAT): ₹8.00 Cr (Up from ₹6.55 Cr in FY24)

• EBITDA Margin: ~8.57% (Improving to 12.90% in H1 FY26)

• P/E Ratio: ~29.7x at the upper price band (Post-IPO basis)

Grey Market Sentiment (GMP)

As of today, February 23, the GMP is holding steady at +₹5. At the upper price band of ₹104, this indicates a potential listing price of ₹109, reflecting a modest gain of approximately 4.8%.

Key Strengths & Risks

• Captive Power Play: The shift to 10.3 MW of renewable energy is expected to improve EBITDA margins by 200–300 bps once operational.

• No OFS: The fact that promoters aren't offloading any stake is generally viewed as a sign of confidence in future growth.

• Risk (Customer Concentration): The top 10 customers contribute roughly 80–85% of total revenue, with Welspun Living being a major client.

• Risk (Valuation): At a P/E of nearly 30x, it is priced higher than established textile peers like Ambika Cotton Mills or Rajapalayam Mills, leaving less "margin of safety" for investors.