Shree Ram Twistex IPO: Cotton yarns manufacturer Shree Ram Twistex is set to launch its initial public offering (IPO) on Monday, February 23. The ₹110.24 crore IPO is entirely a fresh issue of 1.06 crore shares.
The company intends to use the net proceeds from the issue to set up solar power and wind power projects for captive use. Some part of the net proceeds will be used for the repayment and pre-payment of certain borrowings and for funding the working capital requirements.
Meanwhile, the gray market is showing mild enthusiasm for the issue. The Shree Ram Twistex IPO GMP on Friday morning indicates the stock could be listed at a modest premium over the issue price.
Shree Ram Twistex IPO GMP
According to gray market sources, Shree Ram Twistex IPO GMP on February 20 was ₹5. Considering the upper price band of the mainboard at IPO ₹104 per share, the estimated listing price of Shree Ram Twistex shares is ₹109, a premium of nearly 5%.
Shree Ram Twistex IPO key details
1. Shree Ram Twistex IPO price band: The issue’s price band has been set at ₹95 to ₹104 per share.
2. Shree Ram Twistex IPO date: The mainboard IPO is opening for subscription on Monday, February 23, and will conclude on Wednesday, February 25.
3. Shree Ram Twistex IPO size: The IPO is a fresh issue to raise ₹110.24 crore. There is no offer for sale portion in the issue.
4. Shree Ram Twistex IPO reservation: 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.
5. Shree Ram Twistex IPO lot size: 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.
6. Shree Ram Twistex IPO lot book-running lead managers and registrar: Interactive Financial Services Limited is the book-running lead manager of the issue. Bigshare Services Private Limited is the registrar of the Shree Ram Twistex IPO.
7. Shree Ram Twistex IPO allotment date and listing date: As the IPO is closing on Wednesday, February 25, the allotment of shares is expected to be finalized 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.
8. Object of Shree Ram Twistex IPO: The company intends to utilize the net proceeds from the issue for:
(i) Funding for setting up of 6.1 MW solar power plant for captive use.
(ii) Funding for setting up of 4.2 MW wind power plant for captive use.
(iii) Repayment and/or pre-payment, in full or part, of certain borrowings availed by it.
(iv) Funding the working capital requirements.
(v) General corporate purposes.
9. Shree Ram Twistex business overview: As per the Red Herring Prospectus (RHP), the company manufactures cotton yarns, including compact ring spun and carded yarns, both combed and carded.
Our manufacturing facility in Gondal, Rajkot, Gujarat, houses 17 compact ring-spinning machines with a total spindle count of 27,744,” reads the RHP.
10. Shree Ram Twistex financial performance: 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.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
