Shree Ram Twistex Ltd. ₹110 Crore IPO Opens Feb 23: Price Band ₹95–104, Full Details

Shree Ram Twistex is launching its maiden book-built IPO aggregating to ₹110.24 crore. The issue is entirely a fresh issue of 1,06,00,000 equity shares of face value ₹10 each. The IPO opens for subscription on February 23, 2026, and closes on February 25, 2026. The allotment is expected on February 26, 2026, refunds and credit of shares on February 27, 2026, and listing is scheduled on March 2, 2026, on both BSE and NSE.

IPO Structure and Investment Details

The price band has been fixed at ₹95 to ₹104 per share. At the upper price band of ₹104, the company is targeting a market capitalisation of ₹415.74 crore. The lot size is 144 shares. 

Retail investors need a minimum investment of ₹14,976 for one lot, while the maximum retail application of 13 lots (1,872 shares) amounts to ₹1,94,688. For sNII investors, the minimum application is 14 lots (2,016 shares) worth ₹2,09,664 and can go up to 66 lots (9,504 shares) amounting to ₹9,88,416. For bNII investors, the minimum application is 67 lots (9,648 shares), amounting to ₹10,03,392.

Capital Structure (Pre & Post IPO)

Interactive Financial Services Ltd. is the Book Running Lead Manager, and Bigshare Services Pvt. Ltd. is the registrar to the issue, while Beeline Broking Ltd. is a syndicate member.

Business Overview

Shree Ram Twistex Ltd. is engaged in manufacturing cotton yarns including Compact Ring Spun and Carded Yarns, both Combed and Carded. The company also manufactures value-added yarns such as Eli Twist (Combed and Carded), Compact Slub Yarns, and Lycra-Blended Yarns. These yarns are used in knitting and weaving applications across denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics.

The company operates exclusively on a B2B model, supplying textile manufacturers, garment exporters, bulk purchasers, and fabric processors. Domestic sales are conducted directly and through brokers and agents, while exports are routed through merchant exporters. The company’s revenue is primarily derived from domestic markets. It also generates income from by-products such as cotton waste and sells Viscose-Cotton Mix Yarn, FP Bales, and Open-End Yarn.

The manufacturing facility is located in Gondal, Rajkot, Gujarat, equipped with 17 compact ring-spinning machines and a total spindle capacity of 27,744. The company operates five warehouses, including two for raw materials, two for finished goods, and one general storage facility, with a combined storage capacity of 9,855 MT. As of November 30, 2025, the company had 58 employees.

Objects of the Issue

The company plans to utilise ₹39.00 crore for setting up a 4.2 MW wind power plant for captive use, ₹14.89 crore for repayment or prepayment of certain borrowings, ₹44 crore for working capital requirements, and the remaining amount for general corporate purposes. The offer document also mentions funding for a 6.1 MW solar power plant for captive use, forming part of the overall utilisation plan. The total estimated allocation toward stated objects amounts to ₹97.89 crore.

Read all details about Shree Ram Twistex IPO before you apply.

Financial Performance

Valuation Metrics

The company reported a pre-IPO EPS of ₹2.72 and a post-IPO EPS of ₹3.50. At the upper price band of ₹104, the post-IPO P/E stands at 29.69 times based on annualised FY26 earnings, while the P/E based on FY25 earnings is 52.00 times. The average EPS for the last three fiscals is ₹2.22 with an average RoNW of 9.23%.

The issue is priced at a P/BV of 3.79 based on a NAV of ₹27.47 as of September 30, 2025, while another metric indicates a Price-to-Book Value of 4.13. Compared to listed peers such as Ambika Cotton Mills Ltd., Damodar Industries Ltd., and Rajapalayam Mills Ltd., which are trading at P/E multiples of 12.4, 7.69, and 9.49, respectively, as of February 18, 2026, the company appears to be commanding a significant premium.

Capital History and Promoters

The company previously issued further equity shares at ₹20 per share between July 2014 and March 2016 and issued bonus shares in the ratio of 1.5:1 in March 2024. The average cost of acquisition for promoters is ₹3.33, ₹5.48, and ₹6.22 per share. The promoters of the company are Bhaveshbhai Bhikhumbhai Ramani, Jay Atulbhai Tilala, and Nidhi Bhaveshbhai Kothari. The company has not declared dividends in the reported periods.

Conclusion 

Shree Ram Twistex operates in a highly competitive and fragmented cotton yarn segment. While the company has shown consistent growth in revenue and profitability over the reported periods and improving margins, the sharp improvement in margins from FY24 onward raises sustainability concerns. Based on FY25 and annualised FY26 earnings.