Alpine Texworld IPO

About Alpine Texworld IPO

The IPO of Alpine Texworld comprises a fresh issue without any offer for sale. The fresh issue comprises equity shares aggregating up to 1,50,00,000 equity shares. It’s a 100% book-built issue. The lot size of shares in the IPO is [TBA] and the price band of shares is between [TBA].

Alpine Texworld IPO opens on [XX] and closes on [YY]. The allotment of shares will take place on [TBA]. The credit of shares to the Demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

Alpine Texworld is a vertically integrated textile manufacturer with capabilities in weaving and spinning. It procures processed cotton, which is subject to open-end spinning, resulting in yarns of varying thicknesses.

Objectives of Alpine Texworld IPO

The company proposes to utilise the net proceeds for:

• Proposing to finance the cost of setting up a new weaving unit at proposed manufacturing unit 3 to expand its production capabilities to produce Grey Fabric at Ahmedabad, Gujarat
  
• Prepayment or repayment, in part or full, of certain outstanding borrowings
  
• General corporate purposes
  

Industry Outlook

The global textile industry is a vast and dynamic sector that plays a crucial role in the world economy, connecting agriculture, manufacturing, design, and retail across continents. It encompasses the production of fibres, yarns, fabrics, and finished garments, involving both natural and synthetic materials.

The global textile industry has shown consistent growth over recent years, with its market size increasing steadily from USD 1,209 billion in 2019 to an estimated USD 1,460 billion in 2024. This upward trend reflects the rising demand for textiles across various segments including fashion, home furnishings, and technical applications.

On the other hand, the Indian textile and apparel industry is set to grow from USD 174 billion in FY24 to USD 350 billion in FY30, with a 12.4% CAGR driven by rising domestic and export demand. Domestically, rising disposable incomes, a growing middle class, and rapid urbanisation have led to increased consumption of fashion and home textiles.

Alpine Texworld Company Information

Alpine Texworld has grown into a vertically integrated textile manufacturer with capabilities in weaving and spinning. The company procures processed cotton, which is subject to open-end spinning, resulting in yarns of varying thicknesses. The yarns are then woven into grey fabric using looms. The company, incorporated in February 2016 began production in April 2017.

Strengths of Alpine Texworld

• Well positioned to capitalise on the growing demand of the textile sector
• Automated machineries from global brands like Toyota
• Strategic investments in an LLP which has a weaving plant and undertaken a backward integration to reduce reliance on sourcing yarn
• Experienced promoters
• Solar units that offset the company’s power consumption against the power generated and supplied by the solar units
• Track record of healthy financial performance

Risks of Alpine Texworld

• Loss of any one or more of top 10 customers would have a material adverse effect on business
• Disruption in the supply of these goods or fluctuations in their prices could have a material adverse effect on business operations
• Delay in placing the orders may result in time and cost over-runs
• Failure to obtain approval/licenses or permits to operate, may adversely affect business
• Any adverse impact in manufacturing of grey fabric would adversely affect operations and profitability
• The company has incurred indebtedness which exposes it to various risks which may have an adverse effect on business and results of operations
• Business operations are majorly concentrated in a particular geographical region
• Dependence on third party transportation providers for the supply and distribution of products
• Historical performance is not indicative of future growth or financial results
• Demand from lenders for repayment of such unsecured loans may adversely affect cash flows

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: KFin Technologies
• Book Running Lead Manager: D and A Financial Services

Alpine Texworld Business Model

Alpine Texworld has grown into a vertically integrated textile manufacturer with capabilities in weaving and spinning. Products and services of the company include grey fabric and sizing of yarn.

Alpine Texworld Growth Trajectory

The revenue from operations of Alpine Texworld jumped from ₹236.871 crores in FY 23 (standalone) to ₹237.324 crores in FY 25 (consolidated). EBITDA margin grew from 7.33% in FY 23 to 11.38% in FY 25, while PAT margin increased from 0.64% in FY 23 to 3.63% in FY 25. Automated machineries and strategic investments have helped the company grow over the years.

Alpine Texworld Market Position

Considering that Gujarat is the hub for textile processing, the company has strategically incorporated its office, manufacturing units, and operational activities in this state. Its direct presence in the region has helped it to foster connections with its customers and deliver products to them.

How to Apply for the Alpine Texworld IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.