Shree Ram Twistex Makes Weak Market Debut, Lists 35% Lower At ₹68

On 2 March, Monday, Shree Ram Twistex Limited shares debuted at a sharp discount at ₹68 on the National Stock Exchange (NSE) and ₹70 on the Bombay Stock Exchange (BSE), even after the company’s initial public offering (IPO) saw robust investor demand.

The public issue was priced in the range of ₹95 to ₹104 per share, with investors required to bid in lots of 144 shares. Through the offering, the company mobilised ₹110 crore by issuing 1.06 crore new equity shares, with no offer-for-sale component involved.

The initial public offer, which was open for subscription from 23 to 25 February, was subscribed 43.66 times.

What Are Market Debut Details?

At the listing price of ₹68 per share, both retail and high net-worth investors faced immediate mark-to-market losses on their allotted shares.

At the listing price, retail investors in the Shree Ram Twistex issue incurred a loss of ₹5,184 on every lot allotted to them. Each lot comprised 144 equity shares with an application value of ₹14,976.

Similarly, investors in the HNI category faced a loss of ₹72,576 for 14 lots allotted, equivalent to 2,016 equity shares against a total investment of ₹2,09,664.

What Are Subscription Details?

The public issue drew an overwhelming response from investors. By the close of bidding, it had been subscribed 43.66 times. In all, more than 5.63 lakh applications were filed, and cumulative bids crossed ₹4,800 crore.

What Are The Objectives Of The Issue?

Shree Ram Twistex Limited plans to deploy the proceeds from its public offering across capacity-building and balance sheet-strengthening initiatives.

• Setting up a 6.1 MW solar power plant for captive consumption.

• Establishing a 4.2 MW wind power plant for captive use (₹39 crore).

• Repayment and/or prepayment of certain outstanding borrowings (₹14.89 crore).

• Meeting the company’s working capital requirements (₹44 crore).

• Allocation toward general corporate purposes.

What Is The Company’s Product Portfolio?

The company is based in Rajkot and is engaged in the manufacture of cotton yarn, covering compact ring-spun as well as conventional ring-spun varieties in both combed and carded segments.

A variety of yarns are available for knitting and weaving to make denim, towels, shirting and sheeting fabrics, sweaters, socks, underwear, home furnishings, and even certain industrial textile uses.

In addition to standard offerings, the firm manufactures specialised yarn variants, including Eli Twist yarn in combed and carded forms, compact slub yarns and Lycra-blended yarns, aimed at customers seeking differentiated textile inputs.

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What Investors Should Watch Ahead?

Investors may track how the stock stabilises in the days following listing, particularly whether buying interest emerges near current levels or volatility persists.

Market participants may also assess debt reduction efforts and working capital management, as these factors can affect cash flows and balance sheet strength.

Developments in cotton prices, yarn demand from domestic and export markets, and overall conditions in the textile sector will remain relevant to performance in the coming quarters.

Sources:

1. Business Standard
2. Moneycontrol
3. BSE
4. Business Today