Shree Ram Twistex IPO Day 1 Subscription At 0.12x

The Indian primary market saw yet another interesting IPO subscription opening. The Shree Ram Twistex Ltd initial public offering (IPO) opened its doors for subscription on Monday, 23 February 2026. The issue recorded a total subscription of 0.12x by the close of day 1.

One of the most differentiating features of the opening day was the enthusiasm displayed by the retail individual investor (RII) segment. Generally, these are individual investors applying for up to ₹2 lakh. The RII segment nearly reached full occupancy in its reserved portion.

However, the Non-Institutional Investor (NII) category, often comprising high-net-worth individuals (HNIs), saw a soft response. Within this, the small NII (sNII) group subscribed more than the big NII (bNII) segment.

The qualified institutional buyer (QIB) portion, which consists of professional entities like mutual funds and banks, also seemed to have remained quiet on day 1. But this is a usual trend for institutional players who generally evaluate demand until the final day.

Shree Ram Twistex IPO Day 1 Subscription Snapshot

Here are brief tables that represent Shree Ram Twistex IPO day 1 performance.

As of February 2026, the Indian primary market seems to resemble a beehive of activity. Monday, 23 February 2026, marked the opening of the Shree Ram Twistex Limited initial public offering (IPO).

The Shree Ram Twistex IPO is a book-built issue valued at ₹110.24 Cr. The offering consists entirely of a fresh issue of 1.06 Cr. equity shares. Market participants can subscribe to the issue within a price band of ₹95 to ₹104 per equity share.

The lot size for IPO subscription is fixed at 144 shares. Meaning, the minimum investment for a retail participant stands at ₹14,976 (i.e., price for one lot). The company is entering the public arena with a pre-IPO market capitalisation of ₹415.74 Cr.

In terms of allocation, the issuer has reserved:

• 75% of the offer for qualified institutional buyers (QIBs)

• 15% for non-institutional investors (NIIs)

• 10% for the retail segment.

How Is The Company Planning To Utilise IPO Funds?

Shree Ram Twistex is planning to utilise its fresh issue funds majorly to enhance company operations. Here is a table summarising the intended use of IPO proceeds for the Shree Ram Twistex IPO:

The important aspect of any initial public offering lies in how the management intends to redeploy the capital raised. Shree Ram Twistex has outlined a clear roadmap focused on operational self-sufficiency and financial deleveraging (reducing debt).

Therefore, a huge portion of the proceeds is earmarked for an ambitious shift towards renewable energy for captive use. Meaning, the company is planning to use renewable energy for its operations. It is investing in both solar and wind power plants. Thus, the company is planning to insulate its manufacturing margins from the volatility of industrial electricity tariffs.

Generally, electricity-related expenses can be a major cost component in the power-intensive spinning industry. Furthermore, Shree Ram Twistex is allocating capital towards its working capital needs and debt repayment. This might strengthen its balance sheet in the future.

In the business-to-business (B2B) yarn market the credit cycles and raw material inventory management are important to maintain liquidity. The IPO-led capital infusion could provide the necessary cushion to manage such market fluctuations.

How Does Its Business Model Support Scalability?

The company is based in Gondal, Rajkot, in Gujarat. This is the heart of Gujarat’s textile industry and provides a unique geographic advantage. Here are the points highlighting the main aspects of its business specialisation.

• Diverse Product Portfolio - The company specialises in high-quality cotton yarns, including compact ring spun, carded yarns, and value-added variants like Eli Twist and Lycra-blended yarns.

• Wide Application - Its products serve diverse sectors such as denim, home textiles, sweaters, socks, and industrial fabrics.

• Established B2B Network - The company is operating on a business-to-business model. It has long-term relationships with garment exporters and fabric processors across India (from Punjab to Tamil Nadu).

• Advanced Infrastructure - The business features modern compact ring-spinning machines and extensive warehousing capacity for efficient inventory management.

• Operational Control - An integrated setup has led to tighter quality control and faster turnaround times. These are essential for fast-paced supply chains.

• Logistical Advantages - Shree Ram Twistex has the proximity to major cotton-growing belts. It also has access to major ports. Such geographical advantage can facilitate both domestic distribution and international exports.

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Investor Takeaways

The IPO received a cumulative demand of 6,119 applications on Day 1 of the subscription. This seems to reflect a targeted interest from smaller market participants. The company is planning to use its majority IPO proceeds to reduce manufacturing costs by shifting towards renewable energy.

Also, the early retail interest in Shree Ram Twistex is likely rooted in the company’s established presence within the Gujarat textile belt. It would be interesting to witness the IPO performance on day 2 and day 3 on 24 February and 25 February, respectively.

Source:

Chittorgarh

SEBI RHP

NDTV Profit

Livemint

Economic Times