Shree Ram Twistex IPO in focus: The initial public offering (IPO) of Shree Ram Twistex, a manufacturer of cotton yarns, which opened for subscription today, February 23, received a muted response from investors. By the end of the day, the issue was subscribed just 0.11 times, with 12.12 lakh shares bid for against the 1.06 crore shares on offer, according to exchange data.
The retail portion was subscribed 0.96 times, while Non-Institutional Investors (NIIs) subscribed just 0.12 times, and the qualified institutional portion has not yet opened for bidding.
Shree Ram Twistex IPO details
The IPO, which opened today, will remain available for bidding until Wednesday, February 25. It aims to raise ₹110.24 crore through this IPO, which is entirely a fresh issue of 1.06 crore shares. The price band for the IPO is fixed at ₹95– ₹104 per share.
The minimum lot size for retail investors has been set at one lot, consisting of 144 shares, requiring a minimum investment of ₹14,976. Investors can apply for a maximum of 13 lots, which requires capital of ₹1,94,688.
The allotment of the issue is likely to be finalised on February 26, and the shares are scheduled to be listed on both the BSE and NSE, with a tentative listing date of Monday, March 2.
It proposes to use funds from the issue towards setting up a solar power plant, repayment of debt, funding working capital, and for general corporate purposes.
Meanwhile, the grey market premium of Shree Ram Twistex as of today was ₹5 per share, which indicates the stock might list on the exchanges at a 4.80% premium over the upper band of the issue price of ₹104 apiece.
About Shree Ram Twistex
Shree Ram Twistex is engaged in the manufacturing of cotton yarns, including compact ring-spun and carded yarns, both combed and carded. Its product range also includes value-added yarns such as Eli Twist (combed and carded), compact slub yarns, and Lycra-blended yarns.
It operates exclusively in the business-to-business (B2B) segment, supplying its products to institutional buyers such as textile manufacturers, garment exporters, bulk purchasers, and fabric processors.
The company's exclusive B2B focus allows it to streamline its production and supply chain processes around the needs of large-scale buyers. It also enables it to build long-term client relationships and offer customised yarn solutions tailored to specific technical parameters, including count, twist, and strength, according to the company's DRHP report.
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