Shree Ram Twistex’s initial public offering opened for subscription on February 23, with the company aiming to raise approximately Rs 110.24 crore through a fresh issue of equity shares.
The offering comprises 1.06 crore new equity shares and does not include any offer for sale component, indicating that no existing shareholder is divesting stake through the issue.
The company has fixed a price band of Rs 95 to Rs 104 per share. Each lot consists of 144 shares, translating into a minimum investment of Rs 14,976 for retail investors.
The IPO is entirely a fresh issue, and the proceeds are intended to fund expansion of manufacturing capacity, installation of new machinery, and coverage of operational expenses, according to the company.
Grey market activity ahead of the issue indicated a premium of approximately Rs 5 per share, implying an unofficial trading price of Rs 109. This represents about 4.81 percent above the upper end of the price band of Rs 104 per share.
Brokerage firm Swastika Investmart has assigned an “avoid” rating to the IPO, citing a valuation of around 29–30 times price-to-earnings. It stated that a significant portion of future growth appears to be factored into the current pricing.
The brokerage noted that the company’s profit and margins are improving and that the use of green energy is providing cost benefits. However, it added that compared with other lower-priced companies in the market, the issue does not indicate significant near-term upside potential.
Swastika Investmart said the IPO may be suitable only for investors willing to assume higher risk with a long-term investment horizon, and advised that those seeking listing gains or relatively safer investments may avoid the issue.
Analysts at Mastertrust have recommended subscribing to the IPO for the long term. They stated that the company operates in the B2B segment and has an established customer network. The manufacturing unit is located in a favourable location, which may support both domestic and international demand.
According to the analysts, rising demand for cotton-based products, increased domestic consumption, and expanding export opportunities in the textile sector may support the company’s long-term growth prospects.
The price band of Rs 95 to Rs 104 per share implies a limited margin of safety at the upper end, and the grey market premium of around 5 percent suggests that investors should assess associated risks before investing.
