Market Overview: Shree Ram Twistex IPO The initial public offering of Shree Ram Twistex Limited concluded on February 25, 2026, with overwhelming market participation. The textile manufacturer, specializing in high-quality cotton yarns, successfully navigated a competitive primary market environment to secure robust subscription levels across key investor categories. Final Subscription and Demand The Rs 110.24 crore issue was oversubscribed 12 times by the close of the final bidding day. Non-Institutional Investors led the charge with a subscription rate of 56.13 times their allotted quota. Retail individual investors also displayed significant appetite, oversubscribing their portion by 25.42 times. This strong turnout highlights positive sentiment for mid-sized manufacturing plays despite a relatively muted response from Qualified Institutional Buyers, who booked roughly 9% of their segment. Pricing and Valuation The IPO was structured as a 100% fresh issue of 1.06 crore equity shares. Priced in a band of Rs 95 to Rs 104 per share, the company achieved a pre-issue market capitalization of approximately Rs 416 crore. Market analysts noted that the valuation at the upper price band reflects a price-to-earnings ratio of nearly 30 times, aligning with growth expectations in the domestic textile sector. Grey Market and Listing Outlook Sentiment in the unofficial grey market surged during the bidding period. The Grey Market Premium jumped to 17.3%, translating to roughly Rs 18 per share over the issue price. Based on these trends, the stock is estimated to debut near Rs 122. Allotment of shares is expected to be finalized on February 26, 2026, with the official listing scheduled for March 2, 2026, on both the BSE and NSE. Strategic Use of Proceeds The capital raised will be directed toward critical operational upgrades and financial deleveraging. Key allocations include: - Rs 22.2 crore for a 6.1 MW solar power plant. - Rs 39 crore for a 4.2 MW wind power plant. - Rs 14.89 crore for the repayment of existing debt. - Rs 44 crore for meeting increased working capital needs. Operational and Financial Highlights The company reported a total income of Rs 256 crore for FY25, up from Rs 232 crore the previous year. Profit After Tax rose to Rs 8 crore, showing a steady upward trajectory. By transitioning to nearly 100% captive renewable energy, the company aims to reduce power costs—which currently average Rs 8.92 per unit—potentially expanding EBITDA margins by 200 to 300 basis points in the long term. Sector Context The Indian textile industry is projected to reach USD 350 billion by 2030. Shree Ram Twistex is positioning itself to capture this growth by diversifying its product portfolio into value-added yarns like Lycra-blended and Eli Twist varieties. While the company faces risks such as high customer concentration and raw cotton price volatility, its move toward green energy integration is viewed as a significant efficiency driver.