At the upper end, an IPO company is valued at Rs. 416 crore at a pre-issue market cap. The offer will close on February 25, with allotment likely on February 26 and provisional listing on BSE and NSE on March 2.
Investors can bid for a minimum of 144 shares, at an upper price band of Rs. 14,976 can translate into an investment. At least 75% of the issue is reserved for qualified institutional buyers, 15% for non-institutional investors and up to 10% for retail investors.
About the company
Shree Ram Twistax manufactures cotton yarns including compact ring spun and carded yarns, both combed and carded varieties. Its products are used in knitting and weaving such as denim, terry towels, shirting, sheets, sweaters, socks, bottom wear and home textiles.
The company also manufactures value-added yarns such as Alley Twist, Compact Slub Yarn and Lycra-Blended Yarn. It operates on a B2B model, supplying to textile manufacturers, garment exporters, bulk buyers and fabric processors in several states including Gujarat, Rajasthan, Maharashtra, Tamil Nadu and West Bengal, along with exports.
Its manufacturing facility is located at Gondal, Rajkot, Gujarat, with 17 compact ring-spinning machines and a total spindle count of 27,744. It also operates five warehouses with a combined storage capacity of 9,855 MT.
Financial performance
For FY25, the company has a total of Rs. 256 crore in revenue, which in FY24 was Rs. 232 crores. Profit after tax in FY24 was Rs. 6.55 crore in FY25 as against Rs. 8 crore was. EBITDA a year ago was Rs. 20 crore improved from Rs. 22 crores.
By September 2025, the total revenue will be Rs. 132 crore and PAT Rs. 7 crores. EBITDA margin improved to 12.9% in FY25 from 8.57% in FY24, while PAT margin increased to 3.14% from 2.83% previously.
Use of income
The company will use the proceeds of the IPO to set up a 6.1 MW solar power plant and a 4.2 MW wind power plant for captive use, approximately Rs. 14.89 crore to repay certain loans and Rs. 44 crore planned to fund working capital requirements. The shift to captive renewable energy is expected to reduce power costs, which form a key component of spinning operations.
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