Shree Ram Twistex IPO – Cotton Yarn Manufacturer Entering Capital Markets in Feb 2026

The Shree Ram Twistex IPO is set to open in Feb 2026, bringing a Gujarat-based cotton yarn manufacturer to the capital markets. Shree Ram Twistex Limited, engaged in the manufacturing of cotton yarns including Compact Ring Spun and Carded yarns, is launching a ₹110.24 crore mainboard initial public offering.

Operating from its fully integrated Rajkot facility in Gondal, Gujarat, the company supplies value added yarns to textile manufacturers, garment exporters, bulk purchasers, and fabric processors across India and select international markets.

With growing revenue, expansion into renewable energy through a 4.2 MW wind power plant and 6.1 MW solar power plant, and a shift toward higher-margin products, Ram Twistex IPO is attracting interest from retail investors and institutional buyers.

Shree Ram Twistex IPO – IPO Details

The Ram Twistex IPO price band is set at ₹95 to ₹104 per share. Investors should check the red herring prospectus before applying.

IPO Timetable – Feb 2026 Subscription Period

The IPO will list on BSE and NSE.

Shree Ram Twistex – Company Overview

Shree Ram Twistex Ltd operates a fully integrated spinning manufacturing facility at Gondal, Rajkot, Gujarat. The company operates with:

• 27,744 spindles

• Installed capacity of 9,855 MT per annum

• Dedicated storage infrastructure for raw materials and finished goods

The company operates on a business-to-business (B2B) model, supplying products to:

• Textile manufacturers

• Garment exporters

• Merchant exporters

• Bulk purchasers

• Fabric processors

Its key customers include Welspun Living Limited and Jindal Worldwide Limited.

Shree Ram Twistex Limited – Product Range and Manufacturing

Shree Ram Twistex manufactures cotton yarns including:

• Compact Ring Spun

• Carded yarns

• Ring spun and carded

• Combed and carded yarns

• Eli Twist

• Compact Slub yarns

• Lycra blended yarns

The product range includes value added yarns used in:

• Knitting and weaving applications

• Denim

• Terry towels

• Shirting

• Home textiles

• Industrial fabrics

• Bottom wear

• Terry towels shirting

The company is shifting toward higher-margin organic and specialty yarns in the textile industry.

Business Model – Raw Materials and Customer Base

The business is vertically integrated from cotton bale procurement to finished yarn packaging.

Raw Materials

• Raw cotton

• Cotton bales

• Other raw materials for spinning

Raw cotton price volatility remains a key risk for profitability.

Customer Concentration Risk

The company has built strong institutional relationships but faces:

• Customer concentration risk

• No long-term binding contracts

• Loss of one major client could materially impact revenue

Geographic concentration is also a risk, as revenue comes from limited states such as Gujarat, Rajasthan, and Maharashtra.

Financial Performance of Shree Ram Twistex Ltd

Financial Summary (₹ Crore)

Growth Highlights

• Revenue increased from ₹213.10 crore (FY23) to ₹255.04 crore (FY25)

• PAT grew from ₹2.05 crore (FY23) to ₹8.00 crore (FY25)

• EBITDA margin improved to 12.90% in H1 FY26

• PAT CAGR of 97.46%

110.24 Crore IPO – Use of Funds

The ₹110.24 crore fresh issue will be allocated toward:

• ₹39 crore for 4.2 MW wind power plant

• ₹14.89 crore for debt repayment

• ₹44 crore for working capital

• Solar power plant for captive use

The company aims to become a green-energy integrated cotton yarn manufacturer and reduce power cost volatility.

Shree Ram Twistex IPO – Is It IPO Suitable for Investors?

Positives

• Integrated Rajkot facility

• Expansion into renewable energy

• Growing revenue and margin expansion

• Strong institutional buyers

• Global textile industry projected to reach USD 350 billion by 2030

Risks

• Raw cotton volatility

• Customer concentration

• Geographic concentration

• Execution risk in renewable projects

• Cost overruns

• Previous CRISIL non-cooperation tag

• Valuation risk (P/E ~29.7x to 52x)

• IPO considered “pricey”

Grey market premium currently around ₹5, indicating modest listing gain expectations.

How to Apply – IPO Process

Retail investors can apply during the subscription period:

• Open Tradejini demat account

• Go to IPO section in Products Menu

• Bid within price band

• Authorize UPI payment

Institutional buyers and retail investors can participate.

Conclusion of Shree Ram Twistex IPO and Outlook

The Shree Ram Twistex IPO offers exposure to India’s growing textile industry and value added cotton yarns segment. The company’s focus on renewable energy integration, compact ring spun yarns, and expanded product range strengthens long-term positioning.

However, valuation risk, raw materials volatility, and execution risk in power plant projects require careful evaluation.

For investors seeking exposure to the cotton yarn manufacturing space in Feb 2026, Ram Twistex IPO presents a mid-sized manufacturing opportunity.

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