| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹95 to ₹104 | 144 | 23th Feb, 2026 –25th Feb, 2026 | ₹110 Cr |
Shri Ram Twistex Ltd.
Shri Ram Twistex Limited manufactures 100 percent cotton yarns with a focus on compact and value-added products. Its portfolio includes compact ring spun and carded yarns in both combed and carded variants, along with Eli Twist, compact slub and Lycra blended yarns catering to applications such as denim, home textiles, shirting, and knitwear. The company operates entirely in the B2B segment, supplying institutional textile manufacturers, garment exporters and bulk buyers. The revenue mix is anchored by carded yarn, which contributed 51.3% of revenue in FY25, followed by Eli Twist yarn at 29.6%. Combed yarn accounted for 6.2%, Lycra blended yarn 4.9%, cotton waste 3.5%, FP bales 2.6% and open-end yarn 1.0%, with compact slub yarn forming a marginal share. Manufacturing is undertaken at a single facility in Gondal, Gujarat, with over twenty-seven thousand spindles operating on a three-shift basis. The plant is equipped with modern spinning and quality control systems and supported by in-house warehousing for raw materials and finished goods. Sales are predominantly domestic, with 93.9% of FY25 revenue derived from India and 6.1% from exports routed through merchant exporters. Domestic sales are executed through direct institutional relationships and brokers, with a significant concentration in Gujarat and presence across other key textile states. The customer base is relatively concentrated, with top customers contributing a substantial share of revenues. Cotton bales constitute the primary raw material and are sourced through brokers from major cotton-producing states. Procurement is aligned with the harvest season to benefit from favourable pricing, with buffer inventory maintained to ensure uninterrupted operations. The company also utilizes pledge-based financing against cotton stocks to optimize working capital management.
Objective of Shri Ram Twistex Ltd.
The company proposes to utilize net proceeds from the issue towards the following objects:
- The company will not receive any proceeds from the issue as the entire offer comprises of OFS worth Rs. 110 crores.
Rationale To Shri Ram Twistex Ltd.
Investment Rationale
Integrated and technology-driven spinning facility enhances efficiency, quality control and value-added capabilities
The company operates a fully integrated spinning facility at Gondal, Gujarat, covering the entire yarn manufacturing value chain from cotton bale procurement to finished yarn packaging. Key processes including cleaning, carding, combing, spinning, and winding are housed within a single location, enabling tighter process control, lower material handling losses and improved coordination across production stages. This integrated setup enhances operational efficiency, ensures consistency in yarn quality, and reduces production lead times. At the core of its manufacturing capability is compact ring spinning technology, which improves fibre alignment and reduces yarn hairiness and breakage compared to conventional systems. This enables the production of stronger, smoother, and more uniform yarns that meet the quality standards of institutional textile manufacturers. To further strengthen its value-added portfolio, the company is commissioning in-house Two-for-One twisting machines, which enhance its ability to manufacture high-performance Eli Twist and Lycra blended yarns. Bringing twisting operations in-house improves quality control, reduces turnaround time, and enhances cost efficiency, while deepening vertical integration. The integrated infrastructure allows the company to manufacture a diversified range of yarns catering to knitting, weaving and hosiery segments, while offering customization in terms of count, ply, twist, and fibre characteristics. This operational flexibility strengthens customer relationships and positions the company to scale efficiently while maintaining product quality and responsiveness to market requirements.
Established customer relationships and strategic location support revenue stability and scalability
The company benefits from long-standing relationships with institutional customers, bulk purchasers, and merchant exporters, built over nearly a decade of operations. It operates through a lean direct sales structure supplemented by a network of eight third-party brokers and agents as of September 30, 2025. These intermediaries assist in identifying prospects, facilitating order negotiations, and expanding market reach, enabling the company to maintain consistent customer engagement without significant fixed sales overhead.Over the recent fiscals, the company has served more than forty-five customers annually, with a meaningful portion of key and non-key customers associated for over four years, reflecting relationship continuity and repeat business visibility. Its customer-centric approach, with an emphasis on product customization across count, ply, and technical specifications, strengthens stickiness and supports sustained demand. In addition, the manufacturing facility in Gondal, Gujarat, provides strategic and logistical advantages. The plant is located within a well-developed textile ecosystem with access to cotton-producing regions, skilled labour, and established logistics infrastructure. Proximity to national highways, rail connectivity and port access enhances supply chain efficiency for both domestic and export markets. The facility spans a sizeable land parcel with only a portion currently built up, providing headroom for future capacity expansion. Dedicated on-site storage infrastructure supports efficient handling of cotton bales and finished goods, enabling effective inventory management, smooth dispatch cycles and reduced operational bottlenecks. Collectively, strong customer relationships combined with strategic location and expansion flexibility enhance revenue stability and position the company for scalable growth.
Valuation of Shri Ram Twistex Ltd.
Shri Ram Twistex Limited operates as a B2B-focused cotton yarn manufacturer with a diversified product mix spanning carded, compact and value-added yarns, supported by an integrated spinning facility and institutional customer relationships. The company’s manufacturing integration, customization capabilities and presence across knitting and weaving segments position it to participate in both domestic textile demand and export-linked opportunities. The operating environment remains structurally favourable. The industry is projected to scale to USD 350 billion by 2030, supported by favourable demographics, raw material availability, a fully integrated textile value chain and policy support. As the second largest spinning capacity globally after China, India remains a key supplier of cotton yarn, with nearly 70% of production consumed domestically. Financially, the company has delivered steady revenue and operating growth over FY23 to FY25, with Revenue, EBITDA and PAT registering CAGRs of 9.4%, 10.2% and 97.5%, respectively. While EBITDA margins moderated to 8.2% in FY25 from 8.8% in FY24 due to elevated input and other costs, margins remain broadly stable compared to FY23 levels. The sharp improvement in PAT CAGR reflects operating leverage benefits and improved cost absorption over the period. Return ratios have strengthened meaningfully, with ROE improving from 3.4% in FY23 to 10.8% in FY25 and ROCE expanding from 7.2% to 10.9% over the same period. The improvement in capital efficiency indicates better utilization of the expanded spindle base and gradual normalization of profitability metrics. On the valuation front, with the company trading at a P/E of 38.2x based on it FY25 earnings, which we believe is fairly priced given the stronger financials compared to its peers. We thus recommend a “SUBSCRIBE” rating from a medium-to long-term perspective.
What is the Shri Ram Twistex Ltd. IPO?
The initial public offer (IPO) of Shri Ram Twistex Ltd. offers an early investment opportunity in. A stock market investor can buy Shri Ram Twistex Ltd. IPO shares by applying in IPO before All Shri Ram Twistex Ltd. shares get listed at the stock exchanges. An investor could invest in Shri Ram Twistex Ltd. for short term listing gain or a long term.
How to apply for the Shri Ram Twistex Ltd.IPO through StoxBox?
To apply for the Shri Ram Twistex Ltd. IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Shri Ram Twistex Ltd. IPO open?
Shri Ram Twistex Ltd. IPO is opening on 23 Feb Jan 2026. Apply Now
What is the lot size of the Shri Ram Twistex Ltd. IPO?
The Lot Size of Shri Ram Twistex Ltd. IPO is 144 equity shares. Login to your account now.
When is the Shri Ram Twistex Ltd. IPO allotment date?
The allotment Date for Shri Ram Twistex Ltd. IPO is 26th Feb 2026. Login to your account now.
When is the Shri Ram Twistex Ltd. IPO listing date?
The listing Date for Shri Ram Twistex Ltd. IPO is 2nd Mar 2026. Login to your account now
What is the minimum investment required for the Shri Ram Twistex Ltd.IPO?
In the Retail segment the minimum investment required is Rs. 14,976. Login to your account now
What is the maximum investment allowed for the Shri Ram Twistex Ltd. IPO?
In the Retail segment the maximum investment requirement is Rs. 1,94,688. Login to your account now
What are the risks associated with investing in the Shri Ram Twistex Ltd. IPO?
- Revenue remains concentrated, with the top customer contributing 28.6%, 33.0%, 44.4% and 37.3% in 6M FY26, FY25, FY24 and FY23, respectively. Loss or reduced business from key customers could materially impact financial performance and cash flows.
- Geographic concentration in Gujarat, where the manufacturing facility, registered office, and a significant share of revenue are based, exposes operations to regional risks.
- Dependence on a limited supplier base for cotton bales makes the company vulnerable to supply disruptions and cotton price volatility, impacting costs and margins.
When will the Shri Ram Twistex Ltd. IPO shares be credited to my Demat account?
The Shri Ram Twistex Ltd. IPO be credited to the account on allotment date which is 26th Feb 2026. Login to your account now
Where can I find theShri Ram Twistex Ltd. IPO prospectus?
The prospectus of Shri Ram Twistex Ltd. IPO prospectus can be find on the website of SEBI, NSE and BSE
