Shree Ram Twistex
- Shree Ram Twistex is coming out with a 100% book building; initial public offering (IPO) of 1,06,00,000 shares of Rs 10 each in a price band Rs 95-104 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on February 23, 2026 and will close on February 25, 2026.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.40 times on the higher side.
- Book running lead manager to the issue is Interactive Financial Services.
- Compliance Officer for the issue is Sejal Tapan Gajjar.
Profile of the company
Shree Ram Twistex is engaged in the manufacturing of Cotton Yarns, including Compact Ring Spun and Carded Yarns, both Combed and Carded. Its product range also includes value-added yarns such as Eli Twist (Combed and Carded), Compact Slub Yarns, and Lycra-Blended Yarns. The company’s Yarns are used in both knitting and weaving, serving a broad range of end-use segments such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics.
The company operates exclusively in the business-to-business (B2B) segment, supplying its products to institutional buyers such as textile manufacturers, garment exporters, bulk purchasers and fabric processors. Its exclusive B2B focus allows it to streamline its production and supply chain processes around the needs of large-scale buyers, ensuring consistent quality, delivery, and efficient order fulfilment. B2B segment also allows it to build long-term client relationships and offer customized yarn solutions tailored to specific technical parameters including count, twist, and strength.
The company’s operations also generate income from by-products such as cotton waste, which is sold to industries manufacturing non-woven fabrics and open-end yarns. It also sells Viscose-Cotton Mix Yarn, FP Bales, and Open-End Yarn, catering to varied textile segments. These products are sold to fabric manufacturers, weaving units, and traders, based on specific customer needs.
Proceed is being used for:
- Funding for setting up of 6.1 MW Solar Power Plant for captive use (Solar Power Project)
- Funding for setting up of 4.2 MW Wind Power Plant for captive use (Wind Power Project)
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company
- Funding the working capital requirements of the company
- General corporate purposes
Industry Overview
India ranks as the 6th largest exporter of textiles and apparel globally, with the sector, including handicrafts, accounting for a significant 8.21% of the country's total exports in 2023-24. India holds a 3.91% share in the global textile and apparel trade. The USA and the European Union are the primary export destinations, collectively making up approximately 47% of India's total textile and apparel exports. The industry plays a crucial role in employment, directly providing jobs to over 45 million people and supporting the livelihoods of more than 100 million individuals indirectly, including a substantial number of women and rural workers. The sector aligns seamlessly with key government initiatives such as Make in India, Skill India, Women Empowerment, and Rural Youth Employment. The textile sector is expected to benefit from government policies focused on increasing exports and improving competitiveness.
Cotton is a significant commercial crop in India, contributing approximately 23% of global cotton production. It supports the livelihood of around 6 million cotton farmers and 40-50 million people involved in related activities such as cotton processing and trade. The Indian textile industry utilizes a variety of fibres and yarns, with a cotton-to-non-cotton fibre usage ratio of about 60:40, compared to 30:70 globally. India has the largest cotton acreage globally, with 130.61 lakh hectares under cultivation, covering about 40% of the world's total cotton-growing area of 324.16 lakh hectares. Around 67% of India's cotton is grown in rain-fed regions, while 33% is cultivated on irrigated land. In terms of productivity, India ranks 39th, with a yield of 447 kg/ha. India is the only country that cultivates all four species of cotton: Gossypium arboreum and Gossypium herbaceum (Asian cotton), Gossypium barbadense (Egyptian cotton), and Gossypium hirsutum (American Upland cotton). Gossypium hirsutum accounts for 90% of hybrid cotton production in India, and all current Bt cotton hybrids belong to this species.
India's cotton yarn industry plays a pivotal role in the textile value chain, with the majority of its production catering to domestic demand. Cotton textiles has been the dominant textile segment in India, and it is expected to retain its preeminent position as textile material of choice in the coming years too. Thus, the domestic demand for cotton yarn is expected to remain strong, both from domestic market as well as exports. Accordingly, the domestic production of cotton yarn is expected to grow at a faster rate in the coming years, and annual production is expected to touch nearly 5 million tons by FY 2030, up from the current level of nearly 3.8 million tons (as on FY 2024).
Pros and strengths
Fully integrated spinning infrastructure with modern technologies to support a diversified and value added product portfolio: The company operates a fully integrated spinning manufacturing facility that brings together all key stages of yarn production under one roof, from procurement of raw cotton to finished yarn packaging. This end-to-end integration includes processes such as cotton bale procurement, cleaning, carding, combing, spinning, winding, and final packaging. By centralizing operations within a single location, it minimizes material handling, reduce production lead times and enhance coordination across process stages. This results in process control, increased operational efficiency, and better consistency in output quality.
Long standing relationships with key customers and are supported by a network of brokers and agents: With nearly a decade of experience in the textile industry, it has established cordial relationships with key customers and independent third-party brokers and agents. As of September 30, 2025, the company is associated with 8 third-party brokers and agents who play a pivotal role in facilitating its sales efforts. These intermediaries primarily serve as a link between the company and customers, especially institutional buyers, bulk purchasers, and merchant exporters. Although its products are sold directly to customers pursuant to their purchase orders, these transactions are frequently designed and arranged through its brokers and agents. Their contributions include identifying prospective customers, initiating business leads, and assisting in the finalization of sales orders. This model enables it to maintain a lean internal sales structure while leveraging the market reach and relationships of its agents and broker network.
Strategically located manufacturing facility with adequate storage facility: The company’s Manufacturing Facility spans a total land area of approximately 29,947 sq. m, with built-up area covering 10,167.94 sq. m i.e. 33.95% of the total land. As of September 30, 2025, the facility has an installed capacity of 9,855 MT per annum, leaving substantial space for future growth and expansion. Moreover, its Manufacturing Facility is strategically located in Gondal, District Rajkot, Gujarat, offering direct access to a well-established ecosystem of raw material suppliers, logistics providers, and skilled labor. This geographic advantage streamlines procurement, production scheduling, and delivery timelines. Additionally, close proximity to local ginning and spinning units ensures a steady supply of raw cotton, enhancing operational flexibility and raw material management.
Track Record of healthy growth: Onwards year 2017, it has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from Rs 6,278.65 lakh in Fiscal 2017 to Rs 23,159.12 lakh in Fiscal 2024. Similarly, its profit after tax has grown from a loss of Rs 225.06 lakh in Fiscal 2017 to a net profit of Rs 655.25 lakh in Fiscal 2024. The significant growth of its business during the six-month period ended September 30, 2025 and the last three Fiscals have contributed significantly to its financial strength.
Risks and concerns
Limited customer base exposure: A major portion of the company’s revenue from operations is dependent upon a limited number of customers. For instance, its top 1 customer contributed 28.57%, 32.97%, 44.35% and 37.26% of its total revenue during the six-month period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023. Loss of any of its key customers or loss of revenue from any of such customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Regional concentration risk in Gujarat: The company’s Manufacturing Facility and Registered Office are located in Gujarat, and a significant portion of its revenue is also derived from this state. The company has garnered 87.72%, 93.48%, 83.14% an 85.59% of its total revenue during the six-month period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 from the state of Gujarat. As a result, the company is exposed to geographic concentration risks that may adversely affect its operations, financial condition, and results of operations.
High dependence on limited cotton suppliers: The company is dependent on a limited number of suppliers for procurement of cotton bales. The company has procured 81.72%, 73.31%, 61.71% and 47.58% of cotton bales from top 5 suppliers during the six-month period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023. Its principal raw material, and any disruption in supply or adverse movement in cotton prices may materially affect its business, results of operations, and financial condition.
High exposure to spinning industry cyclicality: A significant portion of the company’s revenue is derived from Carded Cotton Yarn, Combed Cotton Yarn, and ELI Twist Yarn. Any decline in demand, pricing pressures, or adverse developments in the spinning or textile industry could materially and adversely impact its business, financial condition, and results of operations.
Outlook
Shree Ram Twistex manufactures cotton yarns, including Compact Ring Spun and Carded Yarns, both Combed and Carded. The yarns are used in both knitting and weaving for various products, such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. The company has fully integrated spinning infrastructure with modern technologies. The company has strategically located manufacturing facility with adequate storage facility. On the concern side, a significant portion of its revenue is concentrated among few key customers and loss of any of its key customers or loss of revenue from any of such customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. The company’s Manufacturing Facility and Registered Office are located in Gujarat, and a significant portion of its revenue is also derived from this state. As a result, the company is exposed to geographic concentration risks that may adversely affect its operations, financial condition, and results of operations.
The issue has been offering 1,06,00,000 shares in a price band of Rs 95-104 per equity share. The aggregate size of the offer is around Rs 100.70 crore to Rs 110.24 crore based on lower and upper price band respectively. Minimum application is to be made for 144 shares and in multiples thereon, thereafter. On performance front, the company’s total revenue from operations for FY 2024-25 was Rs 25504.47 lakh which is increased by 10.13% in comparison to FY 2023-24 total revenue of operation of Rs 23159.12 lakh. Moreover, the company’s PAT is Rs 799.59 lakh for FY 2024-25 as compared to Rs 655.25 lakh in FY 2023-24.
The company is an environmentally conscious organization with a strong commitment to integrating sustainable practices into its operations. Recognizing the long-term environmental and economic benefits of renewable energy, it has taken significant steps to reduce its dependence on conventional power sources and move toward a cleaner energy future. Further, the business model is based on client relationships that are established over period of time rather than an order-based execution approach. Long-term client relationship fetches better dividends. Long-term relations are built on trust and continuous satisfaction of the customers. It helps understanding the basic approach of the company, its products and its market. It also forms basis of further expansion for the company, as it is able to monitor a potential product/ market closely. It intends to focus on expanding its customer base and forming new long-term relations with its customers and brokers by catering to their needs and demands in a timely, efficient and effective cost-effective manner.
