Summary of this article
Shree Ram Textiles filed its red herring prospectus with Sebi
The IPO will consist of 10.6 million each of fresh shares and OFS
Shree Ram Textiles, a cotton-yarn manufacturer based out of Gujarat, has filed its updated papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The IPO consists of both a fresh issue of shares as well as an offer-for-sale (OFS) component.
Shree Ram Twistex IPO: Offer Size
The company aims to issue 10.60 million fresh equity shares with a face value of Rs 10 each. Along with this, it is also offering an equal amount of existing shares on offer.
Shree Ram Twistex IPO: Key Financials
According to the red herring prospectus (RHP) filed with Sebi, Shree Ram Twistex made a net profit of Rs 700.02 lakh for the period of six months till September 2025, and an operating revenue of Rs 13,208.48 lakh during the same period. For the financial year ended March 2025, the company earned an operating revenue of Rs. 25,504.47 lakh, against Rs. 23,159.12 lakh made in the previous fiscal. In FY25, the company earned a net profit of Rs. 937.57 lakh, marginally lower than Rs. 962.54 lakh in the previous fiscal.
Shree Ram Twistex IPO: Business Model
Shree Ram Twistex, was incorporated in 2013 and manufactures pure cotton compact ring-spun combed and carded yarns. These yarns, which are used in knitting and weaving , are made in its facility in Rajkot, Gujarat, and comprises 17 compact ring-spinning machines which have a total spindle count of 27,744.
The company operates only in a business-to-business (B2B) segment, and supplied products to textile manufacturers, garment exporters, bulk purchasers as well as fabric processors.
Shree Ram Twistex IPO: Competitors
The company has several competitors, such as Ambika Cotton Mills, Damodar Industries, and Rajapalayam Mills. Companies such as Orbit Exports which is publicly listed in India is also a peer of the company.
Shree Ram Twistex IPO: Should You Apply?
Here are the key strengths and risks according to the RHP of Shree Ram Twistex one should consider before deciding whether or not to apply for the company’s public issue:
Shree Ram Twistex: Key Risks
Here are the key risks of Shree Ram Twistex:
The operating revenue of the company is largely derived from its mill operating in Gujarat. The company is vulnerable to any risks due to geographical concentration of its operations.
The company has faced a negative cash flow from operations in FY24. This too poses a risk for the company.
Shree Ram Twistex: Key Strengths
Here are the key strengths of Shree Ram Twistex:
The company has a long-standing relationship with several institutional clients, which includes Welspun Living and Jindal Worldwide.
According to the RHP, the company also operates in a fully integrated spinning facility. The company holds all stages of yarn production under one roof and has nearly a decade of experience in the same.
Shree Ram Twistex IPO: Objective
Through the net proceeds of the fresh issue, the company aims to set up a 6.10 MW solar power plant, for Rs 7.80 crore. Further, Rs 39 crore will be used for setting up a 4.20 MW wind power plant for captive use. Additionally, Rs 14.89 crore will be used for reducing its debt and another Rs 44 crore for working capital requirement.
