Shree Ram Twistex IPO GMP Today, Price & Review 2026
Shree Ram Twistex IPO: Spinning Gold or Just Yarn? (Complete Review, GMP, Financial Analysis & Risk Breakdown 2026)
The Shree Ram Twistex IPO is coming at a time when the textile sector is trying to stabilize after years of margin pressure and cotton price volatility. Investors are asking the obvious question:
Is the Shree Ram Twistex Ltd IPO a smart margin-expansion story — or just another commodity textile play with cyclical risk?
This detailed, article covers everything you need to know about:
- Shree Ram Twistex IPO date
- Shree Ram Twistex IPO price band
- Shree Ram Twistex IPO GMP
- Financial performance
- Risk factors
- Objects of the issue
- Bull vs Bear case
- Long-term outlook
If you’re planning to apply through a reliable trading platform like Firstock – Discount broker, this guide will help you make an informed decision.
About Shree Ram Twistex Limited
Shree Ram Twistex Limited is a Gujarat-based textile manufacturing company engaged in the production of cotton yarn. The company operates from Gondal, located in the Rajkot textile belt, one of India’s major spinning clusters.
Core Products:
- Ring Spun Yarn
- Carded Yarn
- Combed Yarn
- Eli Twist Yarn (higher-quality variant)
Customer Base:
- Textile manufacturers
- Garment exporters
- Institutional B2B buyers
This is fundamentally a commodity-driven business. Yarn pricing is largely market-determined. There is limited brand differentiation, and companies compete on:
- Cost efficiency
- Quality consistency
- Delivery reliability
- Working capital management
That means margins can fluctuate significantly depending on cotton prices and power costs.
Shree Ram Twistex IPO – Key Details (Quick Snapshot)
This is not an SME IPO. The Shree Ram Twistex Ltd IPO is a mainboard issue listing on both BSE and NSE.
Shree Ram Twistex IPO GMP (Grey Market Premium)
The Shree Ram Twistex IPO GMP became active after the IPO price was fixed at ₹104.
Latest GMP Trend:
- ₹4 (3.85%) on 17-Feb
- ₹5 (4.81%) on 18-Feb
- Estimated Listing Price: ₹109
What Does This Mean?
Textile IPOs rarely create massive listing excitement compared to tech or defense IPOs. A GMP range of 3–5% indicates:
- Modest listing expectations
- Stable but not aggressive demand
- No strong speculative frenzy
The Shree Ram Twistex Ltd IPO GMP suggests cautious optimism rather than high conviction.
⚠ Note: Grey Market Premium is unofficial and volatile. It should not be the sole basis of your investment decision.
If you’re applying for IPOs regularly, using a seamless platform like Firstock – Trading App can simplify the bidding and tracking process.
Business Model: Understanding the “Spinning” Cycle
Shree Ram Twistex operates in a highly cyclical sector.
Revenue Drivers:
- Cotton prices
- Export demand
- Domestic textile consumption
- Power and fuel costs
- Working capital efficiency
Cotton prices can fluctuate due to:
- Global supply-demand imbalance
- Weather conditions
- Government export/import policies
When garment exports slow down, yarn orders fall. When cotton prices spike suddenly, margins get squeezed.
This is why textile businesses are known for:
- Thin margins
- High working capital requirements
- Cyclical profitability
Financial Analysis of Shree Ram Twistex Ltd IPO
Revenue Growth Trend
Revenue has steadily increased:
- FY23: ₹213.10 Cr
- FY24: ₹231.59 Cr
- FY25: ₹255.04 Cr
This shows moderate growth rather than explosive expansion.
Profitability Improvement
Margins improved significantly:
- 0.96% (FY23)
- 2.83% (FY24)
- 3.14% (FY25)
- 5.30% (H1 FY26)
This is notable in a textile business.
Possible reasons:
- Better product mix (Eli Twist yarn)
- Operational efficiency
- Cost control measures
If margins sustain above 5%, it could change the earnings profile meaningfully.
Debt Position
Debt reduced from FY24 to H1 FY26.
Lower debt means:
- Lower interest burden
- Better financial stability
However, textile businesses typically require working capital financing, so debt levels must be monitored continuously.
Cash Flow: The Real Story
One red flag appeared in FY24:
- Negative Cash Flow from Operations: -₹4.91 Cr
This indicates:
- Higher receivables
- Inventory build-up
- Working capital pressure
They turned it positive in FY25, which is encouraging.
But in a commodity business, cash flow matters more than accounting profits.
Investors must monitor:
- Receivable days
- Inventory turnover
- Working capital cycle
Objects of the Issue – Where IPO Money Will Be Used
Unlike IPOs that mainly repay debt, this issue has a strategic element.
1. Solar and Wind Power Projects
The company plans:
- 6.1 MW Solar Plant
- 4.2 MW Wind Power Plant
Why This Is Critical
Power is one of the largest costs in spinning mills.
By generating captive renewable energy:
- Electricity costs decline
- Margin stability improves
- Dependence on grid reduces
If executed properly, this could structurally improve profitability by FY27.
2. Debt Repayment
Approximately ₹14.89 Cr of borrowings will be repaid.
This reduces:
- Interest expense
- Financial risk
3. Working Capital Requirements
Funds will be used to:
- Purchase cotton
- Support daily operations
Given the working capital-heavy nature of textiles, this allocation is necessary.
Risk Factors – What Could Go Wrong?
1. Gujarat Concentration Risk
- Factory + Office + 87% revenue from Gujarat
Any local disruption such as:
- Floods
- Policy changes
- Industrial unrest
Could impact the entire business.
2. Customer Concentration
- Top 1 customer = 28.57% of revenue
Losing this client would significantly reduce revenue.
High dependency on a few customers increases risk.
3. Supplier Concentration
- Top 10 suppliers = 94% of cotton procurement
Any supply disruption or pricing pressure could affect margins.
Industry Outlook: Textile Sector in 2026
The Indian textile industry benefits from:
- Government PLI schemes
- China+1 sourcing shift
- Rising domestic consumption
However, challenges remain:
- Cotton price volatility
- Global demand fluctuations
- Currency risks
Shree Ram Twistex operates in a competitive landscape with limited pricing power.
Valuation Perspective
The IPO price band is capped at ₹104.
Investors must evaluate:
- Earnings sustainability
- Margin stability
- Textile cycle positioning
If H1 FY26 margins sustain, valuations could appear reasonable.
If margins revert to 2–3%, the stock could struggle.
Bull Case vs Bear Case
Bull Case
- Renewable energy lowers costs significantly
- Textile cycle turns positive
- Margins sustain above 5%
- Profit growth accelerates
Bear Case
- Cotton prices spike
- Global textile demand slows
- Top customer exits
- Margins compress
Who Should Consider Applying?
Suitable for:
- Moderate-risk investors
- Those comfortable with cyclical sectors
- Investors tracking textile revival
Not suitable for:
- High-growth investors
- Those seeking strong brand moat companies
Applying through a low-cost and efficient platform like Firstock – Trading App can make IPO participation easier.
Final Verdict: Should You Invest?
The Shree Ram Twistex IPO presents a steady, improving textile business with a smart renewable energy strategy.
Strengths:
- Margin expansion
- Debt reduction
- Strategic cost control
Risks:
- Commodity business model
- High customer concentration
- Geographic concentration
This IPO is not a hype-driven story.
It is a cyclical, margin-sensitive textile play.
If you understand textile cycles and are comfortable with moderate risk, this could be a calculated investment decision.
FAQs
1. What is the Shree Ram Twistex IPO open date?
February 23, 2026.
2. What is the Shree Ram Twistex IPO price band?
₹95 to ₹104 per share.
3. What is the latest Shree Ram Twistex IPO GMP?
Around ₹5, indicating an estimated listing near ₹109.
4. Is Shree Ram Twistex Ltd IPO an SME IPO?
No, it is a mainboard IPO.
5. What does Shree Ram Twistex Private Limited do?
Manufactures cotton yarn including ring spun, carded, combed, and Eli Twist yarn.
6. Is the company profitable?
Yes, profits have improved significantly over the past three years.
7. What are the main risks?
Customer concentration, Gujarat concentration, cotton price volatility.
8. Where will IPO funds be used?
Solar plant, wind plant, debt repayment, and working capital.
9. Is Shree Ram Twistex IPO good for listing gains?
GMP suggests modest listing expectations.
10. Is this suitable for long-term investment?
Only if margins sustain and textile demand improves.
Disclaimer: Investments in the securities market are subject to market risks. Read the Red Herring Prospectus (RHP) carefully before investing. Grey Market Premium (GMP) is unofficial and may change rapidly.
