Shree Ram Twistex IPO Listing Disappoints Investors

On March 2, Shree Ram Twistex made its debut in the Indian stock market with shares listing at a massive 35% discount to the initial public offering (IPO) price of ₹104.

Listing Performance

On the National Stock Exchange (NSE), Shree Ram Twistex share price listed at ₹68, down 34.62%, or ₹36, from the offer price. On the BSE, the share price debuted at a 32.69% discount at ₹70.

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Market Conditions

The weak debut coincided with the Indian stock market crash following the US-Iran war and a spike in crude oil prices. The BSE Sensex lost as much as 2700 points at the open, while the Nifty 50 plunged to below 24,650 levels.

IPO Details

The IPO demand for the ₹100-crore public offering was robust, with the company garnering bids for 46,28,41,632 shares as against 1,06,00,000 shares on offer, resulting in 43.66 times bids. The non-institutional investor (NII) quota was subscribed the most at 220.30 times, followed by the retail portion at 76.63 times.

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IPO Timeline

The offer, open for bidding from February 23-25, was entirely a fresh share sale of 1.06 crore shares, priced in the range of ₹94 to ₹104 apiece. Investors could apply in lot sizes of 144 shares.

Company Overview

Shree Ram Twistex is engaged in the manufacturing of cotton yarns, including compact ring spun and carded yarns, both combed and carded. Its product portfolio also includes value-added yarns such as Eli Twist (combed and carded), compact slub yarns, and Lycra-blended yarns.

Financial Information

The company plans to use the proceeds from the funds raised for setting up the 6.1 MW and 4.2 MW solar and wind power plants, along with repayment of debt and other working capital needs.