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The Shree Ram Twistex IPO enters Day 3 with strong investor interest. Check latest GMP, subscription status, price band, company fundamentals, and expert review to decide whether to apply.
Illustration: Dominic Xavier/Rediff.com
Key Points
- Shree Ram Twistex IPO subscription closed with strong demand across retail and non-institutional investor categories.
- The IPO price band was fixed at ₹95 – ₹104 per share, with a minimum lot size of 144 shares.
- Grey Market Premium (GMP) for Shree Ram Twistex IPO rose significantly, indicating a potential listing price above the IPO upper band.
- Shree Ram Twistex plans to use IPO proceeds for renewable energy capacity addition, debt repayment, and working capital funding.
- Analysts have mixed reviews on the IPO, with some recommending subscription based on growth potential, while others caution about rich valuation.
The Shree Ram Twistex Limited IPO has entered Day 3 of its subscription period, with strong indicators of demand from investors.
On the final day of bidding, the issue has seen robust participation across categories, including retail and non-institutional investors, highlighting growing confidence in the offering.
Subscription figures and demand metrics are being closely monitored as the IPO approaches its close on February 25, 2016.
As of the midday trading on Day 3, the overall subscription was tracking well ahead of earlier days, signaling stronger appetite compared to Day 1 and Day 2.
This improved subscription trend shows a noticeable shift in investor sentiment as the issue progresses, with more bids being placed before the deadline.
As the IPO entered its third and last day of bidding the company is looking to raise ₹110.24 crore.
Latest GMP, Price Band and Lot Size Details
The IPO price band has been fixed at ₹95 – ₹104 per share. This is the range at which investors can bid for the issue.
As of 1.30 pm, Qualified Institutional Buyer (QIB) segment was subscribed 1.12 times with overall IPO booked over 18 times.
Shree Ram Twistex IPO Grey Market Premium (GMP)
On Day 3 of subscription, the GMP rose significantly, with unofficial grey market indications showing premiums up to around ₹16.5 – ₹18 per share, suggesting a potential listing price well above the IPO upper band.
Note: GMP is an unofficial, speculative indicator of expected listing gains and not an official or guaranteed figure.
Lot Size & Minimum Investment
The minimum lot size for the IPO is 144 shares.
At the upper end of the price band (₹104), this means a minimum investment of approximately ₹14,976 per bid
Company Overview and Growth Prospects
Shree Ram Twistex operates in the textile manufacturing segment, specializing in cotton yarn production and other related products. The company’s business model focuses on B2B supply to domestic manufacturers and exporters, which positions it to benefit from both domestic demand growth and export opportunities.
Financially, the firm has recorded steady revenue growth in recent years and plans to use the IPO proceeds for strategic initiatives like renewable energy capacity addition, debt repayment, and working capital funding.
Such investments aim to reduce operational costs and strengthen long-term competitiveness in the textile space.
Expert Review: Should You Apply to the IPO?
Market analysts and brokerage reviews for the Shree Ram Twistex IPO are mixed, reflecting differing views on valuation and growth potential. Some experts have assigned a “subscribe” rating based on the company’s established customer base, industry presence, and growth catalysts such as cost efficiency and demand expansion, seeing long-term value for investors.
Conversely, other analysts caution that the IPO valuation appears rich compared to some listed peers, which could limit near-term upside for risk-averse investors. They recommend that only long-term, high-risk investors consider subscription, while those seeking short-term listing gains or conservative entry may exercise greater caution.
