The initial public offering (IPO) of Shree Ram Twistex Limited, which opened for bidding on Monday, Feb. 23, has entered its second day of subscription.
The Gujarat-based cotton yarn manufacturer aims to raise Rs 110.24 crore from the primary market. The public issue is entirely a fresh issue of 1.06 crore shares, with no offer-for-sale (OFS) component. As the bidding process reaches its midpoint, investors are closely watching the subscription momentum and grey market trends.
Shree Ram Twistex IPO GMP
The grey market premium (GMP) for the Shree Ram Twistex IPO stood at Rs 9 per share on Feb. 24. Compared to the upper limit of the issue price of Rs 104 apiece, the latest GMP indicates an estimated listing price of Rs 113, representing a premium of 8.65% per share.
Note: GMP does not represent official data and is based on speculation in the unlisted market.
Subscription Status and Price Band
The IPO has seen varied interest across investor categories. Here is the subscription breakdown as of 11:42 a.m.
Total Subscription: 26%
Retail Investors: 1.84x
Non-Institutional Investors (NIIs): 52%
Qualified Institutional Buyers (QIBs): Nil
The price band for the issue has been fixed at Rs 95 to Rs 104 per share. Retail investors can participate by applying for a minimum lot size of 144 shares, amounting to an investment of Rs 14,976. For Small NIIs (sNII), the minimum application is 14 lots (Rs 2,09,664), while Big NIIs (bNII) must apply for at least 67 lots (Rs 10,03,392).
Allotment and Listing Dates
The company is expected to finalise the share allotment status on Feb. 26. Following the allotment, refunds for non-allottees and the credit of shares to demat accounts will occur on Feb. 27. Shree Ram Twistex shares are scheduled to debut on the NSE and BSE on March 2.
About Shree Ram Twistex Limited
Incorporated in 2013, Shree Ram Twistex is a Rajkot-based manufacturer of 100% cotton yarns, including compact ring-spun and carded yarns. Its products are essential components for various textile applications such as denim, home textiles, and shirting.
The company intends to use the net proceeds from the IPO for:
Setting up a 6.1 MW Solar Power Plant and a 4.2 MW Wind Power Plant for captive use.
Repayment or prepayment of certain borrowings.
Funding working capital requirements and general corporate purposes.
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