Shree Ram Twistex IPO: Check IPO Date, Lot Size, Price & Details

Overview

Shree Ram Twistex Limited is a cotton yarn manufacturing company engaged in the production of high-quality 100% cotton yarns catering exclusively to the business-to-business (B2B) segment. The Company specialises in manufacturing Compact Ring Spun and Carded Yarns, available in both combed and carded varieties. Over the years, it has developed capabilities in producing value-added yarns, including Compact Eli Twist (Siro) Yarns, Compact Slub Yarns, and Lycra-Blended Yarns, serving diverse downstream textile applications.

The Company’s product portfolio is designed to cater to a wide spectrum of end-use industries within the textile value chain. Its yarns are used in knitting and weaving applications across segments such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. By focusing exclusively on institutional buyers such as textile manufacturers, garment exporters, fabric processors, and bulk purchasers, the Company aligns its operations with the specific technical and volume requirements of large-scale customers. This B2B-oriented model enables streamlined production planning, consistent quality standards, reliable delivery schedules, and customised yarn specifications tailored to parameters such as count, twist, and strength.

Shree Ram Twistex operates a dedicated manufacturing facility located in Gondal, Rajkot, Gujarat. The plant houses 17 compact ring-spinning machines with a total spindle capacity of 27,744 spindles, reflecting a structured and focused production setup. The Company manufactures cotton yarns in counts ranging from Ne 8 to Ne 40, covering both carded and combed variants. (Ne, or English Cotton Count, is a standardised measure of yarn fineness, where a higher count denotes a finer yarn.)

In addition to single yarns, the Company produces Compact Eli Twist (Siro) yarns, Compact Slub Yarns, which impart textured effects to fabrics, and Lycra-blended yarns that combine stretch and comfort, catering to segments such as activewear and fitted garments.

Beyond its core cotton yarn offerings, the Company generates additional revenue from by-products such as cotton waste, which is supplied to manufacturers of non-woven fabrics and open-end yarns. It also deals in Viscose-Cotton Mix Yarn, FP Bales, and Open-End Yarn to address varied requirements across textile segments. These products are sold to fabric manufacturers, weaving units, traders, and other institutional customers based on specific demand.

Geographically, the Company serves both domestic and overseas markets. International sales are facilitated through merchant exporters, who procure products domestically and export them under their own name. These merchant exporters manage export documentation, compliance requirements, and global trade logistics, enabling the Company to access overseas markets efficiently without assuming significant logistical complexities. Domestically, the Company undertakes direct sales to institutional customers and leverages a network of brokers and agents who act as intermediaries, enhancing market penetration and localised customer engagement.

Overall, Shree Ram Twistex Limited operates as a focused cotton yarn manufacturer with integrated production capabilities, a diversified value-added product mix, and a dual-channel distribution strategy, positioning it as a specialised B2B player within the textile yarn industry.

IPO Details

Use of Funds

• Setting up a 6.1 MW Solar Power Plant for captive use
• Setting up a 4.2 MW Wind Power Plant for captive use
• Repayment and/or pre-payment of certain borrowings
• Funding working capital requirements
• General corporate purposes

Key Strengths

• Fully Integrated and Technologically Advanced Manufacturing Infrastructure
  The Company operates a fully integrated spinning facility covering the entire yarn production process from raw cotton procurement to finished packaging. Its compact ring spinning technology enhances fibre alignment, reducing hairiness and breakage while improving yarn strength and uniformity. Advanced machinery sourced from reputed European manufacturers supports precision and quality control. The commissioning of in-house TFO (Two-for-One) twisting machines will further strengthen vertical integration and value-added product capability. Climate-controlled infrastructure and dedicated storage facilities ensure fibre preservation, efficient inventory management, and consistent production quality, enhancing operational efficiency and scalability.
• Strong Customer Relationships Supported by Broker Network
  With nearly a decade of industry presence, the Company has built long-standing relationships with institutional customers and bulk purchasers. It is supported by a network of 8 third-party brokers and agents who assist in lead generation and order facilitation while sales are executed directly. This hybrid model enables broader market reach while maintaining a lean internal sales structure. A meaningful share of revenue is derived from repeat customers, reflecting product acceptance and reliability. The Company’s emphasis on customisation and quality strengthens client retention and supports sustained business relationships across domestic and export segments.
• Strategic Location with Expansion Potential and Efficient Storage
  The manufacturing facility in Gondal, Rajkot, Gujarat, spans approximately 29,947 sq. meters, with significant unutilized land available for future expansion. Located within a well-established textile ecosystem, the facility benefits from proximity to raw material suppliers, ginning units, logistics providers, and skilled labour. Connectivity through National Highway 47, rail networks, and Rajkot International Airport enhances supply chain efficiency. The facility is supported by an organised storage infrastructure with controlled conditions for raw materials and finished goods, ensuring inventory discipline, minimized wastage, timely dispatches, and reliable fulfilment of customer commitments.

Key Risks

• Customer Concentration Risk
  A significant portion of the Company’s revenue is derived from a limited number of customers, with the top customer contributing a substantial share of total revenue in recent periods. The Company operates largely on a purchase-order basis, with limited long-term contractual commitments, increasing exposure to order volatility. Any reduction, delay, or discontinuation of orders from key customers due to commercial disagreements, financial distress, competitive pressures, or strategic shifts could materially impact revenue, profitability, and cash flows. High customer concentration limits revenue diversification and may adversely affect production planning and business stability.
• Geographical Concentration Risk
  The Company’s manufacturing facility and registered office are located in Gujarat, and a majority of its revenue is generated from the same state. This geographic concentration exposes operations to regional risks such as regulatory changes, infrastructure bottlenecks, labour unrest, natural disasters, public health emergencies, or socio-political disruptions. Any significant interruption in Gujarat could directly affect production, supply chain efficiency, and customer servicing. The absence of operational diversification across multiple states increases vulnerability to localised disruptions, potentially impacting revenue continuity, order fulfilment capability, and overall financial performance.
• Raw Material and Supplier Concentration Risk
  Cotton bales constitute the principal raw material and account for a major portion of production costs. The Company sources cotton through a relatively concentrated supplier base and largely relies on spot purchases and short-term arrangements. Cotton prices are inherently volatile due to climatic conditions, government policies, global commodity trends, and geopolitical developments. Any disruption in supply, deterioration in cotton quality, logistical challenges, or sharp price fluctuations could affect cost structure and production schedules. Limited ability to pass on raw material cost increases to customers may lead to margin compression and adversely impact profitability.

Financial Snapshots

Peer Comparison

Conclusions

Shree Ram Twistex Ltd. is a mid-sized B2B cotton yarn manufacturer with integrated spinning operations and a diversified value-added product portfolio. The Company has demonstrated steady revenue growth, stable operating margins, and manageable leverage levels. IPO proceeds aimed at renewable energy projects, debt reduction, and working capital are expected to improve cost efficiency and strengthen the balance sheet. However, risks include customer concentration, geographic concentration in Gujarat, and cotton price volatility. Overall, it represents a stable but cyclical textile play, with margin expansion and scale efficiency being key drivers for future growth.

IPO Allotment

Find out the allotment status for the Shree Ram Twistex IPO by checking its registrar's page.