Shree ram limited -IPO

Company Overview

Shree Ram Twistex Ltd manufactures polyester textured yarn (PTY), used in making clothes and fabrics. The company twists and textures polyester to create strong threads for textile industry.

READ FULL DRHP HERE: SHREE RAM DRHP

IPO Details

Detail Information
Issue Open Date February 25, 2026
Issue Close Date February 27, 2026
Listing Date March 3, 2026 on NSE SME
Price Band ₹83 to ₹88 per share
Face Value ₹10 per share
Lot Size 1,600 shares (min 2 lots/3,200 shares)
Minimum Amount for Retail ₹2,81,600 (upper price)
Total Size 35,20,000 shares (₹31 crores)
Fresh Issue 35,20,000 shares (₹31 crores)
Offer For Sale None
Market Maker 1,76,000 shares

Retail 35%, HNI 35%, QIB 25%.​

REGISTRAR: CLICK HERE

Use of IPO Money

The company will use the money raised (net proceeds from fresh issue) in these simple ways:

  • ₹14.89 crores to repay some loans.
  • ₹44 crores for working capital (raw materials, daily running).
  • ₹38.89 crores total + general needs.

This reduces debt and supports growth.​

Key Financials and Growth

Period Total Income (₹ Cr) Profit After Tax (PAT, ₹ Cr) EBITDA (₹ Cr) EBITDA Margin (%) Net Worth (₹ Cr) Borrowings (₹ Cr) Debt to Equity
Sep 30, 2025 (H1 FY26) 132.27 7.00 17.04 12.90 80.70 60.70 0.75
Mar 31, 2025 256.32 8.00 21.85 8.57 74.03 62.48 0.84
Mar 31, 2024 231.72 6.55 20.19 - 66.80 67.04 - ​
Mar 31, 2023 213.58 2.05 17.40 - 61.11 55.70 -

Income steady ~₹230 Cr. PAT up from ₹2 Cr to ₹8 Cr. ROCE 10.74-13.37%, PAT margin 3-5%.

Strengths

  • Steady sales ~₹230 Cr yearly.
  • PAT growth (₹2 Cr FY23 to ₹8 Cr FY25).
  • Debt/equity low 0.75-0.84.
  • Funds repay debt + working capital.
  • ROCE 13% good for textile.

Key Concerns and Risks

  • Thin PAT margins 3-5%.
  • Debt ₹60 Cr (interest burden).
  • Textile competition, raw material prices.
  • SME low liquidity.
  • Slow growth in sales

IPO FAQS

What is an IPO?

  • An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
  • Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.

How can you apply for an IPO (using Zerodha or Upstox)?

  • Make sure you have a Demat account and your bank account is linked.
  • Steps:
    • Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
    • Go to the IPO section.
    • Select the company’s IPO you want to apply for.
    • Enter how many shares (or ‘lots’) you want and the price you wish to bid.
    • Enter your UPI ID, submit your application, and approve the UPI payment request.

How are IPO shares allotted?

  • If more people want shares than are available, the company uses a lottery system to decide who gets them.
  • If you don’t get shares, your money is simply returned.

What is GMP (Grey Market Premium)?

  • GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
  • Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.

Where to check upcoming IPOs (IPO calendar)?

  • Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.

What are IPO listing gains?

  • If the share’s price rises on the first trading day, you can make instant profit.
  • Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.

How can you make profit from an IPO?

  • Quick gains on listing day (if the stock price goes up).
  • Long-term: If the company grows, the share price could increase further.

Which IPO is best to buy?

  • There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
  • High GMP or popularity doesn’t guarantee profits.

Are IPOs safe?

  • IPOs can be profitable but also risky; prices can go up or down sharply.
  • Only invest if you are ready for potential losses.

How to check IPO allotment status?

  • After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.

Important Tips for Retail Investors Applying for an IPO

  • Use Only Your Own PAN Card:
    Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others.
  • Apply in the Right Category:
    Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification.
  • Maintain Sufficient Bank Balance:
    Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount.
  • Use Your Own Bank Account:
    Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process.
  • Avoid Last-Minute Applications:
    Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.