Shree Ram Twistex IPO listing: Shares of Shree Ram Twistex made a disappointing debut in the Indian stock market on Monday, March 2, as they listed at a massive 35% discount to the initial public offering (IPO) price of ₹104.
On the National Stock Exchange (NSE), Shree Ram Twistex share price listed at ₹68, down 34.62%, or ₹36, from the offer price. At the same time, on BSE, Shree Ram Twistex share price debuted at a 32.69% discount at ₹70.
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.
The listing was below expectations as signalled by the grey market premium (GMP). Shree Ram Twistex IPO GMP today was – ₹28, suggesting a debut at a discount of 27%.
As of 10.13 am, Shree Ram Twistex share price rebounded slightly on the NSE and was up 2.5% from the listing price.
Shree Ram Twistex IPO details
The IPO demand for the ₹100- crore public offering was robust as the company garnered 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. Meanwhile, the QIB segment saw 3.94 times subscription.
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.
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.
The allotment for Shree Ram Twistex IPO was finalised on February 26. The shares were debited to the accounts of the allottees on February 27, and the refund was initiated to non-allottees on the same day.
Interactive Financial Services is the book-running lead manager, and Bigshare Services is the registrar of the issue.
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.
These yarns are used in knitting and weaving applications across denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics.
Welspun Living Limited and Jindal Worldwide Limited are some of the company’s customers.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
