Shree Ram Twistex IPO received an overwhelming response from non-institutional investors (NIIs), who subscribed 220.30 times their allotted quota. Retail investors followed with a subscription of 76.63 times.
Qualified institutional buyers (QIBs) subscribed 3.94 times their portion. By the end of the third day of bidding, the IPO subscription status stood at 43.66 times, as per exchange data.
The public issue had reserved 75% of shares for QIBs, 15% for NIIs, and 10% for retail investors. Such heavy oversubscription typically signals strong market appetite, particularly in the high-net-worth investor segment.
GMP Signals Discounted Listing
Despite solid subscription figures, grey market premium (GMP) trends suggest caution. The current Shree Ram Twistex IPO GMP stands at ₹-23. Based on the upper end of the price band at ₹104 per share, the estimated listing price is around ₹81.
This indicates a potential discount of approximately 22.12% compared to the issue price. Over the past 16 sessions of grey market activity, GMP has shown a downward trend. The minimum GMP recorded was ₹-23, while the maximum touched ₹13.50.
Market experts often view GMP as an informal indicator of investor sentiment. However, it does not guarantee actual listing performance and should not be the sole basis for investment decisions.
IPO Price Band and Fund Utilisation
The company fixed the Shree Ram Twistex IPO price band at ₹95 to ₹104 per share. Through the fresh issue of 1.06 crore equity shares, the company aims to raise ₹110.24 crore.
A significant portion of the proceeds, ₹39 crore, will be invested in setting up a 4.2 MW wind power facility for captive consumption. This move is expected to reduce energy costs and improve operational efficiency.
Additionally, ₹14.89 crore will be used to repay certain borrowings, while ₹44 crore will be allocated toward meeting working capital requirements. The remaining funds will be utilised for general corporate purposes.
About the Company
Shree Ram Twistex operates in the cotton yarn manufacturing segment. The company supplies yarn products catering to various textile applications, serving both domestic and export markets.
The planned wind energy project aligns with broader sustainability efforts within the textile sector. Investors often assess such initiatives as long-term cost-saving and ESG-positive strategies.
What Investors Should Watch
The listing performance will depend on broader market sentiment and investor appetite on debut day. While strong subscription figures reflect initial enthusiasm, grey market trends suggest possible short-term pressure.
Investors are advised to consider fundamentals, valuation, and long-term growth prospects rather than relying solely on listing gains. Analysts also recommend reviewing company disclosures and risk factors before making investment decisions.
With its debut around the corner, all eyes are now on how Shree Ram Twistex shares perform when trading begins on March 2.