- Key Facts and First-Day Trends
- Post-IPO Valuation Check
- Should You Hold or Sell Now?
- What Investors Should Track Now
- Final Take
An IPO subscribed 43.66 times should not list at a 34.62% discount. And yet, that is exactly what happened with Shree Ram Twistex. The reasons are worth understanding, especially if you are sitting on an allotment wondering what to do next.
This blog breaks down Shree Ram Twistex's shocking listing, the valuation reality post-listing, and clear, practical guidance for investors.
Key Facts and First-Day Trends
- IPO Price: ₹104 per share
- Listing Price: ₹68 per share (34.62% below issue price on NSE)
- Market Capitalization (at listing): ₹272 crore
- Track the live share price of Shree Ram Twistex here.
Post-IPO Valuation Check
- P/E at listing price: At ₹68, using annualised H1 FY26 earnings, the P/E (price-to-earnings, meaning how many rupees you pay per ₹1 of yearly profit) drops to 19.42x from the IPO's 29.69x. That is more reasonable but still a premium versus peers.
- Peer comparison on P/E: Ambika Cotton Mills trades at 11.37x and Damodar Industries at 14.09x. Even at the listing price, Shree Ram Twistex is pricier than both, which limits the "it's cheap now" argument.
The listing wiped out roughly ₹143 crore of implied market cap versus the IPO price, bringing valuation closer to sector reality, though not yet at a discount to peers.
Should You Hold or Sell Now?
- Short-term trader: The 34.62% listing loss is already done. If you received allotment and were hoping for a quick listing gain, that thesis has clearly failed. Continuing to hold, hoping for a fast bounce in a geopolitically volatile market, adds risk without strong near-term catalysts.
- Medium-term investor (6-12 months): Consider whether the solar and wind capex story (6.1 MW solar partly live, 4.2 MW wind planned) can translate into lower power costs and better margins. If the coming quarterly results confirm that the H1 FY26 EBITDA margin of 12.9% is holding, the story becomes more credible.
- Long-term investor (2+ years): The business fundamentals are not broken. Revenue grew from ₹213.58 crore (FY23) to ₹256.32 crore (FY25), and the cash cycle improved from 71 days to 34 days. Patient investors may find ₹68 a better entry than ₹104, but should track customer concentration risk carefully.
- Balanced option: Partially booking whatever remains of allotment at current prices and re-entering after lock-in expiry (late March or late May 2026) could reduce risk, especially given likely selling pressure around those dates.
What Investors Should Track Now
- Quarterly results: Watch Q3 FY26 and Q4 FY26 results closely. The H1 FY26 EBITDA margin of 12.9% looks strong, but textiles are cyclical. If that margin slips back toward the FY25 level of 8.57%, the current valuation becomes harder to justify.
- Anchor lock-in expiry dates: Around March 27, 2026 (50% of anchor shares) and May 26, 2026 (remaining 50%). These dates can bring additional selling pressure. Historically, small-cap IPOs see 5-15% price weakness around lock-in expiry.
- Raw cotton prices: Raw material was 66.23% of FY25 revenue (₹168.9 crore). A cotton price spike can squeeze margins fast. Track MCX cotton futures and the Cotton Corporation of India's seasonal price data.
- Customer concentration: Top 10 customers were 85.98% of FY25 revenue. Any loss of the single largest buyer (32.97% of revenue, ₹83.26 crore) would be significant. Watch for any order slowdowns in quarterly disclosures.
- Renewable energy execution: The 5 MW solar plant is already partly operational. Monitor whether the remaining solar capacity and the 4.2 MW wind project stay on schedule, as power cost reduction is a key margin improvement lever.
- Macro and geopolitical conditions: On February 28, 2026, Israel and the US launched a joint military operation targeting Iran, and on March 1, Iran launched retaliatory missiles and drones across the region. OPEC was set to meet to decide on increasing oil production, hoping to avoid a severe rise in oil prices if Gulf supplies were disrupted. This kind of geopolitical shock drives investors away from risk assets globally, including small-cap IPOs. Until the situation stabilises, broader market sentiment is likely to stay cautious.
For detailed information, visit Shree Ram Twistex’s official IPO page at INDmoney.
Final Take
Shree Ram Twistex is not a broken business, but it listed into the worst possible combination: a rich IPO valuation, a volatile global backdrop triggered by the US-Israel-Iran conflict, and a sector that demands patience. At ₹68, the margin of safety is better than at ₹104, but the risks around customer concentration, cotton prices, and lock-in expiry are all still live.
Keep the next two quarterly results and the anchor lock-in expiry dates on your calendar as the clearest checkpoints before making any fresh decision on this stock.
For more IPOs, check INDmoney’s IPO tracker here.
Disclaimer
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