Gujarat-based cotton yarns manufacturer Shree Ram Twistex has filed draft papers with the SEBI on June 27, to raise funds via initial public offering (IPO) for funding the power projects and working capital requirements.
The IPO consists of entirely fresh issue of 1.06 crore equity shares.
Incorporated in 2013, Shree Ram Twistex manufactures 100% cotton compact ring-spun combed & carded yarns, used in knitting and weaving, through its facility in Rajkot, Gujarat, comprising 17 compact ring-spinning machines with a total spindle count of 27,744.
It operates exclusively in the business-to-business (B2B) segment, supplying products to institutional buyers such as textile manufacturers, garment exporters, bulk purchasers and fabric processors. It has long-standing relationship with several institutional customers including Welspun Living, and Jindal Worldwide.
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The company that competes with Ambika Cotton Mills, Damodar Industries, and Rajapalayam Mills plans to spend Rs 7.8 crore out of IPO proceeds for setting up of 6.1 MW solar power plant, and Rs 39 crore for 4.2 MW wind power plant for captive use. Further, Rs 14.89 crore will be utilised for paring its debt, and Rs 44 crore for working capital requirements.
On the financial front, Shree Ram Twistex has recorded profit of Rs 6.6 crore in the year ended March 2024, growing significantly by 219.5 percent, and revenue at Rs 231.6 crore, increasing 8.7 percent over the previous fiscal. Profit in nine months period ended December 2024 stood at Rs 6.96 crore on revenue of Rs 152.6 crore.
Interactive Financial Services is appointed as the book running lead manager for the Shree Ram Twistex IPO.
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