Alpine Texworld IPO

IPO Timeline & Issue Details

• IPO Dates: July 14, 2026 – July 16, 2026

• Price Band: ₹100 to ₹105 per equity share

• Lot Size: 142 shares (Minimum investment of ₹14,910 at the upper band)

• Issue Size: ₹126.25 Crore (100% Fresh Issue, no Offer for Sale component)

• Reservation: Retail (70%), NII/HNI (29%), QIB (1%)

• Tentative Listing Date: July 21, 2026 (NSE and BSE)

2. Grey Market Premium (GMP) Today

• Current GMP: ~₹10 per share

• Estimated Listing Price: ₹115 (₹105 cap price + ₹10 premium)

• Expected Listing Gain: ~9.52% (Note: The GMP has shown steady improvement, climbing from ₹2 earlier in the week to ₹10 by Day 2).

3. Subscription Status (Day 2 Data)

The IPO has witnessed a steady but somewhat cautious response from the market so far on its second day of bidding:

• Overall Subscription: ~0.48x

• Retail Category: ~0.50x

• Non-Institutional Investors (NII): ~0.41x

• Qualified Institutional Buyers (QIB): Fully subscribed at 1.00x

4. Company Overview

Formerly known as Alpine Spinweave, Alpine Texworld (incorporated in 2016) is a textile manufacturer focused on fabric dyeing, textile processing, and the trading of grey fabric and yarn.

• Infrastructure: The company operates two manufacturing facilities with an installed annual processing capacity of approximately 6,000 MT of cotton and blended yarn.

  Monarch Networth Capital

• Green Energy: To offset massive power costs, the company has diversified into captive green energy, commissioning an 820 KW rooftop solar plant and a 5.4 MW ground-mounted solar project.

  Monarch Networth Capital

• Objects of the Issue: The funds raised will be deployed towards building a new weaving unit (Unit 3) in Ahmedabad, Gujarat (₹32.08 Cr), and significantly paying down debt (₹52.20 Cr).

5. Fundamental & Financial Details

The company reported a major surge in its financials for the twelve-month period ending March 31, 2026:

• Revenue: ₹342.71 Crore (Up 47.3% year-on-year from FY25)

• Net Profit (PAT): ₹21.72 Crore (More than doubled from the previous year)

• Profit Margins: PAT Margin expanded remarkably to 6.34% in FY26 from 3.63% in FY25.

• Return Ratios: Return on Equity (RoE) stands strong at 33.85% and Return on Capital Employed (RoCE) is at 17.56%.

Valuation & Peer Comparison

• P/E Ratio: Based on its diluted FY26 earnings per share (EPS of ₹8.2), the IPO is priced at a Price-to-Earnings (P/E) multiple of 12.84x at the upper band.

• Peer Context: This valuation is considered highly reasonable or even attractive when compared to the broader textile industry peer average, which typically trades at much higher average P/E multiples.

Key Strengths vs. Risks

• Strengths: Fully integrated manufacturing system, aggressive capacity expansion plans, and solid margin insulation due to their captive 10.3 MW solar investments.

• Risks: The textile sector is fiercely competitive, making the recent margin spikes hard to sustain long-term. The operations are highly working-capital intensive with longer receivable cycles, and they currently carry a high pre-IPO Debt-to-Equity ratio of 2.35x (though the IPO proceeds will aggressively deleverage this balance sheet).

Brokerage Consensus: Most major brokerages have a medium-to-long-term “Subscribe” view on the business owing to its solid growth trajectory, though short-term listing pop seekers have adopted a “Neutral” stance given the commoditized nature of the sector and the moderate grey market demand.