Shree Ram IPO Day 1: GMP Suggests 5% Listing Gain, Key Details & Review

We’re watching one of the newest entries into India’s public markets, the Shree Ram IPO, officially known as Shree Ram Twistex Limited IPO. When an IPO opens, early signals often come from something called the Grey Market Premium (GMP). This unofficial price indicator gives us a sense of how shares might perform when they list on the stock exchanges. For Shree Ram, the GMP has been suggesting a listing gain of about 5%, hinting at positive investor interest right from Day 1 of the subscription.

About Shree Ram Company

• Business: Cotton yarn manufacturer based in Rajkot, Gujarat.
• Product Range: Makes combed and carded yarns for textiles like denim, towels, socks, and home textiles.
• Business Model: Focuses on a B2B model, supplying fabric makers, garment exporters, and textile firms.
• Manufacturing: Equipped with 17 compact ring spinning machines; significant storage capacity.
• Financials: Revenue and net profit growth for FY2025, indicating steady performance before the IPO.

Shree Ram IPO Key Details

• Price Band: ₹95 – ₹104 per share.
• Issue Size: ₹110.24 crore (fresh shares only).
• Lot Size: 144 shares per lot (minimum).
• Retail Investment Minimum: Around ₹14,976 (based on upper price band).
• Allocation: 75% for institutions, 15% for non-institutional, and 10% for retail investors.
• Allotment Date: 26 February 2026.
• Listing Date: 2 March 2026 on both BSE and NSE.
• Fresh Issue: Entirely a fresh issue, meaning funds raised go to the company.

Grey Market Premium (GMP) & Listing Expectations

• GMP: Around ₹5 per share over the upper price band of ₹104. This implies a potential ~5% gain on listing day (listing price near ₹109).
• Significance of GMP: A positive GMP suggests demand for shares before they list, pointing to likely listing gains.
• Market Sentiment: A 5% GMP is seen as moderate but promising, compared to other IPOs that might list flat or below the issue price.
• Note on GMP: Unofficial and can change quickly, so it’s only one factor to consider when investing.

Subscription Status & Investor Sentiment

• Subscription Numbers: As of Day 1 (23 February 2026), live subscription data was still coming in.
• Investor Sentiment: Mixed but generally leaning positive for Shree Ram, especially compared to Clean Max Enviro, whose GMP cooled down.
• Retail Interest: Retail investors are particularly focused on pricing and GMP, as the minimum investment is significant.
• Institutional vs Retail Allocation: A mix of 75% institutional and 10% retail gives a balanced opportunity.

Strengths, Risks & Analyst Review

• Strengths:
  • Focused on yarn production used in widely demanded textiles.
  • Revenue and profit growth in recent years.
  • IPO funds will reduce debt and boost investment in renewable energy projects (solar, wind).
• Risks:
  • The textile sector is cyclical, subject to global demand shifts.
  • Institutional investors’ high share allocation could limit retail availability on the listing day.
  • Market conditions may impact listing price regardless of business fundamentals.
• Analyst Views: Generally fairly priced and moderately attractive, but market sentiment may shift, so a balanced approach is recommended.

 Conclusion

The Shree Ram IPO has opened with steady interest and an encouraging grey market premium, suggesting about a 5% gain on listing day. With a clear business profile and use of IPO funds aimed at growth and efficiency, the issue appeals to both retail and institutional segments.

We recommend investors watch subscription trends, allotment information, and overall market conditions right up to the listing date. GMP is informative, but it’s just one piece of the story. A balanced view of business fundamentals and price expectations will help you make smarter decisions.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.