Shares of Shree Ram Twistex made a poor debut on the stock market, falling sharply on their first day of trading. The stock listed at a steep discount of nearly 35 per cent compared to its IPO price, leaving many investors disappointed.
The company had fixed its IPO price at ₹104 per share. However, when the shares began trading on the National Stock Exchange (NSE), they opened at around ₹68. On the Bombay Stock Exchange (BSE), the stock listed close to ₹70. This means investors who bought shares in the IPO immediately saw a sharp drop in the value of their investment.
What surprised many was that the IPO had received strong demand. The issue was subscribed more than 43 times during the bidding period, with healthy participation from retail investors as well as institutional buyers. Usually, such strong interest leads to a good listing, but that did not happen in this case.
Market experts say that listing performance depends not only on subscription numbers but also on overall market conditions and investor sentiment on the day of trading. Broader market weakness and cautious investor mood may have affected the stock’s debut.
Shree Ram Twistex manufactures cotton yarn used in products such as denim, garments, towels and home textiles. The company raised around ₹110 crore through the IPO. It plans to use the funds for business expansion, setting up renewable energy capacity and meeting working capital needs.
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