Alpine Texworld IPO subscribed 0.28 times on day one, QIBs fully bid
Alpine Texworld's ₹126 crore initial public offering drew weak retail demand on its opening day despite full institutional subscription, pointing to a cautious reception for the textile maker's expansion plans.
Alpine Texworld’s ₹126 crore initial public offering recorded a muted first day, with the overall issue subscribed just 0.28 times. Bids were received for 34 lakh shares against the 1.20 crore shares on offer. While qualified institutional buyers fully subscribed to their allotted portion, retail and non-institutional investors showed limited appetite, booking their respective segments at 0.26 times and 0.31 times.
The offering is a pure fresh issue of 1.20 crore equity shares with no offer-for-sale component, priced between ₹100 and ₹105 per share. Retail investors must bid for a minimum lot size of 142 shares, requiring a minimum outlay of ₹14,910 at the upper price band. In the unofficial grey market, the stock is trading at a premium of ₹5 per share. This suggests an expected listing price of around ₹110, representing a modest 4.76% premium over the upper end of the price band.
Proceeds from the float are earmarked for capital expenditure, specifically a new weaving unit at a proposed third manufacturing facility in Ahmedabad, Gujarat. This expansion targets an increase in the company's grey fabric production capacity. The company will also use the funds to prepay or repay certain borrowings and for general corporate purposes.
Founded in 2016, Alpine Texworld processes cotton and blended yarn across two existing facilities equipped with specialised dyeing and finishing capabilities. These sites have an installed annual capacity of 6,000 metric tonnes. The company operates 112 high-speed looms to produce denim, suiting, shirting and ready-for-dyeing fabrics. It has also recently integrated renewable energy assets, including an 820 kW rooftop solar plant commissioned in January 2024 and a 5.4 MW ground-mounted solar project in Banaskantha commissioned in March.
The divergence between full institutional subscription and tepid retail demand highlights a cautious stance from individual investors toward small-cap manufacturing floats. Shares are scheduled to list on the BSE and NSE on July 21, with allotment finalisation set for July 17 and refunds for non-allottees initiated on July 20.
