Alpine Texworld IPO prices at 12.8x earnings, steep peer discount
Indian textile maker Alpine Texworld priced its Rs 126 crore IPO at a fraction of the industry average, drawing a 28% first-day subscription as it seeks funds for capacity expansion and debt reduction.
Alpine Texworld opened its three-day initial public offering on Tuesday, seeking to raise Rs 126.25 crore. The issue, consisting entirely of a fresh issue of 1.20 crore equity shares, was subscribed 28% on day one. Bidding for the offering will close on July 16, 2026.
The company set a price band of Rs 100 to Rs 105 per share. Based on diluted earnings per share for FY2026, the upper band values the stock at 12.84 times earnings. This represents a steep discount to the broader industry average of 60.69 times, making the offering one of the cheapest in the Indian textile sector.
Despite the apparent valuation gap, early demand reflects investor caution. Retail investors bid for 25% of their allocated quota, while non-institutional investors subscribed to 31% of their reserved portion. Unofficial grey market activity indicates a premium of Rs 10 per share, or roughly 10% above the upper price band, pointing to an expected but modest listing premium.
Alpine Texworld plans to direct the capital primarily toward balance sheet repair and capacity growth. A significant portion of the raise, Rs 52.20 crore, will be used to prepay existing borrowings to improve financial flexibility. Another Rs 32.08 crore is earmarked for a new weaving unit at a proposed third manufacturing facility in Ahmedabad.
Formerly known as Alpine Spinweave, the company processes cotton and blended yarn across two facilities with a combined 6,000 metric tonne annual capacity. It has also diversified into renewable energy, commissioning an 820 KW rooftop solar plant in 2024 and a 5.4 MW ground-mounted project in Gujarat in March 2025. Shares are scheduled to list on the NSE and BSE on July 21.
