Alpine Texworld IPO subscribes 0.32x as valuation concerns weigh
Alpine Texworld's initial public offering has drawn tepid demand from retail and non-institutional investors, reflecting market skepticism over the stretched valuation of a small, debt-heavy textile processor.
Alpine Texworld’s ₹126 crore initial public offering was subscribed just 0.32 times by mid-morning on its second day of bidding. The textile processor received applications for 37.89 lakh shares against the 1.20 crore shares on offer. Qualified institutional buyers provided the only bright spot, fully subscribing their 1% allocated quota.
Retail investors, who hold the largest reserved portion at 70%, had bid for just 0.30 times their allocation by 10:10 am. Non-institutional investors showed similar hesitancy, reaching a 0.32 times subscription rate. The offering, priced between ₹100 and ₹105 per share with a minimum application size of 142 shares, closes on July 16.
Brokerage Swastika Investmart attributed the muted response to an expensive valuation for a commoditised business. The firm noted the stock is priced at roughly 18.49 times its fiscal 2026 earnings. While the company posted a strong return on equity of 33.85% that year, analysts warned that maintaining its recent margin expansion will be difficult amid intense sector competition.
Founded in 2016, Alpine Texworld operates two manufacturing units focused on dyeing and finishing, with a combined annual capacity of 6,000 metric tonnes of cotton and blended yarn. The company saw its profit after tax margin jump to 6.34% in fiscal 2026 from 3.63% the prior year, helped by operational integration and solar power investments.
However, the manufacturer enters the public market carrying a debt-to-equity ratio of 2.35 times. A substantial portion of the entirely fresh-issue offering is earmarked to prepay this debt. The remaining funds will finance a new weaving unit in Ahmedabad to expand grey fabric production and cover general corporate purposes.
In the unofficial grey market, the stock is trading at a premium of ₹10 per share. D&A Financial Services is managing the book-running, while KFin Technologies is the registrar. The Alpine Texworld offering debuted the same day as the SBI Funds Management IPO, with shares slated to list on the BSE and NSE on July 21.
