Alpine Texworld IPO Day 2: Here's GMP, subscription status, other details. Apply or not?

Alpine Texworld IPO: The initial public offering (IPO) of Alpine Texworld witnessed a subdued response from investors on the opening day of bidding, with the issue subscribed 0.28 times.

Founded in February 2016, Alpine Texworld is engaged in the dyeing, processing, and manufacturing of textiles, specialising in the production of high-quality fabrics.

The company operates two manufacturing units with advanced dyeing and finishing capabilities, serving garment manufacturers and textile traders. Together, these facilities have an installed annual processing capacity of 6,000 metric tonnes (MT) of cotton and blended yarn.

The Alpine Texaworld IPO has been subscribed 0.32 times so far on the second day of bidding, as of 10:10 am.

The IPO has received applications for 37,89,128 shares against the 1,20,24,000 shares available, as per exchange data.

Across investor categories, the retail segment was subscribed 0.30 times, while the non-institutional investor (NII) portion saw 0.32 times subscription. Meanwhile, the qualified institutional buyer (QIB) quota was subscribed 1.00 times.

As of today, Alpine Texworld's grey market premium (GMP) was ₹10 per share, suggesting an estimated listing price of around ₹110. This implies a 9.52% premium over the IPO's upper price band of ₹115.

The GMP represents the difference between an IPO's issue price and its expected listing price in the unofficial grey market. However, investors should keep in mind that GMP is only an informal market indicator and should not be considered the sole factor when making an investment decision.

Swastika Investmart has given the Initial Public Offering (IPO) a 'Neutral' rating, citing a balanced risk-reward proposition. According to the brokerage, the company's FY26 performance was supported by the successful integration of operations and investments in solar power, resulting in a return on equity (RoE) of 33.85% and a return on capital employed (RoCE) of 17.56%.

The brokerage noted that the company's profit after tax (PAT) margin rose significantly to 6.34% in FY26 from 3.63% in FY25. However, it cautioned that maintaining these margins may be difficult given the intense competition in the textile sector. It also pointed out that the IPO is valued at around 18.49 times its FY26 earnings, which appears somewhat expensive for a commoditised business.

Swastika further observed that while the company's debt-to-equity ratio is relatively high at 2.35 times, a substantial portion of the IPO proceeds is earmarked for debt repayment. Considering the small issue size and the overall risk-reward profile, the brokerage has maintained a 'Neutral' view on the IPO.

Alpine Texworld IPO opened for subscription on Tuesday, July 14, and will remain open until Thursday, July 16. The company has set the price band at ₹100-105 per equity share. The public issue has debuted alongside the SBI Funds Management IPO.

The IPO consists entirely of a fresh issue of 1.20 crore equity shares, with no Offer for Sale (OFS), and the company intends to raise around ₹126 crore through the offering.

The basis of allotment is expected to be finalised on Friday, July 17. Shares are likely to be credited to the demat accounts of successful bidders on Monday, July 20, while refunds for unsuccessful applicants are also expected to be initiated the same day. The shares are tentatively scheduled to debut on the BSE and NSE on July 21.

The company plans to use the net proceeds to set up a new weaving unit at its proposed Manufacturing Unit 3 in Ahmedabad, Gujarat, to increase its grey fabric production capacity. A portion of the funds will also be used to prepay or repay certain borrowings, with the remaining amount earmarked for general corporate purposes.