Shree Ram Twistex Seeks OK to Shift IPO Funds to Machinery, Debt

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AuthorAarav Shah|Published at:
Shree Ram Twistex Seeks OK to Shift IPO Funds to Machinery, Debt
Overview

Shree Ram Twistex Limited is seeking shareholder approval via postal ballot to alter its IPO fund utilisation. The company plans to scale down its wind power project and reallocate the surplus funds, amounting to ₹13.89 crore, towards machinery expansion and repayment of bank borrowings. The vote, conducted via e-voting from May 1-30, 2026, requires over 90% shareholder approval.

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Shree Ram Twistex Revises IPO Fund Use for Debt, Machinery

Shree Ram Twistex Limited proposes to revise its Initial Public Offering (IPO) fund utilisation, scaling down its wind power project from an allocation of ₹39 crore to ₹25.11 crore.

Fund Reallocation Plan Details

Shree Ram Twistex Limited is asking shareholders to approve a major change to how it uses money from its Initial Public Offering (IPO) through a postal ballot. The company plans to reduce the capacity of its wind power project from 4.2 MW (two turbines) to 3.1 MW (one turbine).

This change is intended to speed up project completion, with the 3.1 MW turbine expected to be installed in 6 months instead of 15 months for the larger project. The revised allocation for the wind power project is ₹25.11 crore, down from ₹39.00 crore.

The ₹13.89 crore in surplus funds will be redirected to expand machinery (₹5.26 crore) and repay bank loans (₹8.63 crore).

What This Means for Shree Ram Twistex

These changes show a move to prioritize faster project completion and reduce debt. Paying down loans can improve the company's financial health and lower interest expenses. Expanding machinery could also boost the textile maker's operational capacity and improve future revenue and efficiency.

Original IPO Plan

Shree Ram Twistex Limited raised ₹30 crore through its IPO in March 2024. The original plan was to use these funds for a wind power project, working capital, and general corporate needs.

Key Changes Proposed

  • Shareholder approval is now essential for the new plan.
  • The wind project will proceed with a single turbine for faster completion.
  • More IPO money will go towards paying off existing bank debt.
  • Funds will also support machinery upgrades for future growth.

Approval Hurdle

A key challenge is the high approval threshold: the plan needs more than 90% of shareholder votes to pass. If it falls short, the original IPO plan will remain, potentially delaying debt repayment and machinery upgrades.

Next Steps for Investors

  • Watch the results of the postal ballot and e-voting, which ends May 30, 2026.
  • Note the company's announcements after the vote.
  • Look for evidence of debt reduction and machinery investment in future financial reports if approved.
  • Evaluate management's ability to execute the updated plans if approved.

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