Alpine Texworld
IPO Size: Rs. 120 cr, entirely Fresh Issue
- To repay Rs. 52 cr of Rs. 177 cr gross debt
- Capex of Rs. 31 cr, to increase capacity by 28%
Price band: Rs. 100-105 per share
M cap: Rs. 395 cr, implying 30% dilution
- Minimum 70% allocation for retail, minimum 29% for HNI and max 1% for institutional investors
IPO Date: Tue 14th Jul to Thu 16th Jul 2026, Listing Tue 21st Jul 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Ahmedabad-based Textile Company
Alpine Texworld is a 10 year old manufacturer of grey fabric from weaving yarn, having a plant in Ahmedabad, Gujarat, which operates at full capacity. Company also has 10 MW solar power generation capacity for captive use (installed in 2024 and 2026), although it does not meet 100% of power requirement.
Greenfield Capex
Company’s weaving capacity stands at 2.76 crore meters per annum, with spinning capacity of 6,000 MTPA. In FY26, they were 107% and 89% utilized respectively. Hence, Alpine is establishing a new weaving unit to expand grey fabric production capabilities by 28% or 0.78 crore meters per annum, expected to be commercialized by Mar 2027. Investment for Rs. 31 cr for this expansion is to be entirely funded via IPO proceeds.
Subsidy drives Profitability
FY26 revenue stood at Rs. 343 cr, with net profit of Rs. 22 cr, leading to 6% net margin. But company’s profit is highly dependent on subsidies, which amounted to Rs. 11 cr in FY26.
Subsidy income accounted for most of company’s bottomline for FY23 and FY24, and nearly 50% of FY25 and FY26 bottomline. These subsidies are from Gujarat State Government for under the industrial ‘Scheme for Assistance to Strength Specific Sectors in Textile Value Chain’ towards SGST, interest and electricity. Thus, business fundamentals are not strong, as subsidies, though may be given over a long period, are not perpetual.
High Debt to Continue
Alpine has a high Debt Equity ratio, at 2.4:1, with Rs. 177 cr gross debt on net worth of Rs. 73 cr. Even post IPO, Rs. 125 cr debt will remain on books. What is worrisome is the long-term debt rating of BBB-/Stable by CARE, the lowest investment grade rating. Its debt rating from Crisil is BB, which is ‘speculative’ or junk rating.
Moreover, company has borrowings from co-operative banks, such as Saraswat and SVC Co-operative. Who in today’s times has co-operative banks as their lead lenders? 2019’s Punjab and Maharashtra Co-operative Bank scam had well exposed how co-operative banks work in the country!
Expensive Pricing
M cap of Rs. 395 cr and Enterprise Value of Rs. 519 cr richly value the company. As current capacity is fully utilized, while capex will not contribute this year, FY27E estimated EPS is around Rs. 7 (equity expands by 30%). This leads to a current year PE multiple of 15x, which is quite expensive for a small-scale player with operations limited to Gujarat.
Larger peer Ambika Cotton Mills, with 10% net margin on Rs. 800 cr topline, and a debt-free balance sheet, is ruling at PE multiple of less than 14x, whereas recently listed peer Aastha Spintex is ruling below IPO price.
