Alpine Texworld Ltd. IPO

Alpine Texworld 

• Alpine Texworld is coming out with a 100% book building; initial public offering (IPO) of 1,20,24,000 shares of face value Rs 10 each in a price band Rs 100-105 per equity share. 
• Not more than 1% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 29% of the issue will be available for the non-institutional bidders and the remaining 70% for the retail investors.
• The issue will open for subscription on July 14, 2026 and will close on July 16, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 10.00 times of its face value on the lower side and 10.50 times on the higher side.
• Book running lead manager to the issue is D and A Financial Services. 
• Compliance officer for the issue is Pooja Jogani.  

Profile of the company 

Alpine Texworld, originally established in February 2016 as Alpine Spinweave Private Limited in Gujarat, has quickly grown into a vertically integrated textile manufacturer with capabilities in weaving and spinning. It serves the domestic market, particularly customers in Gujarat, brings some advantage to the customers. Local businesses benefit from reduced lead times, lower transportation costs, and the ability to collaborate closely with the manufacturer to meet specific requirements. The company’s service portfolio covers yarn sizing, production of yarn, and grey cloth, thereby supporting the growth and competitiveness of the local textile industry. 

The company follows a process which begins with raw cotton, which is processed in the blow room to separate seeds for any impurities. The cotton is then subjected to open-end spinning, resulting in yarns of varying thicknesses to enhance strength. Sizing is applied to the yarns using machinery to improve durability during weaving. The yarns are then weaved into grey fabric using looms, producing fabric. Post-weaving, the fabric undergoes finishing processes such as shearing and singeing to remove surface irregularities and ensure a smooth texture. The finished grey fabric is subjected to quality control checks before being packed and dispatched for further processing or delivery to clients.

Proceed is being used for: 

• Proposing to finance the cost of setting up a new weaving unit at proposed manufacturing unit 3 to expand its production capabilities to produce grey fabric at Ahmedabad, Gujarat, India 
• Prepayment or repayment, in part or full, of certain outstanding borrowings
• General corporate purpose

Industry overview

The Indian textile industry is one of the oldest and most important sectors in the country, playing a vital role in employment, trade, and cultural heritage. The Indian textile industry spans a wide range of segments, including cotton, silk, wool, synthetic fibres, ready-made garments, and traditional handlooms, showcasing the country’s diversity in fabric and craftsmanship. Known for its global presence, Indian textiles are exported to major international markets. The industry receives strong support from the government through various schemes aimed at modernization and infrastructure development. While it faces challenges like global competition, environmental concerns, and logistical hurdles, the growing demand for sustainable products, digital transformation, and innovation in technical textiles offer significant opportunities for expansion and progress. This industry is marked by remarkable diversity ranging from age-old, hand-woven and hand-spun traditions to modern, capital-intensive textile mills equipped with advanced technology.

The Indian textile and apparel industry operates across a vast, interconnected value chain, starting from the cultivation of natural fibres and production of synthetic materials to spinning, weaving, processing, apparel manufacturing, and retail. As the world’s second-largest producer of textiles and garments and the third-largest exporter, India holds a significant position in the global market. The sector contributes around 13% to industrial production, 2.3% to GDP, and 10.5% to national exports. With growing demand, modernization, and policy support, its GDP contribution is expected to double by 2030. The industry’s scope includes not just apparel, but also home textiles and technical textiles, placing India among the top five global exporters across various textile segments.

The Indian Government has been implementing various policy initiatives and schemes for supporting the development of textile sector. These schemes and initiatives are created to promote technology upgradation, creation of infrastructure, skill development and sectoral development in the textile sector. Moreover, these initiatives focus on creating a conducive environment and provide enabling conditions for textile manufacturing in the country which will help in boosting the textile sector. The Union Budget announced an outlay of Rs 5,279.01 crore for the Ministry of Textiles for 2026-27. This is an increase of 0.13% over budget estimates of 2025-26 (Rs 5,272 crore).

Pros and strengths 

The company uses automated machineries from global brands like Picanol and Toyota: The textile industry has undergone significant advancements with the integration of automated machinery, revolutionizing traditional manufacturing processes. Automation encompasses the use of advanced technologies, including robotics, sensors, and computerized systems, to perform tasks that were once manual. This shift has led to enhanced efficiency, precision, and scalability in textile production. These machines include Toyota Shuttleless Air Jet Looms, Karl Mayer High-Speed Multi-Cylinder Sizing Machine, Itema Weaving Machines and Picanol Weaving Machines.

It is textile manufacturer based in Ahmedabad, Gujarat specialised in manufacturing of Grey Fabric, ready to capitalize on growing demand in this sector: Gujarat’s favourable agro-climatic conditions, coupled with advanced farming techniques, have positioned it as a leading cotton producer in India. This robust domestic supply ensures that textile manufacturers in Gujarat have consistent access to high-quality raw materials, minimizing reliance on external sources. Such self-sufficiency not only stabilizes production costs but also enhances the competitiveness of Gujarat's textile products in both national and international markets. Ahmedabad holds a pivotal role in Gujarat's textile industry, serving as its primary manufacturing and innovation centre. Ahmedabad serves as a prominent textile hub, supported by favorable policies like the Gujarat Government's Textile Policy, which incentivizes businesses within the sector. Ahmedabad also benefits from a strategically advantageous raw material ecosystem that underpins its textile competitiveness.

The company has set up Solar Units that offsets its power consumption against power generated and supplied by Solar Units: The company operates with a contract load of 3350 KVAH, supplied by the state electricity board of Gujarat i.e. Uttar Gujarat Vij Company (UGVCL) for various plant operations, including lighting, machinery, and equipment. As a step towards environmental sustainability and to aid in the reduction of power cost, the company installed an 820 KW and 475 KW rooftop solar project during Fiscal 2024 and Fiscal 2026. The generated electricity offsets the company’s power consumption against the power generated and supplied by the Solar Units, with UGVCL adjusting the same against energy bills. The company, in March 2025 implemented a 5.4 megawatts ground-mounted solar project and in April 2026 implemented a 3.6 megawatts ground-mounted solar project, which has further reduced dependency on grid power and has promoted cost efficiency for the company.

The company has track record of positive financial performance: Its focus on operational and functional excellence has contributed to its track record of positive financial performance. For the fiscals 2026, 2025 and 2024, the company's total revenue from operations was Rs 342.71 crore, Rs 237.32 crore and Rs 183.60 crore, respectively. Its profit after tax was Rs 21.72 crore, Rs 8.63 crore and Rs 4.88 crore, respectively. Its financial performance reflects the efficacy of the manufacturing activity. Its steady operating cash flows enable it to meet the present and future needs of its customers.

Risks and concerns

Top 10 customers account for more than 70% of revenue: Substantial portion of its revenues has been dependent upon its top 10 customers for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 which amounted to Rs 241.02 crore, Rs 166.59 crore and Rs 131.93 crore, which accounted for 70.33%, 70.19 % and 71.86 % of its revenue from operations for the respective years, with whom it does not have any firm commitments. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Heavy dependence on top suppliers: The company is primarily dependent upon top 10 suppliers for procurement of raw materials and purchase of traded goods for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 which amounted to Rs 175.42 crore, Rs 158.94 crore and Rs 117.81 crore and accounted for 64.26%, 82.76% and 81.43% of its total purchases of raw material and traded goods for the respective years, with whom it does not have any firm commitments. Any disruption in the supply of these goods or fluctuations in their prices, inter alia, due to seasonality of cultivation of cotton could have a material adverse effect on its business operations and financial conditions.

Maximum revenue derived from Grey Fabric manufacturing: Majority of its revenue is dependent on single business segment i.e. manufacturing of Grey Fabric which amounted to Rs 331.39 crore, Rs 214.00 crore and Rs 172.86 crore and comprises of 96.69%, 90.17% and 94.15% for the Fiscal 2026, Fiscal 2025 and Fiscal 2024. Its continued reliance on single business segment for a significant portion of its revenue exposes it to risks, including but not limited to, reduction in the demand in the future; increased competition from domestic and international manufacturers; the invention of superior and cost-effective technology; fluctuations in the price and availability of the raw materials; changes in regulations and import duties; and the cyclical nature of its customers’ businesses. Any occurrences of such event could significantly reduce its revenues, thereby materially adversely affecting its results of operations and financial condition.

Revenue concentration in Gujarat could affect business growth: Its manufacturing facilities and its sales are concentrated in the State of Gujarat in India. It conducts its business predominantly in the State of Gujarat from where its revenues from operations from Gujarat amounted to Rs 333.69 crore, Rs 231.00 crore and Rs 179.14 crore which comprises of 97.37%, 97.34% and 97.57% of its revenues from operations in the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Its business operations and significant revenue are majorly concentrated in a particular geographical region and any adverse developments affecting its operations in this region could have a significant impact on its revenue and results of operations.

Outlook  

Alpine Texworld is engaged in the spinning of cotton yarn, sizing of cotton yarn and weaving of cotton yarn including trading of various textile products. The company’s service portfolio covers yarn sizing, production of yarn, and grey cloth, thereby supporting the growth and competitiveness of the local textile industry. On the concern side, it is dependent on third party transportation providers for the supply and distribution of its products. Any failure or delay in such transportation and logistics arrangements could materially affect its business, its operations and financial condition. Further, its operations are subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for its business may impact its operations adversely.

The issue has been offering 1,20,24,000 shares in a price band of Rs 100-105 per equity share. The aggregate size of the offer is around Rs 120.24 crore to Rs 126.25 crore based on lower and upper price band respectively. On performance front, its total income has increased by 47.34% from Rs 237.66 crore in Fiscal 2025 to Rs 350.18 crore in Fiscal 2026. Its profit for the year increased by 151.68% from Rs 8.63 crore in Fiscal 2025 to Rs 21.72 crore in Fiscal 2026.

Meanwhile, as part of its ongoing efforts to enhance operational efficiency and meet growing market demand, it proposes to undertake significant capacity expansion initiatives. To achieve greater integration across its manufacturing value chain, it proposes to increase its production capabilities by installing forty-eight additional looms at its Proposed Manufacturing Unit 3. This expansion is aimed at strengthening its weaving operations. These strategic expansions are aligned with its long-term growth objectives and are expected to position the company for increased competitiveness and improved market presence in the textile markets.