Company Overview

Alpine Texworld Limited (formerly Alpine Spinweave Limited) is a vertically integrated textile manufacturer based in Ahmedabad, Gujarat, engaged in manufacturing grey fabric and yarn through weaving and spinning operations. The company commenced production in April 2017 and has grown significantly, operating manufacturing facilities with 112 air-jet looms and spinning units. The company has one material subsidiary, Alpine Cottweave LLP (97% owned), which contributed ₹1,229.98 million (35.89%) to consolidated revenue in Fiscal 2026.

Offer Details

The company proposes an Initial Public Offering (IPO) of up to 1,20,24,000 equity shares of face value ₹10 each through the book building process, aggregating up to ₹[●] million. The price band will be announced at least 2 working days prior to the bid opening date. The issue allocates 70% to Retail Investors, 29% to Non-Institutional Investors, and 1% to QIBs, with mandatory UPI payment mechanism for applications up to ₹0.5 million and T+3 listing timeline as per SEBI regulations.

Financial Performance

The company demonstrates strong financial growth with consolidated revenue increasing from ₹1,836.03 million (Fiscal 2024) to ₹2,373.24 million (Fiscal 2025) and reaching ₹3,427.13 million in Fiscal 2026. Profit After Tax showed remarkable improvement from ₹48.81 million (Fiscal 2024) to ₹86.26 million (Fiscal 2025) and ₹217.16 million (Fiscal 2026). Key financial ratios improved significantly with Return on Equity at 33.85% and Debt to Equity ratio at 2.35 in Fiscal 2026.

Use of Proceeds

The net proceeds are proposed for:

  • Capital expenditure for new manufacturing unit: ₹307.11 million for installing 48 additional looms at Proposed Manufacturing Unit 3
  • Debt repayment: ₹150-522 million to repay borrowings from Saraswat Bank and SVC Bank
  • General corporate purposes: Balance amount (not exceeding 25% of gross proceeds)

Risk Factors

Business Risks: High customer concentration with top 10 customers contributing 70.33% of revenue in Fiscal 2026; significant supplier dependence with top 10 suppliers representing 64.26% of purchases; regulatory non-compliance history including operations without CCA from GPCB for Manufacturing Unit 2; high employee attrition rate of 76.92% in Fiscal 2026.

Market Risks: Volatility in raw material prices (cotton and yarn); economic cycles affecting textile demand; intense competition from domestic and international manufacturers; geographic concentration with 97.37% revenue from Gujarat.

Financial Risks: Total borrowings of ₹1,775.95 million as of March 2026, primarily secured by assets and personal guarantees from promoters; contingent liabilities of ₹684.59 million including corporate guarantees of ₹557.50 million.

Management & Promoters

The company is promoted by Sumit Champalal Agarwal (62% pre-issue), Sandeep Santkumar Agrawal (17.44%), and Sachinkumar Santkumar Agrawal (10.92%), who collectively hold 90.36% of pre-issue capital. The management team includes experienced professionals with extensive textile industry background. Post-IPO, promoter holding will dilute to [●]%.

Manufacturing Capabilities

The company operates with:

  • Weaving capacity: 276 lakh meters per annum across two units
  • Spinning capacity: 6,000 metric tonnes per annum
  • Solar power units: 820 KW rooftop and 9.0 MW ground-mounted capacity
  • Capacity utilization: Weaving at 107.30% and spinning at 88.50% in Fiscal 2026

Regulatory & Legal Framework

The IPO has received SEBI final observation letter on February 20, 2026, and in-principle listing approvals from BSE and NSE on December 2, 2025. The company faces ongoing legal proceedings including 10 tax proceedings involving ₹18.7 million and GST show cause notice for ₹15.76 million (under appeal). The issue complies with Companies Act, SEBI ICDR Regulations, and FEMA rules for foreign investment.

Industry Context

The Indian textile industry represents a significant sector contributing 13% to industrial production, 2.3% to GDP, and 10.5% to national exports. The industry is projected to grow from USD 188 billion in FY26 to USD 350 billion in FY30, supported by government initiatives like PLI scheme, PM MITRA parks, and export incentives. Gujarat's favorable agro-climatic conditions provide competitive advantage for cotton-based manufacturing.