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Alpine Texworld Ltd IPO
Status: Closed
Overview
IPO date
14 Jul 2026 to 16 Jul 2026
Face value
₹ 10 per share
Price
₹ 100 to ₹105 per share
Issue Size
12,024,000 shares
(aggregating up to ₹ 126.25 Cr)
(aggregating up to ₹ 126.25 Cr)
Allotment Date
17 Jul 2026
Listing at
NSE
Issue type
Book Building
Sector
Textiles
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T&C*
Strengths vs Risks of Alpine Texworld Ltd
Know the pros & cons
Strengths
- Strategic move to reduce yarn sourcing through backward integration in Manufacturing Unit 2.
- Experienced Promoters with execution capabilities.
- Offsetting power use with solar energy.
Risks
- Substantial portion of the company's revenues has been dependent upon its top 10 customers for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 which amounted to Rs. 2,410.22 million, Rs. 1,665.85 million and Rs. 1,319.29 million which accounted for 70.33%, 70.19 % and 71.86 % of the company's revenue from operations for the respective years, with whom its does not has any firm commitments. The loss of any one or more of the company's top 10 customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- The Company's commenced operations at Manufacturing Unit II without obtaining Consolidated Consent and Authorization (CCA) from Gujarat Pollution Control Board (GPCB) and there is no assurance that similar non-compliances will not occur for its Proposed Manufacturing Unit III. The Company was subject to regulatory scrutiny for delays in obtaining CCA for Manufacturing Unit II and any future lapses, whether due to operational, administrative, or technical reasons, could have a material adverse effect on the Company's business, results of operations, and financial condition.
- The Company and one of its Promoter Group / Group Companies, i.e. Alpine Weaving Private Limited, has extended corporate guarantees aggregating to Rs. 557.50 million to secure the debt facilities availed by the company's Subsidiary. The corporate guarantee constitutes a material contingent liability for the Company. While the Subsidiary has been regular in servicing its debt obligations, there can be no assurance that the Subsidiary will continue to service its debt obligations in a timely manner in the future. Any default by the Company's Subsidiary may result in invocation of the guarantees.
- Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
- The Company's long-term rating was downgraded by CRISIL Ratings Limited from `CRISIL BBB- /Stable' to `CRISIL BB/Stable' and its short-term rating from `CRISIL A3' to `CRISIL A4+' with a remark "Issuer Not Cooperating". Any adverse perception arising from such credit rating or any future downgrade of its credit ratings by a domestic or international credit rating agency may adversely affect the perception of the company's credit profile, increase its cost of borrowings, adversely affect the company's ability to borrow on a competitive basis and have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company's Subsidiary, Alpine Cottweave LLP and Group Companies, Aarnav Fashions Limited, Aarnav Industries Private Limited, Alpine Weaving Private Limited, Sameep Fabrics Private Limited, Sameep Texfab LLP and One World Texofab Private Limited are in the same line of industry. Besides its Subsidiary, the Group Companies is engaged in different business activities than that of the Company and no non-compete agreements has been executed, which could create conflicts of interest and may also have an adverse effect on its business.
- Potential Conflict of Interest and Related Party Considerations in Land Acquisition.
- The Company has negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flow could adversely impact the company's business, financial condition and results of operations.
- The Company and its Subsidiary has unsecured borrowings, loans from related parties and loans from others which are repayable on demand. Any demand from lenders for repayment of such unsecured loans may adversely affect its cash flows.
- The company is subject to restrictive covenants under its credit facilities that limit the company's operational flexibility.
- There are certain discrepancies / errors noticed in some of the company's corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent. There has also been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC. Further, certain of the company's corporate records and filings are not traceable and may have inadvertent errors or inaccuracies. Its cannot assure that regulatory proceedings or actions will not be initiated against the company in the future, and its will not be subject to any penalty imposed by the competent regulatory authorities in this regard.
- The company has in the past entered into related party transactions and may continue to does so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not has an adverse effect on the Company's financial condition and results of operations.
- The Objects of the Issue for which funds are being raised has not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence the company's profitability adversely.
- The company's business is dependent on its manufacturing units which is critical to the company's business and its is subject to manufacturing risks like unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in the company's manufacturing operations or under utilization of its manufacturing capacities, breakdown or failures of machinery, disruption to power sources which could have an adverse effect on its business, results of operations, cash flows and financial condition.
- There are outstanding dues owed by the Company to creditors, material creditors and micro, small and medium enterprises. The Company has made payments to MSME creditors which exceeds the statutory 45-day limit as per Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act"), however there has been no past instances of litigations or disputes with the MSME Creditors.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its business.
- 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. 1,754.23 million, Rs. 1,589.44 million and Rs. 1,178.15 million 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 the company does not has 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.
- For the Proposed Manufacturing Unit III, the company has placed an order for 48 airjet looms from Picanol NV (imported machinery) which its intend to fund through the company's Net Proceeds. Besides the purchase of imported machinery, its has not yet placed orders in relation to the capital expenditure for the purchase of domestic machineries, construction of building, electrification, which the company also intend to fund through its Net Proceeds and is subject to cost escalation based on quotations that may change or expire. In the event of any delay in placing the orders, or non-extension of machinery quotation validity or in the event the vendors are not able to provide the plant and machinery or services in a timely manner, or at all, may result in time and cost over-runs and the company's business, prospects and results of operations may be adversely affected.
- The company will continue to be controlled by its Promoters after the completion of the Issue.
- Changes in accounting policies and operating results may impact comparability of the company's financial performance.
- The Manufacturing Unit II of the Company, which also accommodates the Solar Unit III; and the weaving unit of its Subsidiary has been acquired on leasehold basis from one of the company's Promoter Group/Group Companies, Alpine Weaving Private Limited, and the Solar Unit II of the Company has been acquired on leasehold basis from third parties. There can be no assurance that the lease agreements will be renewed upon termination or that its will be able to obtain other premises on lease on same or similar commercial terms.
- Majority of the company's revenue is dependent on single business segment i.e. manufacturing of Grey Fabric which amounted to Rs. 3,313.85 million, Rs. 2,139.97 million and Rs. 1,728.58 million and comprises of 96.69%, 90.17% and 94.15% for the Fiscal 2026, Fiscal 2025 and Fiscal 2024. Any adverse impact on sales of a product would adversely affect its operations and profitability.
- The company is dependent on credit facilities from banks to fund its business operations. Any event where the company is unable to obtain, renew or enhance credit limits from the banks, repay the term loan, or the loans are recalled on a short notice, its may be required to arrange for funds to fulfil the necessary requirements. The occurrence of these events may have an adverse effect on its cash flow and financial conditions of the Company. Its has incurred indebtedness which exposes the company to various risks which may have an adverse effect on its business and results of operations.
- There are outstanding proceedings involving the Company's, Director, Promoter(s) and Subsidiary, which if resulting in an adverse outcome may affect its reputation, business, financial condition, results of operations and cash flows.
- The company's manufacturing facilities and its sales is concentrated in the State of Gujarat in India, where the company's revenues from operations from Gujarat amounted to Rs. 3,336.85 million, Rs. 2,310.04 million and Rs. 1,791.36 million 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. Th company's business operations and significant revenue is majorly concentrated in a particular geographical region and any adverse developments affecting its operations in this region could have a significant impact on the company's revenue and results of operations.
- The company is heavily dependent on its Promoters for the continued success of the company's Business through their continuing services and strategic guidance and support. The company is also dependent on its management team, Key Managerial Personnel and Senior Management, the loss of or its inability to retain such persons could adversely affect the Company's Business, results of operations and financial condition.
- One of the factors contributing to the growth of the Company is performance and operations of its Subsidiary, Alpine Cottweave LLP and any operational disruption or underperformance of the business of Alpine Cottweave LLP could adversely affect the company's revenue, profitability, cash flows, and financial condition.
- The company is dependent on third party transportation providers for the supply and distribution of its products. Any failures or delay in such transportation and logistics arrangements could materially affect its business, the company operations and financial condition.
- The company's historical performance is not indicative of its future growth or financial results, and the company may not be able to sustain its historical growth rates or effectively execute the company strategies, which may adversely affect its business and financial results.
- The company's Promoters, two of whom also serve as Directors and one of its Promoter Group members has extended personal guarantees in connection with some of the company's loan facilities obtained by its Company, and any failures or default by the Company to repay such loans could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact the company's business and operations.
- The company's operations is subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for the company's business may impact its operations adversely.
- The company has incurred significant capital expenditure in the past and will continue to incur significant capital expenditure in the future, and such expenditure may not yield the benefits its anticipate.
- The company's Promoter Directors, Sumit Champalal Agarwal and Sandeep Santkumar Agrawal, together hold 2,08,31,400 of the Equity Shares of the Company's aggregating to 79.44% pre-Issue Share Capital of the Company and is therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The average cost of acquisition of Equity Shares by the company's Promoters could be lower than the Issue price.
- The interests of the company's Directors, Key Management Personnel (other than Company Secretary and Compliance Officer and Chief Financial Officer) may cause conflicts of interest in the ordinary course of its business. Conflicts may arise in the ordinary course of decision-making by the company's Board.
- The company's business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Unavailability of such adequate and uninterrupted supply of electrical power may significantly impact on its business and results of operation.
- There has been certain instances of delays in payment of statutory dues by the Company. Any further delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have a material adverse impact on its financial condition and cash flows.
- The Company and its Subsidiary is dependent on government subsidies for electricity duty and consumption, interest and net SGST refund, the elimination or reduction of which may reduce the economic benefits of the company's existing business and its opportunities to develop or expand the company's business.
- The company's insurance coverage may not be adequate to protect its against certain operating hazards and this may have a material adverse effect on the company's business.
- None of the Directors of the Company, except Sumit Champalal Agarwal and Piyush Ravishanker Bhatt have experience of being a director of a public listed company.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's Business, revenue from manufacturing operations and financial condition.
- If the company is unable to predict customer demands there may be an adverse effect on its results of operations, financial condition, and cash flows.
- The company requires certain approvals, licenses, registrations and permits to operates its business, Manufacturing Unit I, Manufacturing Unit II and Proposed Manufacturing Unit III, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operates the company's business may adversely affect its operations and financial conditions.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures and its inability to compete effectively could have a material adverse effect on the company's operating margins, business growth and prospects, financial condition and results of operations and may lead to a lower market share.
- Inability to effectively manage rapid growth and the associated operational and managerial challenges could adversely affect the company's business and results of operations.
- The attrition rate of the company's employees for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was 76.92%, 14.46% and 26.39%, respectively. High or increased attrition rate among its workforce could adversely affect the company's operational efficiency and business performance.
- Any failures in the company's quality control processes may have an adverse effect on its business, results of operations and financial condition.
- In the past, Champalal Gopiram Agarwal, Satyabhama Champalal Agarwal, members of the company's Promoter Group and Sumit Champalal Agarwal, one of its Promoters, has been subject to regulatory actions initiated by the SEBI. Any future non-compliance with applicable securities laws, rules or regulations by the company's Promoters, Promoter Group members, Directors, or Key Managerial Personnel may expose its to regulatory actions, monetary penalties, restrictions or reputational risks, which could have an adverse effect on the Company's Business, financial condition and results of operations.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans taken by its, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
- Adverse publicity regarding the company's products could negatively impact its.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and financial condition.
- The Company has not paid dividends during the last three Fiscals and during the current Fiscal. There can be no assurance that the Company will be in a position to pay dividends in the future. Its ability to pay dividends in the future may be affected by any material adverse effect on the company's future earnings, financial condition or cash flows.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by CARE exclusively commissioned and paid for by the company for such purpose and reliance on such information for making an investment decision in the Issue is subject to certain inherent risks.
- Certain Non-GAAP financial measures and certain other statistical information relating to the company's operations and financial performance like Gross Profit, Gross Profit Margin, EBITDA, EBITDA Margin, PAT Margin, Return on Equity, Return on Capital Employed and Debt to Equity ratio has been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.
- Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which may affect investor's assessment of the company's financial condition.
- The company is heavily dependent on technology in carrying out its business activities and it forms an integral part of the company's business. If its faces failures of the company's technology systems, its may not be able to compete effectively which may result in lower revenue, higher costs and would adversely affect the company's business and results of operations.
- The spinning and weaving industry in India faces several structural and operational challenges that may adversely affect the company's business operations, financial condition, and results of operations.
Alpine Texworld Ltd Peer Comparison
Understand the company’s industry standing
Alpine Texworld Limited
United Polyfab Gujarat Limited
Ken Enterprises Limited
Face Value
10
1
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
342.71
682.04
631.82
EPS-Basis
8.18
1.07
6.27
EPS-Diluted
8.18
1.07
6.27
NAV Per Share
27.79
5.78
51.68
P/E-Basic EPS
---
31.60
5.27
P/E-Diluted EPS
---
---
---
RONW(%)
29.44
18.48
12.14
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 14 Jul 2026 & closes on 16 Jul 2026.
Alpine Texworld Limited was originally incorporated as Alpine Spinweave Private Limited' as a Private Limited Company dated February 26, 2016 issued by the Registrar of Companies, Ahmedabad. Subsequently, Company was converted from a Private Company to a Public Company and the name of Company was changed to Alpine Spinweave Limited' on December 16, 2024. Thereafter, name was changed from Alpine Spinweave Limited' to Alpine Texworld Limited', and a fresh Certificate of Incorporation dated February 10, 2025 was issued by the Registrar of Companies, Central Processing Centre.
Company, established in February 2016 in Ahmedabad, Gujarat, has grown into a vertically integrated textile manufacturer in weaving and spinning. It began production in April 2017 with the commencement of its weaving unit at Ahmedabad. At the time of commencement, it installed 48 high-speed Toyota Shuttleless airjet looms in April 2017 and further enhanced the production capacity by installing an additional 64 high-speed Toyota Shuttleless airjet looms, bringing increased operational efficiency and scale in August, 2018.
Thereafter, Company expanded the unit by commencing its spinning unit by installing 4 open end rotor spinning machines at Ahmedabad in Dascroi Tal. in March 2025. The Manufacturing Unit 1 and Unit 2 includes main building sheds, effluent treatment plants, boiler foundations, machineries, office spaces, raw material storage areas, electrical rooms, water tanks, coal yards, and other auxiliary structures. Most of the manufacturing and processing in the units are carried out using the machineries which are supplied by domestic and global players in the textile industry.
Company is planning the fresh issue initial public offer of 1,50,00,000 Equity Shares of face value Rs 10 each.
Alpine Texworld Ltd IPO will close on 16 Jul 2026.
- Strategic move to reduce yarn sourcing through backward integration in Manufacturing Unit 2.
- Experienced Promoters with execution capabilities.
- Offsetting power use with solar energy.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Sumit Champalal Agarwal | 16256992 | 62 | 16256992 | 42.51 |
| 2 | Sandeep Santkumar Agrawal | 4574408 | 17.44 | 4574408 | 11.96 |
| 3 | Sachinkumar Santkumar Agrawal | 2863600 | 10.92 | 2863600 | 7.49 |
| 4 | Pooja Sumit Agarwal | 873300 | 3.33 | 873300 | 2.28 |
| 5 | Pallavi Sachinkumar Agrawal | 827600 | 3.16 | 827600 | 2.16 |
| 6 | Vinita Sandeepkumar Agrawal | 475400 | 1.81 | 475400 | 1.24 |
| 7 | Aarnav Fashions Limited | 351600 | 1.34 | 351600 | 0.92 |
| 8 | Sachi Amol Patel | 100 | --- | 100 | --- |
- Substantial portion of the company's revenues has been dependent upon its top 10 customers for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 which amounted to Rs. 2,410.22 million, Rs. 1,665.85 million and Rs. 1,319.29 million which accounted for 70.33%, 70.19 % and 71.86 % of the company's revenue from operations for the respective years, with whom its does not has any firm commitments. The loss of any one or more of the company's top 10 customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- The Company's commenced operations at Manufacturing Unit II without obtaining Consolidated Consent and Authorization (CCA) from Gujarat Pollution Control Board (GPCB) and there is no assurance that similar non-compliances will not occur for its Proposed Manufacturing Unit III. The Company was subject to regulatory scrutiny for delays in obtaining CCA for Manufacturing Unit II and any future lapses, whether due to operational, administrative, or technical reasons, could have a material adverse effect on the Company's business, results of operations, and financial condition.
- The Company and one of its Promoter Group / Group Companies, i.e. Alpine Weaving Private Limited, has extended corporate guarantees aggregating to Rs. 557.50 million to secure the debt facilities availed by the company's Subsidiary. The corporate guarantee constitutes a material contingent liability for the Company. While the Subsidiary has been regular in servicing its debt obligations, there can be no assurance that the Subsidiary will continue to service its debt obligations in a timely manner in the future. Any default by the Company's Subsidiary may result in invocation of the guarantees.
- Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
- The Company's long-term rating was downgraded by CRISIL Ratings Limited from `CRISIL BBB- /Stable' to `CRISIL BB/Stable' and its short-term rating from `CRISIL A3' to `CRISIL A4+' with a remark "Issuer Not Cooperating". Any adverse perception arising from such credit rating or any future downgrade of its credit ratings by a domestic or international credit rating agency may adversely affect the perception of the company's credit profile, increase its cost of borrowings, adversely affect the company's ability to borrow on a competitive basis and have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company's Subsidiary, Alpine Cottweave LLP and Group Companies, Aarnav Fashions Limited, Aarnav Industries Private Limited, Alpine Weaving Private Limited, Sameep Fabrics Private Limited, Sameep Texfab LLP and One World Texofab Private Limited are in the same line of industry. Besides its Subsidiary, the Group Companies is engaged in different business activities than that of the Company and no non-compete agreements has been executed, which could create conflicts of interest and may also have an adverse effect on its business.
- Potential Conflict of Interest and Related Party Considerations in Land Acquisition.
- The Company has negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flow could adversely impact the company's business, financial condition and results of operations.
- The Company and its Subsidiary has unsecured borrowings, loans from related parties and loans from others which are repayable on demand. Any demand from lenders for repayment of such unsecured loans may adversely affect its cash flows.
- The company is subject to restrictive covenants under its credit facilities that limit the company's operational flexibility.
- There are certain discrepancies / errors noticed in some of the company's corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent. There has also been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC. Further, certain of the company's corporate records and filings are not traceable and may have inadvertent errors or inaccuracies. Its cannot assure that regulatory proceedings or actions will not be initiated against the company in the future, and its will not be subject to any penalty imposed by the competent regulatory authorities in this regard.
- The company has in the past entered into related party transactions and may continue to does so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not has an adverse effect on the Company's financial condition and results of operations.
- The Objects of the Issue for which funds are being raised has not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence the company's profitability adversely.
- The company's business is dependent on its manufacturing units which is critical to the company's business and its is subject to manufacturing risks like unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in the company's manufacturing operations or under utilization of its manufacturing capacities, breakdown or failures of machinery, disruption to power sources which could have an adverse effect on its business, results of operations, cash flows and financial condition.
- There are outstanding dues owed by the Company to creditors, material creditors and micro, small and medium enterprises. The Company has made payments to MSME creditors which exceeds the statutory 45-day limit as per Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act"), however there has been no past instances of litigations or disputes with the MSME Creditors.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its business.
- 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. 1,754.23 million, Rs. 1,589.44 million and Rs. 1,178.15 million 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 the company does not has 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.
- For the Proposed Manufacturing Unit III, the company has placed an order for 48 airjet looms from Picanol NV (imported machinery) which its intend to fund through the company's Net Proceeds. Besides the purchase of imported machinery, its has not yet placed orders in relation to the capital expenditure for the purchase of domestic machineries, construction of building, electrification, which the company also intend to fund through its Net Proceeds and is subject to cost escalation based on quotations that may change or expire. In the event of any delay in placing the orders, or non-extension of machinery quotation validity or in the event the vendors are not able to provide the plant and machinery or services in a timely manner, or at all, may result in time and cost over-runs and the company's business, prospects and results of operations may be adversely affected.
- The company will continue to be controlled by its Promoters after the completion of the Issue.
- Changes in accounting policies and operating results may impact comparability of the company's financial performance.
- The Manufacturing Unit II of the Company, which also accommodates the Solar Unit III; and the weaving unit of its Subsidiary has been acquired on leasehold basis from one of the company's Promoter Group/Group Companies, Alpine Weaving Private Limited, and the Solar Unit II of the Company has been acquired on leasehold basis from third parties. There can be no assurance that the lease agreements will be renewed upon termination or that its will be able to obtain other premises on lease on same or similar commercial terms.
- Majority of the company's revenue is dependent on single business segment i.e. manufacturing of Grey Fabric which amounted to Rs. 3,313.85 million, Rs. 2,139.97 million and Rs. 1,728.58 million and comprises of 96.69%, 90.17% and 94.15% for the Fiscal 2026, Fiscal 2025 and Fiscal 2024. Any adverse impact on sales of a product would adversely affect its operations and profitability.
- The company is dependent on credit facilities from banks to fund its business operations. Any event where the company is unable to obtain, renew or enhance credit limits from the banks, repay the term loan, or the loans are recalled on a short notice, its may be required to arrange for funds to fulfil the necessary requirements. The occurrence of these events may have an adverse effect on its cash flow and financial conditions of the Company. Its has incurred indebtedness which exposes the company to various risks which may have an adverse effect on its business and results of operations.
- There are outstanding proceedings involving the Company's, Director, Promoter(s) and Subsidiary, which if resulting in an adverse outcome may affect its reputation, business, financial condition, results of operations and cash flows.
- The company's manufacturing facilities and its sales is concentrated in the State of Gujarat in India, where the company's revenues from operations from Gujarat amounted to Rs. 3,336.85 million, Rs. 2,310.04 million and Rs. 1,791.36 million 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. Th company's business operations and significant revenue is majorly concentrated in a particular geographical region and any adverse developments affecting its operations in this region could have a significant impact on the company's revenue and results of operations.
- The company is heavily dependent on its Promoters for the continued success of the company's Business through their continuing services and strategic guidance and support. The company is also dependent on its management team, Key Managerial Personnel and Senior Management, the loss of or its inability to retain such persons could adversely affect the Company's Business, results of operations and financial condition.
- One of the factors contributing to the growth of the Company is performance and operations of its Subsidiary, Alpine Cottweave LLP and any operational disruption or underperformance of the business of Alpine Cottweave LLP could adversely affect the company's revenue, profitability, cash flows, and financial condition.
- The company is dependent on third party transportation providers for the supply and distribution of its products. Any failures or delay in such transportation and logistics arrangements could materially affect its business, the company operations and financial condition.
- The company's historical performance is not indicative of its future growth or financial results, and the company may not be able to sustain its historical growth rates or effectively execute the company strategies, which may adversely affect its business and financial results.
- The company's Promoters, two of whom also serve as Directors and one of its Promoter Group members has extended personal guarantees in connection with some of the company's loan facilities obtained by its Company, and any failures or default by the Company to repay such loans could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact the company's business and operations.
- The company's operations is subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for the company's business may impact its operations adversely.
- The company has incurred significant capital expenditure in the past and will continue to incur significant capital expenditure in the future, and such expenditure may not yield the benefits its anticipate.
- The company's Promoter Directors, Sumit Champalal Agarwal and Sandeep Santkumar Agrawal, together hold 2,08,31,400 of the Equity Shares of the Company's aggregating to 79.44% pre-Issue Share Capital of the Company and is therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The average cost of acquisition of Equity Shares by the company's Promoters could be lower than the Issue price.
- The interests of the company's Directors, Key Management Personnel (other than Company Secretary and Compliance Officer and Chief Financial Officer) may cause conflicts of interest in the ordinary course of its business. Conflicts may arise in the ordinary course of decision-making by the company's Board.
- The company's business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. Unavailability of such adequate and uninterrupted supply of electrical power may significantly impact on its business and results of operation.
- There has been certain instances of delays in payment of statutory dues by the Company. Any further delays in payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have a material adverse impact on its financial condition and cash flows.
- The Company and its Subsidiary is dependent on government subsidies for electricity duty and consumption, interest and net SGST refund, the elimination or reduction of which may reduce the economic benefits of the company's existing business and its opportunities to develop or expand the company's business.
- The company's insurance coverage may not be adequate to protect its against certain operating hazards and this may have a material adverse effect on the company's business.
- None of the Directors of the Company, except Sumit Champalal Agarwal and Piyush Ravishanker Bhatt have experience of being a director of a public listed company.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's Business, revenue from manufacturing operations and financial condition.
- If the company is unable to predict customer demands there may be an adverse effect on its results of operations, financial condition, and cash flows.
- The company requires certain approvals, licenses, registrations and permits to operates its business, Manufacturing Unit I, Manufacturing Unit II and Proposed Manufacturing Unit III, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operates the company's business may adversely affect its operations and financial conditions.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures and its inability to compete effectively could have a material adverse effect on the company's operating margins, business growth and prospects, financial condition and results of operations and may lead to a lower market share.
- Inability to effectively manage rapid growth and the associated operational and managerial challenges could adversely affect the company's business and results of operations.
- The attrition rate of the company's employees for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 was 76.92%, 14.46% and 26.39%, respectively. High or increased attrition rate among its workforce could adversely affect the company's operational efficiency and business performance.
- Any failures in the company's quality control processes may have an adverse effect on its business, results of operations and financial condition.
- In the past, Champalal Gopiram Agarwal, Satyabhama Champalal Agarwal, members of the company's Promoter Group and Sumit Champalal Agarwal, one of its Promoters, has been subject to regulatory actions initiated by the SEBI. Any future non-compliance with applicable securities laws, rules or regulations by the company's Promoters, Promoter Group members, Directors, or Key Managerial Personnel may expose its to regulatory actions, monetary penalties, restrictions or reputational risks, which could have an adverse effect on the Company's Business, financial condition and results of operations.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans taken by its, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
- Adverse publicity regarding the company's products could negatively impact its.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and financial condition.
- The Company has not paid dividends during the last three Fiscals and during the current Fiscal. There can be no assurance that the Company will be in a position to pay dividends in the future. Its ability to pay dividends in the future may be affected by any material adverse effect on the company's future earnings, financial condition or cash flows.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by CARE exclusively commissioned and paid for by the company for such purpose and reliance on such information for making an investment decision in the Issue is subject to certain inherent risks.
- Certain Non-GAAP financial measures and certain other statistical information relating to the company's operations and financial performance like Gross Profit, Gross Profit Margin, EBITDA, EBITDA Margin, PAT Margin, Return on Equity, Return on Capital Employed and Debt to Equity ratio has been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.
- Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which may affect investor's assessment of the company's financial condition.
- The company is heavily dependent on technology in carrying out its business activities and it forms an integral part of the company's business. If its faces failures of the company's technology systems, its may not be able to compete effectively which may result in lower revenue, higher costs and would adversely affect the company's business and results of operations.
- The spinning and weaving industry in India faces several structural and operational challenges that may adversely affect the company's business operations, financial condition, and results of operations.
The Issue type of Alpine Texworld Ltd is Book Building.
The minimum application for shares of Alpine Texworld Ltd is 142.
The total shares issue of Alpine Texworld Ltd is 12024000.
Initial public offering of 1,20,24,000 equity shares of face value of Rs.10 each ("Equity Shares") of Alpine Texworld Limited (Formerly known as 'Alpine Spinweave Limited') ("Company" or "Issuer") for cash at a price of Rs. 105 per equity share (Including a Share Premium of Rs. 95 Per Equity Share) ("Issue Price") aggregating to Rs. 126.25 Crore ("Issue") comprising a fresh issue of 1,20,24,000 equity shares of face value of Rs.10 each by the company aggregating to Rs. 126.25 Crore ("Fresh Issue"). The issue shall constitute 31.44% of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 105 per equity share of face value of Rs. 10 each.
The floor price is 10.50 times the face value of the equity shares.
Bids can be made for a minimum of 142 equity shares of face value of Rs. 10 each and in multiples of 142 equity shares of face value of Rs. 10 each thereafter.