At least five Indian textile companies have filed papers with the Securities Exchange Board of India (SEBI), to raise over Rs 500 crore through initial public offerings (IPOs).
Of these, three companies will tap the main bourse, while two will list on the SME platform. They are raising capital for expansion, capacity enhancement, and modernisation.
Among the companies that will be tapping the main bourse are Alpine Texworld, Astha Spintex and TC Terry Text, while Shreedhar Spinners and Shree Ram Twistex will list on the SME platform.
Soham Samanta, Research Analyst, Motilal Oswal Research, said, “With India accounting for only 4-5% of global apparel trade, significant opportunities remain to gain market share as global brands diversify sourcing beyond China.”
Looking ahead, he expects growth to recover, supported by upcoming FTAs with the UK and EU, favourable tariff realignments and improving incentives such as RoSCTL (Rebate of State and Central Taxes and Levies).
Ratiraj Tibrewal, CEO at Choice Capital, said, for nearly half a decade, India’s textile industry operated under persistent pressure —not due to poor management, but because of a structural disadvantage it could not overcome on its own.
While Bangladesh and Vietnam secured preferential market access through trade agreements, India continued to face duties of 9-12% in the EU and the UK, consistently pricing its exporters out despite being competitive on quality.
“With no credible growth narrative to support valuations, the IPO market held little appeal for both promoters and investors,” the Hindu Businessline reported.
However, this has now changed with the recent wave of proposed trade agreements with the UK, EU and the US, which have given the sector what it lacked — a credible forward revenue visibility.
Textile stocks witnessed strong momentum on the day the UK FTA implementation date was confirmed, and buyers have already begun conducting factory audits in anticipation of shifting orders.
“With India’s IPO market at a historic high, promoters — particularly those backed by private equity funds seeking long-awaited exits — recognise that going public now is the most logical route to fund the capacity expansion required to meet the expected surge in demand,” Tibrewal added.
