Textile Companies Turn to IPO Market to Raise Over ₹500 Crore Amid Expansion Plans
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At least five textile firms file IPO plans as FTAs, export opportunities and supply chain shifts influence expansion strategies.
Indian textile manufacturers are increasingly approaching the capital markets following the signing of recent Free Trade Agreements (FTAs) and changing global sourcing patterns. The proposed fundraising is intended to support business expansion, capacity enhancement and technology upgrades.
According to the report, at least five textile companies have submitted IPO applications to the Securities and Exchange Board of India (SEBI) seeking to raise more than ₹500 crore. Three companies plan to list on the main stock exchanges, while two intend to list on the SME platform.
The companies pursuing mainboard listings include Alpine Texworld, Asha Spintex and TC Terry Tex, while Shreedhar Spinners and Shree Ram Twisters are planning SME listings.
Several State governments are also supporting the textile industry through incentives for solar power projects, capital subsidies and employment-linked schemes aimed at encouraging industry growth.
The Government has set a target of increasing the Indian textile market to $350 billion by 2030, up from $194 billion in FY26, implying a 13% compound annual growth rate (CAGR).
Exports Expected to Support Growth
The report states that future growth is expected to be supported by export expansion, projected at 22% CAGR, along with steady domestic demand.
Soham Samant, Research Analyst, Motilal Oswal Research, said, “India faced additional US tariffs as high as 50 per cent in mid-2025, but these were subsequently reduced to 10 per cent until the end of July. Meanwhile, Bangladesh and Indonesia secured trade arrangements with tariffs of 19 per cent each and Vietnam faces 20 per cent. This convergence has placed India on a broadly level playing field with its key competitors in the US market.”
He further added that while India currently accounts for only 4.5 per cent of global apparel trade, there remains significant scope to increase market share as international brands diversify sourcing beyond China.
Industry Continues to Face Competitive Challenges
Ratiraj Thibwe, CEO at Choice Capital, said that the textile industry has experienced persistent pressure over the past several years due to structural disadvantages rather than poor management.
The report notes that while Bangladesh and Vietnam secured preferential market access through trade agreements, Indian exporters continued to face duties of 9–12 per cent in the European Union and the United Kingdom, despite remaining competitive on quality.
FTAs Improve Market Visibility
According to the report, the recent trade agreements with the UK, EU and the US have improved business visibility for the sector.
It states that buyers have already begun conducting factory audits in anticipation of shifting sourcing orders to India.
The report also notes that the IPO market has become more attractive as stronger forward revenue visibility has improved investor sentiment.
Textile stocks have witnessed increased market attention following the implementation of the UK FTA, while private equity investors are also expected to view public market listings as an opportunity for exits.
Arun Kejriwal, an independent analyst, said, “Textile companies, particularly those based in Gujarat, have benefited from the incentives such as support for solar projects and tax benefits on capital investments.”
Abhinav Munshi, Co-Founder & Managing Partner, Razor Capital, said the textile IPO market could strengthen with tangible progress towards resolving the West Asia conflict, which could reduce energy supply risks. He added that the resilience shown by the Indian economy and financial markets despite global and domestic challenges could support investor confidence.