This paper explains how the desirable -{111}< hkl > texture of high intensity forms and an undesirable orientation component near {411} < hkl > arises in heavily rolled IF steel. A commercial grade material was warm rolled 75% cold rolled 80% and annealed in a pre-heated air furnace at 710 degrees C. The X-ray measured global texture showed the intensity of a fibre was stronger than y fibre. During annealing this was replaced by a discontinuous and peak type y fibre. The maximum intensity spread from {554}< 225 > to {111}< 123 > which was accompanied by a weaker a component at {411}< 148 >. The longitudinal and rolling plane microstructure of the deformed material showed that a and y fibre grains maintain their typical microstructural appearance i.e. the a grains with coarse substructure and the y grains with fine fragmented substructure. The a grains, which are relatively uniform in terms of orientation at lower reductions, became unstable after cold rolling and produced deformation boundaries of the same nature as in y grains. These behaviors can be explained by the well-known Deformation Banding theory for BCC metals. The deformation banding in a grains produce recrystallized nuclei of {411}< uvw > orientation and can be explained by either oriented nucleation or micro-growth selection for the particular orientation belonging to the a fibre. The high intensity spread from {554}< 225 > to {111}< 123 > component in the annealing texture is explained by nucleation at the intersection of two sets of in-grain shear bands, but such configuration are rare in conventionally cold rolled material up to 85% reduction.