The Sanathan Textiles Limited IPO has officially opened for subscription today, December 19, 2024, with a price band set between ₹305 to ₹321 per equity share. The company, which specializes in polyester and cotton yarn production, aims to raise ₹550 crore through a combination of fresh shares and Offer for Sale (OFS). The public issue is set to list on both the BSE and NSE.
Sanathan Textiles IPO: Market Reaction and Grey Market Premium
Ahead of the IPO’s subscription period, Sanathan Textiles shares have garnered attention in the grey market, trading at a premium of ₹41 per share. This reflects positive investor sentiment even before the public issue officially opens. The company is expecting robust interest, with bidding open until December 23, 2024.
Subscription Details
By 2:36 PM on Day 2 of the bidding process, the IPO had been subscribed 1.04 times overall. The retail portion has been oversubscribed, booking 1.66 times, while the Non-Institutional Investor (NII) segment stands at 0.96 times.
Key Details of the Sanathan Textiles IPO
- IPO Price Band: ₹305 to ₹321 per share.
- IPO Size: The company aims to raise ₹550 crore, with ₹400 crore through fresh shares and ₹150 crore through an Offer for Sale (OFS).
- Lot Size: The minimum lot size for bidding is 46 shares, with the minimum investment amount standing at approximately ₹14,746 per application.
- IPO Dates: Subscription period runs from December 19 to December 23, 2024.
- IPO Allotment Date: Likely to be December 24, 2024.
- IPO Registrar: KFin Technologies Limited is the official registrar.
- IPO Lead Managers: DAM Capital Advisors and ICICI Securities are leading the issue.
- Listing Date: Shares are expected to list on December 27, 2024.
Expert Opinions: Is Sanathan Textiles a Good Investment?
There are mixed opinions regarding the IPO’s investment potential.
- Akriti Mehrotra, a Research Analyst at StoxBox, has given the issue an “Avoid” rating, citing the company’s financial and operational risks. Despite a growth strategy focusing on production expansion and recycling, Mehrotra believes these factors make the IPO less attractive for investors at present.
- Anshul Jain, Head of Research at Lakshmishree Investment and Securities, offers a more optimistic view, recommending the IPO for listing gains. According to Jain, the upper price band of ₹321 is below the fair price of the stock, which he estimates to be around ₹355 to ₹360. Therefore, he suggests investors apply with an eye on potential short-term gains.
With the Sanathan Textiles IPO attracting attention in the grey market and showing promising early subscription numbers, it has sparked investor interest. However, potential investors should weigh expert opinions and the company’s financial health before making a decision. For those seeking listing gains, it may be an opportunity to consider, but caution is advised for long-term investors.
