The Initial Public Offering (IPO) of Sanathan Textiles will open for bidding on Thursday, December 19, 2024, with a price band set between Rs 305 and Rs 321 per share. The three-day subscription window will close on Monday, December 23, 2024. Investors can apply for a minimum of 46 equity shares, with additional applications in multiples thereafter.
About Sanathan Textiles
Founded in 2005, Sanathan Textiles is a leading manufacturer of polyester yarn and a global supplier of cotton yarn. The company operates in three distinct verticals: polyester yarn, cotton yarn, and technical and industrial textiles, serving diverse sectors such as automotive, healthcare, construction, sports, and outdoor activities.
The company aims to raise a total of Rs 550 crore through the IPO, which includes a fresh share sale of Rs 400 crore and an offer-for-sale (OFS) of up to Rs 150 crore by the promoters and promoter group entities. The anchor book for the issue will open on Wednesday, December 18, 2024.
Financial Performance
As of June 30, 2024, Sanathan Textiles reported a net profit of Rs 50.07 crore with a revenue of Rs 787.76 crore. For the financial year 2023-24, the company posted a net profit of Rs 133.85 crore and revenue of Rs 2,979.8 crore. The company serves more than 925 distributors across seven countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
IPO Details and Utilization of Proceeds
The net proceeds from the fresh issue will be utilized for the repayment or pre-payment of borrowings, investment in its subsidiary Sanathan Polycot, and general corporate purposes. The proceeds from the OFS will go to the selling shareholders.
The company plans to allocate 50% of the net offer to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to non-institutional investors (NIIs). At the upper end of the price band, Sanathan Textiles will have a market capitalization of around Rs 2,700 crore post-listing.
Listing and Lead Managers
The shares are expected to be listed on both the BSE and NSE on December 27, 2024. Dam Capital Advisors (formerly IDFC Securities) and ICICI Securities are the book running lead managers for the IPO, while Kfin Technologies Limited is the registrar for the issue.
This IPO marks a significant milestone for Sanathan Textiles as it seeks to strengthen its position in the global textile market and expand its footprint.
