Sanathan Textiles IPO opens on December 19; check all details here

The initial public offering (IPO) of Sanathan Textiles shall open for bidding on Thursday, December 19. The company has fixed its price band in the range of Rs 305-321 apiece. Investors can apply for a minimum of 46 equity shares and its multiples thereafter. The three-day bidding for the issue shall conclude on Monday, December 23.

Incorporated in 2005, Sanathan Textiles is a polyester yarn manufacturer and a global supplier of cotton yarn. Its business is divided into three separate yarn business verticals, consisting of polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses such as automotive, healthcare, construction, sports and outdoor activities.

The company is looking to raise a total of Rs 550 crore via 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. Anchor book for the issue opens on Wednesday, December 18.

Sanathan Textiles had more than 925 distributors in 7 countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel as of June 30, 2024. The company had more than 3,200 active varieties of yarn products and more than 45,000 stock-keeping units (SKUs) as of September 30, 2024.

The net proceeds from the issue shall be utilized towards repayment or pre-payment of certain borrowings availed by the company; investment in its subsidiary- Sanathan Polycot; and general corporate purposes. Proceeds from the OFS shall go to the selling shareholders.

For the three months ended on June 30, 2024, the company reported a net profit of Rs 50.07 crore with a revenue of Rs 787.76 crore. The company's net profit came in at Rs 133.85 crore with a revenue of Rs 2,979.8 crore for the financial year 2023-24.

Sanathan Textiles has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of the net offer. Retail investors will have 35 per cent of the allocation in the IPO. The company will command a total market capitalization close to Rs 2,700 crore.

Dam Capital Advisors (formerly IDFC Securities) and ICICI Securities are the book running lead managers of the Sanathan Textiles IPO, while Kfin Technologies Limited is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE on December 27, Friday.