· Price Band of ₹305/– ₹321/- per Equity Share bearing face value of ₹10/- each (“Equity Shares”)
· Bid/Offer Opening Date – Thursday, December 19, 2024 and Bid/Offer Closing Date – Monday, December 23, 2024.
· Minimum Bid Lot is 46 Equity Shares and in multiples of 46 Equity Shares thereafter.
· The Floor Price is 30.50 times the face value of the Equity Share and the Cap Price is 32.10 times the face value of the Equity Share.
Sanathan Textiles Limited is a textile yarn manufacturer with three business verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial applications. For its first IPO, the company has set the price range of ₹305/- to ₹321/- per equity share of face value ₹10/-each.
The company’s initial public offering, often known as the “IPO” or “Offer,” will go live on Thursday, December 19, 2024, and end on Monday, December 23, 2024. Investors may place bids for multiples of 46 equity shares after the minimum of 46 equity shares.
An offer of sale of up to Rs 1500 million and a fresh issue of up to Rs 4000 million are both included in the IPO.
A total of Rs 1600 million will be used to repay or partially prepay some of the Company’s outstanding borrowings; Rs 1400 million will be invested in its subsidiary, Sanathan Polycot Private Limited, to repay or partially prepay some of the borrowings made by its subsidiary, Sanathan Polycot Private Limited; and the remaining amount will be used for general corporate purposes.
As one of the few companies in our peer group in India with a presence in the polyester, cotton, and technical textile sectors—all of which find applications in a variety of end-use segments, such as automotive, healthcare, construction, sports and outdoor, and protective clothing—Sanathan Textiles held a 1.7% market share in the Indian textile yarn industry as of Fiscal 2024, based on operating income. The CRISIL Report is the source.At the moment, a single corporate entity houses all three yarn sectors. This has made it easier for us to diversify into new markets, which has allowed us to serve a wide range of clients in different industries.As of September 30, 2024, we have over 45,000 stock keeping units (SKUs) and over 3,200 active yarn product varieties (i.e., yarn products produced by us between April 1, 2021, and September 30, 2024). We are also able to manufacture a diverse product portfolio that includes over 14,000 yarn product varieties and over 190,000 SKUs that are utilized in a variety of ways and for a wide range of end uses.
Value-added products, such as dope-dyed, superfine/micro, functional, industrial, technical, cationic dyeable, and specialty yarns, are another area of emphasis for the company. These goods are the result of in-depth internal study and are tailored to satisfy particular client needs. They have special features that set them apart from other items. With considerable growth, Sanathan Textiles’ Silvassa production plant now has a total installed capacity of 223,750 MTPA across the three yarn verticals as of June 30, 2024.
The issue’s registrar is KFin Technologies Limited, while the book-running lead managers are DAM Capital Advisors Limited and ICICI Securities Limited.
No less than 15% of the offer will be available for allocation to non-institutional investors, no less than 35% of the offer will be available for allocation to retail individual investors, and no more than 50% of the offer will be proportionately available for allocation to qualified institutional buyers through the book-building process.
