Sanathan Textiles Limited Sets Price Band for IPO at ₹305-₹321 per Share

 

Mumbai: "Sanathan Textiles Limited", a prominent manufacturer of textile yarn products, has set the price band for its maiden 'Initial Public Offering' (IPO) at ₹305 to ₹321 per equity share, with a face value of ₹10 each. The IPO will open for subscription on Thursday, December 19, 2024, and will close on Monday, December 23, 2024. Investors can bid for a minimum of 46 equity shares and in multiples thereafter.

The IPO comprises a fresh issue of up to ₹4,000 million and an offer for sale of up to ₹1,500 million. The company plans to utilize the proceeds from the fresh issuance for various strategic purposes, including:

• ₹1,600 million for the repayment or pre-payment of certain outstanding borrowings.
• ₹1,400 million for an investment in its subsidiary, Sanathan Polycot Private Limited, to fund repayment and/or pre-payment of its subsidiary’s borrowings.
• The remaining funds will be used for general corporate purposes.

"Sanathan Textiles" operates with three key business verticals: polyester yarn, cotton yarn, and technical textiles, with a focus on diverse applications, including automotive, healthcare, construction, sports, and protective clothing. The company’s market share in the Indian textile yarn industry was 1.7% as of fiscal year 2024, positioning it as a significant player within the sector.

The company is known for its diversified portfolio, manufacturing over 14,000 types of yarn products and more than 190,000 stock-keeping units (SKUs). As of September 30, 2024, 'Sanathan Textiles' had over 3,200 active yarn varieties. The company also places a strong emphasis on value-added products, such as dope-dyed, superfine, and specialty yarns, developed through extensive in-house research.

Sanathan Textiles' manufacturing facility in Silvassa boasts a total installed capacity of 223,750 MTPA as of June 30, 2024, across its three yarn verticals, enabling the company to serve a wide range of industries.

The IPO will be managed by DAM Capital Advisors Limited and ICICI Securities Limited as the book-running lead managers, with KFin Technologies Limited acting as the registrar.

This IPO marks an important milestone for Sanathan Textiles as it seeks to further expand its operations and strengthen its position in the Indian textile industry.