- Price Band of ₹305/– ₹321/- per Equity Share bearing face value of ₹10/- each (“Equity Shares”)
- The opening date for the bid and offer is Thursday, December 19, 2024. Monday, December 23, 2024 is the closing date.
- There are multiples of 46 equity shares following the minimum bid lot of 46 equity shares.
- The equity share’s face value is 30.50 times the floor price, and the cap price is 32.10 times the face value.
RISKS FOR INVESTORS
December 16, 2024, Mumbai: Sanathan Textiles Limited manufactures textile yarn through three business verticals, which include: Yarn made of polyester
For its first public offering, the company has set the price range of ₹305/- to ₹321/- per equity share of face value ₹10/- each for cotton yarn goods, technical textile products, and yarns for industrial applications.
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 following the minimum of 46 equity shares.
The IPO is a mix of fresh issue of up to Rs 4000 million and an offer of sale of up to Rs 1500 million.
The proceeds of its new issuance would be used to the extent of Rs 1600 million to fully or partially repay or prepay some of the Company’s existing borrowings; Rs 1400 million will be invested in Sanathan Polycot, one of its subsidiaries. Private Limited, for the full or partial repayment and/or prepayment of certain loans taken out by its subsidiary, Sanathan Polycot Private Limited; and for general business purposes.
Among our peer group, Sanathan Textiles is one of the few Indian enterprises that specialises in polyester, cotton, and technical textiles, which are used in a variety of end-use sectors, such as automotive, healthcare, construction, sports and outdoor, and protective apparel) sectors, and as of Fiscal 2024, our market share in the Indian textile yarn industry as a whole was 1.7%, based on our operational revenue. The CRISIL Report is the source. Currently, all the three yarn verticals are housed under a single corporate entity. This has made it easier for us to expansion into new markets, which has enabled us to provide a wide range of services to clients in other industries. We have about 3,200 active yarn product variants as of September 30, 2024 (i.e., yarn goods produced by us throughout the time April 1, 2021 to September 30, 2024) and more than 45,000 stock keeping units (SKUs), and capability to manufacture a diversified product portfolio of more than 14,000 varieties of yarn products and more than 190,000 SKUs that are used in various forms and for varied end uses.
The company also has a strong focus on value-added products, including dope-dyed, superfine/micro, functional, industrial, technical yarns, cationic dyeable, and specialty yarns. These products are created through extensive in-house research and are customized to meet specific customer requirements, offering unique characteristics that differentiate them from standard products. Sanathan Textiles’ manufacturing facility in Silvassa has seen significant expansion, and as of June 30, 2024, it boasts a total installed capacity of 223,750 MTPA across the three yarn verticals. DAM Capital Advisors Limited, and ICICI Securities Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue. The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional investors, and not less than 35% of the offer shall be available for allocation to retail individual investors.