Sanathan Textiles IPO: Everything you need to know before you subscribe.

The premier yarn manufacturing company, Sanathan Textiles Ltd, is going to list on Dalal Street. Its initial public offering is at ₹550 crore. Going to be a wonderful IPO and this will attract market participants highly, and thus, will remain open for subscription on 19th December, 2024. So let us try and find out the critical features of the IPO covering even the grey market premium price.

📢 Sanathan Textiles Limited IPO

🗓️Date: 19 - 23  Dec,2024

🏷️Price Band: ₹305- ₹321

📦Market Lot: 46 Shares

💰Application Amount: ₹14,766

📏Size: ₹550 Cr Approx

👦Retail Portion: 35%

📃 Retail Form: 1,30,367

📄HNI Small Form: 1,330

📄HNI Big Form: 2,660

🏷️Face Value: ₹10

Sanathan Textiles IPO Dates

Sanathan Textiles IPO is going to open for public subscription on Thursday, 19 December 2024, and will close on Monday, 23 December 2024. The allotment date is 24 December 2024 and the listing date will be 27 December 2024. Five working days are given for investors to place their bids on shares.

The price band for the IPO has been set at ₹305 to ₹321 per share, giving an interval for the investors to place their bids.

Sanathan Textiles IPO Lot Size

The lot size is 46 shares, thus the minimum investment amount for retail investors will be ₹14,766 at the upper price band.

Sanathan Textiles IPO Details

The total size of the IPO is ₹550 crore, which has been split into:

• Fresh Issue: 1.25 crore equity shares aggregating to ₹400 crore.
• Offer for Sale (OFS): 47 lakh shares worth ₹150 crores.

Sanathan Textiles IPO OFS

The OFS part of the issue comprises shares being sold by promoter and promoter group entities, such as:

• Paresh Dattan
• Ajay Dattani
• Vajubhai Investments Pvt Ltd
• Vallabhdas Dattani HUF
• Sonali Dattani, among others

Sanathan Textiles IPO Allotment

Important dates for allotment:

• The allotment shall be finalized on December 24, 2024.
• Demat credit shall happen on December 26, 2024.
• Refunds for unsuccessful applicants shall begin on December 26, 2024.

Sanathan Textiles IPO Listing

Sanathan Textiles shares are expected to get listed on December 27, 2024, on the BSE and NSE, thus making it further liquid for investors.

Sanathan Textiles IPO Aims

The issue proceeds will be used for:

• Repaying or prepaying certain outstanding borrowings.
• Investment in its subsidiary Sanathan Polycot Pvt Ltd.
• General corporate purposes.

Sanathan Textiles IPO Reservation

The IPO shares are reserved as under: 

• 50% for Qualified Institutional Buyers (QIB).
• 35% for Retail Investors.
• 15% for Non-Institutional Investors (NII).

About Sanathan Textile 

Incorporated in the year 2005, Sanathan Textiles Limited is one of the major polyester yarn manufacturers in the world, a global cotton yarn supplier, and technical textiles and industrial yarn leader. It has three core verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles. These cater to automotive, healthcare, construction, sports, and protective clothing. With a strong portfolio of more than 14,000 yarn varieties and 190,000 SKUs, the company had more than 3,200 active product varieties as of September 30, 2024. Sanathan Textiles has an impeccable worldwide platform, with exports to 27 countries and a distribution base of 925 associates through network areas like India, Canada, Germany, Singapore, and so on. Sanathan Textiles has a facility at Silvassa that has state-of-the-art production technology for hassle-free manufacturing for its varied customer clientele, including leading organizations such as Welspun India Limited, AYM Syntex Limited, and Banswara Syntex Limited. This includes the commitment of the company towards innovation, product diversification, and sustainability-driven manufacturing which makes the company stand atop the market in yarn industries. By focusing strategically on expanding the manufacturing capacity of the products, new products being designed, and embracing digitization for sustainable practices, Sanathan Textiles has become one of the most valued polyester, cotton, and technical yarns in industry applications.

Business Overview

The three verticals through which Sanathan Textiles is conducting business are:

• Products made of Polyester Yarn: Suppliers to the fabric manufacturing sector
• Cotton Yarn Products: Suppliers of raw materials for apparel and home textiles.
• Technical Textiles and Industrial Usages: Providing specialty yarns for industrial usage

Invest in Sanathan Textiles IPO?

The issue has a diversified business model, rich growth prospects, and an average GMP. But these factors need to be understood against the following:

Pros:

• Market leader in the polyester yarn space.

• Proceed is used for debt reduction as it strengthens the balance sheet.

• Stable demand scenario in the textile space

the

• Raw Material price volatility

• Volatility in the textile industry.

The Sanathan Textiles IPO comes forward as an exciting investment prospect. Sanathan Textiles offers very strong fundamentals as well as a promising gray market premium, besides presenting the prospects of strategic growth strategies. Its established presence in polyester yarn industries and optimization towards finance is likely to provide the impetus to take one seriously regarding this IPO. But don't forget your financial goals and risk aversion. Happy investing!

Frequently Asked Questions About Sanathan Textiles IPO