Sanathan Textiles IPO Day 2 Live Updates: Key Highlights, Subscription Status, and Insights
Founded in 2005, Sanathan Textiles Limited is a manufacturer of polyester yarn and a global supplier of cotton yarn. The company's initial public offering (IPO) commenced on December 19, 2024, and will close on December 23, 2024.
Sanathan Textiles IPO Details
- The Sanathan Textiles IPO, valued at ₹550.00 crore is a book-built issue comprising a fresh issue of 1.25 crore shares worth ₹400.00 crore and an offer for sale (OFS) of 0.47 crore shares amounting to ₹150.00 crore.
- The IPO opened for subscription on December 19, 2024, and will close on December 23, 2024.
- Allotments are expected to be finalised on Tuesday, December 24, 2024, with the listing on BSE and NSE scheduled for Friday, December 27, 2024.
- The price band for the IPO is set between ₹305 and ₹321 per share.
- The minimum application lot size is 46 shares, requiring a retail investment of ₹14,766. sNII must apply for at least 14 lots (644 shares), totalling ₹2,06,724, while bNII need to apply for 68 lots (3,128 shares), amounting to ₹10,04,088.
- Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) and ICICI Securities Limited are the book-running lead managers for the IPO, with Kfin Technologies Limited serving as the registrar.
Use of Proceeds
The company intends to use the net proceeds for the following purposes: repaying and/or pre-paying, in whole or in part, certain borrowings taken by the company; investing in its subsidiary, Sanathan Polycot Private Limited, for the repayment and/or pre-payment, in whole or in part, of borrowings availed by the subsidiary; and for general corporate purposes.
Sanathan Textiles IPO Day 2 Subscription Status
(December 20, 2024, 01:20:00 PM)
On the second day of bidding, the Sanathan Textiles IPO was subscribed 0.97 times the total shares on offer. Non-institutional investors (NIIs) subscribed 0.88 times their allocated portion, while retail investors subscribed 1.57 times the shares set aside for them. Qualified institutional buyers (QIBs) recorded nil subscription rate.
Sanathan Textiles IPO Day 1 Subscription Status
(December 19, 2024, End of Day)
On the first day of bidding, the Sanathan Textiles IPO was subscribed 0.48 times the total shares available. NIIs subscribed 0.33 times their allocated portion, while retail investors subscribed 0.82 times the shares reserved for them. QIBs saw nil subscription rate.
Sanathan Textiles Business Overview
Sanathan Textiles operates through three main yarn business verticals: polyester yarn, cotton yarn, and yarns for technical textiles used in industries like automotive, healthcare, construction, sports, and protective clothing.
As of September 30, 2024, the company produced over 3,200 active yarn varieties and 45,000 SKUs, with the capacity to manufacture a portfolio of over 14,000 yarn types and 190,000 SKUs for diverse applications. In fiscal years 2023 and 2024, Sanathan Textiles exported its products to 14 and 27 countries, respectively. The company has over 925 distributors across seven countries, including India, Argentina, Singapore, Germany, and Israel. Its manufacturing facility is located in Silvassa, and its client base includes well-known companies like Welspun India, Valson Industries, Banswara Syntex, and Tulip Elastics, among others.
Sanathan Textiles Financial Highlights
- Revenue dropped by 11.17% from Rs 3,329 crore in FY23 to Rs 2,958 crore in FY24.
- Profit after tax (PAT) decreased by 12.37% between the financial year ending March 31, 2023 and March 31, 2024, from Rs 153 crore to Rs 134 crore.
Key Ratios
|
Years |
FY24 |
|
ROE |
11.09% |
|
ROCE |
11.80% |
|
EBITDA Margin |
7.89% |
|
PAT Margin |
4.53% |
|
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