Sanathan Textiles IPO Day 3 Live Updates: Key Highlights, Subscription Status, and Insights

Sanathan Textiles IPO Day 2 Subscription Status 

(December 20, 2024, End of Day)

On the second day of bidding, the Sanathan Textiles IPO was subscribed 1.53 times the total shares on offer.

• Non-institutional investors (NIIs) subscribed 1.61 times their allocated portion. 
• While Retail investors subscribed 2.32 times the shares set aside for them. 
• Qualified institutional buyers (QIBs) recorded 0.1 times subscription rate.

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 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 Business Overview

Sanathan Textiles is a leading manufacturer of polyester yarns and a global supplier of cotton, polyester, and technical textile yarns. With three distinct yarn business verticals, the company offers a wide range of yarns used across various industries and applications.

From April 1, 2020, to December 31, 2023, Sanathan Textiles served 2,588 customers, providing yarns for products such as apparel, home furnishings, ropes, seatbelts, sportswear, PPE, and more.

The company operates an in-house testing facility with equipment for denier testing, tensile strength assessment, and color evaluation. Embracing technology and digitization, it ensures efficient planning and production. Sanathan Textiles also has an innovation team focused on developing value-added products and custom solutions, which are key to customer loyalty and higher profit margins.

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.