Sanathan Textiles Limited IPO Day 1 Live Updates: Key Highlights, Subscription Status, and Insights
Incorporated in 2005, Sanathan Textiles Limited is a polyester yarn manufacturer and a global supplier of Cotton Yarn. The company’s initial public offering (IPO) commenced today, December 19, 2024, and will remain open until December 23, 2024.
IPO Day 1 Subscription Status
(December 19, 2024, 12:24:15 PM)
On the opening day of bidding, the Sanathan Textiles IPO recorded a subscription level of 0.18 times the total shares available.
The Non-Institutional Investors (NIIs) subscribed to 0.07 times their allocated quota,
The Retail Investors segment subscriptions reached 0.33 times their allocation.
In contrast, the Qualified Institutional Buyers (QIBs) segment, although participating, registered a subscription rate of 0.00 times.
IPO Details
- The Sanathan Textiles IPO is a book-built issue worth ₹550.00 crores, comprising a fresh issue of 1.25 crore shares amounting to ₹400.00 crores and an offer for sale of 0.47 crore shares totalling ₹150.00 crores.
- The IPO opened for subscription on December 19, 2024, and will close on December 23, 2024.
- The allotment of shares is expected to be finalized on Tuesday, December 24, 2024, with the shares scheduled to be listed on the BSE and NSE on Friday, December 27, 2024, as the tentative listing date.
- The price band for the IPO is set at ₹305 to ₹321 per share, with a minimum application lot size of 46 shares.
- Retail investors need to invest at least ₹14,766 for a single lot. For sNII, the minimum investment is 14 lots (644 shares), amounting to ₹2,06,724, while for bNII, it is 68 lots (3,128 shares), requiring an investment of ₹10,04,088.
- The book-running lead managers for the Sanathan Textiles IPO are Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) and ICICI Securities Limited, with Kfin Technologies Limited serving as the registrar for the issue.
Use of Proceeds
The company plans to use the net proceeds from the issue for several purposes, including repaying or prepaying, either fully or partially, certain borrowings taken by the company. Additionally, funds will be invested in its subsidiary, Sanathan Polycot Private Limited, to help repay or prepay its borrowings. A portion of the proceeds will also be allocated for general corporate purposes.
Sanathan Textiles Business Overview
Established in 2005, Sanathan Textiles Limited is a leading manufacturer of polyester yarn and a global supplier of cotton yarn. The company operates in three main business segments: polyester yarn, cotton yarn, and technical/industrial yarns used in sectors like automotive, healthcare, construction, sports, and protective clothing.
As of September 30, 2024, the company offered over 3,200 active yarn varieties with 45,000 stock-keeping units (SKUs). It also has the capacity to produce more than 14,000 yarn varieties and 190,000 SKUs for diverse applications.
In Fiscal 2024, Sanathan Textiles exported products to 14 countries and, as of June 30, 2024, had over 925 distributors across 7 countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
The company's manufacturing facility is located in Silvassa, and its clientele includes major multinational, regional, and local companies such as Welspun India, G.M. Fabrics, Premco Global, Banswara Syntex, and AYM Syntex.
Financial Highlights
- Revenue decreased by -11% from Rs. 3,345.02 crore in FY23 to Rs. 2,979.8 crore in FY24.
- Profit after tax (PAT) dropped by -12% between the financial year ending March 31, 2024 and March 31, 2023, from Rs. 152.74 crore to Rs. 133.85 crore, respectively.