Sanathan Textiles IPO: Sanathan Textiles Limited, a prominent yarn manufacturer in India, is set to launch its Initial Public Offering (IPO) on December 19, 2024. The company aims to raise ₹550 crore through this public issue, which includes a fresh issue of ₹400 crore and an offer-for-sale (OFS) of ₹150 crore by promoter entities.
IPO Details:
Issue Period: December 19, 2024 – December 23, 2024
Price Band: ₹305 to ₹321 per equity share
Face Value: ₹10 per share
Lot Size: 46 shares
Minimum Investment: ₹14,030 (at the upper price band)
Listing Exchanges: BSE and NSE
Issue Structure:
Fresh Issue: ₹400 crore
Offer for Sale (OFS): ₹150 crore
Total Issue Size: ₹550 crore
Investor Reservation:
Qualified Institutional Buyers (QIBs): 50% of the offer
Non-Institutional Investors (NIIs): 15% of the offer
Retail Individual Investors (RIIs): 35% of the offer
Company Overview:
Sanathan Textiles IPO: Incorporated in 2005, Sanathan Textiles Limited is a leading manufacturer of polyester and cotton yarns in India. The company’s operations are divided into three primary verticals:
1. Polyester Yarn Products: Contributing approximately 77% to the company’s revenue, this segment includes a wide range of polyester yarns catering to various industries.
2. Cotton Yarn Products: Accounting for about 19% of the revenue, this segment supplies high-quality cotton yarns to both domestic and international markets.
3. Yarns for Technical Textiles and Industrial Uses: Serving sectors such as automotive, healthcare, construction, sports, and outdoor activities, this segment offers specialized yarns designed for technical applications.
Sanathan Textiles IPO: As of June 30, 2024, Sanathan Textiles had a robust distribution network comprising over 925 distributors across seven countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel. The company boasts more than 3,200 active yarn varieties and over 45,000 stock-keeping units (SKUs) as of September 30, 2024.
Financial Performance:
FY 2023-24:
Revenue: ₹2,979.8 crore
Net Profit: ₹133.85 crore
Q1 FY 2024-25 (Three months ended June 30, 2024):
Revenue: ₹787.76 crore
Net Profit: ₹50.07 crore
Utilization of IPO Proceeds:
Sanathan Textiles IPO: The net proceeds from the IPO are planned to be utilized for the following purposes:
1. Debt Repayment: A portion of the funds will be allocated towards repaying or pre-paying certain borrowings availed by the company, thereby strengthening the balance sheet.
2. Investment in Subsidiary: Investment in Sanathan Polycot, a wholly-owned subsidiary, to support its growth and expansion initiatives.
3. General Corporate Purposes: Funds will also be used for general corporate activities, including working capital requirements and other operational needs.
Promoter Details:
Sanathan Textiles IPO: The promoter group participating in the OFS includes:
Paresh Vrajlal Dattani
Ajay Vallabhdas Dattani
Anilkumar Vrajdas Dattani
Dinesh Vrajdas Dattani
Vajubhai Investments Private Limited
Vallabhdas Dattani HUF
Sonali Ajaykumar Dattani
Dattani Dineshkumar Vrajdas HUF
Beena Paresh Dattani
Anilkumar Vrajdas Dattani HUF
Key Dates:
Anchor Investor Bidding: December 18, 2024
IPO Opening Date: December 19, 2024
IPO Closing Date: December 23, 2024
Basis of Allotment Finalization: December 24, 2024
Refunds Initiation: December 26, 2024
Credit of Shares to Demat Accounts: December 26, 2024
Listing Date: December 27, 2024