The IPO is a mix of fresh issue of up to Rs 4000 million and an offer of sale of up to Rs 1500 million.
Sanathan Textiles is engaged in the business of manufacturing textile yarn, from three business verticals, consisting of polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses, has fixed the price band of Rs 305to Rs 321 per equity share of face value Rs 10 each for its maiden initial public offer.
The Initial Public Offering (IPO or Offer) of the company will open for subscription on Thursday, December 19, 2024, and close on Monday, December 23, 2024. Investors can bid for a minimum of 46equity shares and in multiples of 46Equity Shares thereafter.
The IPO is a mix of fresh issue of up to Rs 4000 million and an offer of sale of up to Rs 1500 million.
The proceeds from its fresh issuance will be utilized to the extent of Rs 1600 million for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings availed by the Company; Rs 1400 million for investment in its subsidiary viz. Sanathan Polycot, for repayment and/ or pre-payment, in full or part, of certain borrowings availed by its subsidiary viz. Sanathan Polycot; and general corporate purpose.
Sanathan Textiles is one of the few companies (amongst our peer group) in India with presence across the polyester, cotton, and technical textile (which find application in multiple end-use segments including automotive, healthcare, construction, sports and outdoor, and protective clothing) sectors and based on our operating income, we had a market share of 1.7 per cent in the overall Indian textile yarn industry as of Fiscal 2024. (Source: CRISIL Report). Currently, all the three yarn verticals are housed under a single corporate entity. This has facilitated our diversification into new segments which in turn has helped us in serving a large number of customers across various sectors. As on September 30, 2024, we have more than 3,200 active varieties of yarn products (i.e. yarn products manufactured by us during the period April 1, 2021 to September 30, 2024) and more than 45,000 stock keeping units (SKUs), and capability to manufacture a diversified product portfolio of more than 14,000 varieties of yarn products and more than 190,000 SKUs that are used in various forms and for varied end uses.
The company also has a strong focus on value-added products, including dope-dyed, superfine/micro, functional, industrial, technical yarns, cationic dyeable, and specialty yarns. These products are created through extensive in-house research and are customized to meet specific customer requirements, offering unique characteristics that differentiate them from standard products. Sanathan Textiles’ manufacturing facility in Silvassa has seen significant expansion, and as of June 30, 2024, it boasts a total installed capacity of 223,750 MTPA across the three yarn verticals.
DAM Capital Advisors, and ICICI Securities are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
The Offer is being made through the book-building process, wherein not more than 50 per cent of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15 per cent of the offer shall be available for allocation to non-institutional investors, and not less than 35 per cent of the offer shall be available for allocation to retail individual investors.