The initial public offer (IPO) of Sanathan Textiles received bids for 44,32,74,538 shares as against 1,26,22,950 shares on offer. The issue was subscribed 35.12 times.
The Qualified Institutional Buyers (QIBs) category was subscribed 75.62 times. The Non-Institutional Investors (NIIs) category was subscribed 42.21 times. The Retail Individual Investors (RIIs) category was subscribed 8.93 times.
The issue opened for bidding on 19 December 2024 and it closed on 23 December 2024. The price band of the IPO was fixed between Rs 305 and 321 per share.
The IPO consisted of a fresh issue of Rs 400 crore and an offer for sale of Rs 150 crore by promoter and promoter group.
Out of the proceeds from the fresh issue, Rs 160 crore will be used for repayment or prepayment of certain borrowings, Rs 140 crore towards investment in subsidiary Sanathan Polycot Private Limited for repayment or prepayment of certain borrowings and the balance towards general corporate purposes.
Ahead of the IPO, Sanathan Textiles on Wednesday, 18 December 2024, raised Rs 164.99 crore from anchor investors. The board allotted 51.40 lakh shares at Rs 321 each to 20 anchor investors.
Sanathan Textiles is engaged in manufacturer of polyester yarn and cotton yarn. The company‘s business is divided into three separate yarn business verticals, consisting of: polyester yarn products; cotton yarn products; and yarns for technical textiles and industrial uses. These technical textiles are used in various sectors such as automotive, healthcare, construction, sports and outdoor activities, and protective clothing.
As on September 30, 2024, STL had more than 3,200 active varieties of yarn products 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.
On a consolidated basis, the firm registered consolidated net profit of Rs 50.07 crore and income from operations of Rs 781.13 crore for the three months ended on 30 June 2024.