Sanathan Textiles IPO GMP Indicates Nearly 8% Premium Ahead Of Launch
Sanathan Textiles IPO, comprising a fresh issue of Rs 400 crore and an offer-for-sale worth Rs 150 crore, will be open for bids from 19-23 Dec. Shares will debut on the NSE and BSE on Dec. 27.
The initial public offering of Sanathan Textiles Ltd. has been garnering decent interest in the unlisted market ahead of its launch.
Shares of the company were seen trading at a grey market premium (GMP) of Rs 25 apiece at 12:29 pm on Wednesday, a day before the launch of the mainboard issue on Dec. 19. According to InvestorGain, Sanathan Textiles IPO GMP commanded a premium of 7.79% over the upper price band.
Shares of Sanathan Textiles Ltd. are projected to debut at Rs 346 on the NSE and BSE as per the latest GMP.
Note: GMP, or grey market price, is not an official price quote for the stock and is based on speculation.
Investors interested in the Sanathan Textiles IPO can place their bids between Dec. 19 and Dec. 23. The allotment of shares in the Rs 550-crore IPO is scheduled to be finalised on Dec. 24.
Sanathan Textiles Ltd. will initiate the refunds for the non-allottees on Dec. 26. Bidders allotted shares in the Sanathan Textiles IPO will receive shares in their Demat accounts on the same day.
Sanathan Textiles shares are set to be listed on the NSE and BSE on Dec. 27. Those looking to invest must check out these key details before taking the final call.
Sanathan Textiles IPO: Key Details
A book-built issue, the Sanathan Textiles IPO consists of a combination of a fresh issue of 1.25 crore shares worth Rs 400 crore and an offer-for-sale (OFS) portion of 47 lakh shares, amounting to Rs 150 crore.
The IPO price band has been set between Rs 305 and Rs 321 at the face value of Rs 10 per share. Retail investors may bid in the IPO with a minimum lot size of 46, totalling Rs 14,766 per application.
Sanathan Textiles has appointed DAM Capital Advisors Ltd. and ICICI Securities Ltd. as the book-running lead managers for the issue, whereas Kfin Technologies Ltd. is its registrar.
Use of Proceeds
Sanathan Textiles Ltd. has proposed to utilise the net proceeds from the fresh issuance of shares to settle its debts and invest in its subsidiary, Sanathan Polycot Pvt. A part of the money raised in the public offer will also be used for general corporate purposes and issue-related expenses.
About Sanathan Textiles Ltd
Sanathan Textiles Ltd. is a polyester yarn manufacturer and a global supplier of cotton yarn. Its business can be broadly classified into three segments: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses.
Sanathan Textiles' products are used in various sectors, including automotive, healthcare, construction, sports and outdoor activities, and protective clothing.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
