Sanathan Textiles IPO: Check GMP, Day 1 Subscription Status, Price Band And More

Sanathan Textiles Ltd.’s initial public offering opened for subscription on Thursday. It has been subscribed 0.45 times, or 45%, as of 5:00 p.m.

The grey market premium of Sanathan Textiles was Rs 60 as of 4:24 p.m. on Thursday, according to Chittorgarh's unit, InvestorGain. The estimated listing price based on the GMP is Rs 381 per share, implying a premium of 18.69%.

The Rs 550-crore IPO consists of a fresh issue of Rs 400 crore and an offer for sale of Rs 150 crore. The price band is set at Rs 305-Rs 321 per share, valuing the company at Rs 2,709 crore at the upper end.

Ahead of the IPO, the yarn manufacturer raised Rs 165 crore through anchor investors, allotting 51.4 lakh shares at Rs 321 each to 20 anchor investors.

DAM Capital Advisors Ltd. and ICICI Securities Ltd. are the book-running lead managers, while KFin Technologies Ltd. is the registrar for the offer, as per the draft red herring prospectus.

The shares will be listed on both BSE as well as NSE. The allotment is expected to be finalised on Dec. 24, with a tentative listing date of Dec. 27.

• Issue opens: Dec. 19.

• Issue closes: Dec. 23.

• Issue price: Rs 305–321 per share.

• Offer for sale: Rs 150 crore.

• Fresh issue: Rs 400 crore.

• Total issue size: Rs 550 crore.

• Lot size: Minimum 46 shares.

• Repayment and/or pre-payment, full or part, of certain borrowings availed by the company.

• Investment in the subsidiary Sanathan Polycot Pvt. for repayment and/or pre-payment, in full or part, of certain borrowings.

• General corporate purposes.

Sanathan Textiles manufactures polyester, cotton, and technical textiles for a variety of end markets, including automotive, healthcare, construction, sports and outdoor, and protective gear. According to Crisil, it accounted for 1.7% of India's total textile yarn industry in the previous fiscal year.

All three yarn divisions are united under a single corporate structure. The company provides a diverse portfolio of over 3,200 active yarn variations, with a strong emphasis on value-added products such as dope-dyed, superfine/micro, functional, industrial, and technical yarns, as well as cationic dyeable and speciality yarns.

In fiscal 2024, revenue from operations was Rs 2,957 crore, compared to Rs 3,329 crore in fiscal 2023 and Rs 3,185 crore in fiscal 2022. The Ebitda stood at Rs 226 crore in fiscal 2024 in comparison to Rs 259 crore in fiscal 2023 and Rs 537 crore in fiscal 2022.

Similarly, net profit was Rs 134 crore, while it was Rs 152 crore in fiscal 2023 and Rs 355 crore in fiscal 2022.

The IPO has been subscribed 0.45 times, or 45%, as of 5:00 p.m. on Thursday.

• Qualified institutional buyers: nil.

• Non-institutional investors: 0.32 times or 32%.

• Retail investors: 0.76 times or 76%.

The grey market premium of Sanathan Textiles was Rs 60 as of 4:24 p.m. on Thursday, according to Chittorgarh's unit, InvestorGain. The estimated listing price based on the GMP is Rs 381 per share, implying a premium of 18.69%.

GMP is not an official price quote for the stock and is based on speculation. 

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.