Sanathan Textiles Ltd. raised Rs 165 crore from anchor investors on Wednesday ahead of the launch of its initial public offering.
The yarn manufacturing company allotted 51.4 lakh shares at Rs 321 apiece to 20 anchor investors, including Nippon India Small Cap Fund, SBI Magnum Children's Benefit Fund, HDFC Manufacturing Fund and Kotak Manufacture In India Fund, according to an exchange filing.
Nippon India Small Cap Fund secured 18.18% of the allocation, SBI Magnum Children's Benefit Fund acquired 15.15% and HDFC Manufacturing Fund received 12.12%.
Nine domestic mutual funds have applied through a total of 14 schemes. They have collectively netted 74.25% of the anchor portion for approximately Rs 122 crore, the filing stated.
SBI Magnum Children's Benefit Fund, through two of its funds, has obtained an allocation of 15.15%, while Nippon India Small Cap Fund acquired 18.18%
The IPO, which opens on Thursday, is a mix of both fresh issue and offer for sale of Rs 400 crore and Rs 150 crore respectively. The price band is set at a range of Rs 305 to Rs 321 per share. The maiden issue is to be worth Rs 550 crore at the upper end of the price band.
The company plans to use the proceeds of the issue to repay borrowings and for general corporate purposes, as well as to invest in its subsidiary, Sanathan Polycot Pvt.
DAM Capital Advisors Ltd. and ICICI Securities Ltd. are the book-running lead managers for the issue and KFin Technologies Ltd. is the registrar for the offer, according to the draft red herring prospectus.
Sanathan Textiles operates across the polyester, cotton, and technical textile segments, holding a 1.7% market share in India's overall textile yarn industry as of the last financial year, according to Crisil.
All three yarn divisions are integrated within a single corporate structure. The company offers an extensive portfolio of over 3,200 active yarn varieties, with a strong focus on value-added products like dope-dyed, superfine/micro, functional, industrial, and technical yarns, as well as cationic dyeable and specialty yarns.
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