Sanathan Textiles Shares Debut At 32% Premium Over Issue Price
The maiden issue consisted of a fresh issue of Rs 400 crore and an offer for sale of Rs 150 crore.
Shares of Sanathan Textiles Ltd. debuted on the National Stock Exchange at Rs 422.30 apiece, at a premium of 31.56% over the issue price of Rs 321. The stock listed on the BSE at Rs 419.1 per share, marking a premium of 30.56%.
The Rs 550-crore initial public offering was subscribed 35.12 times on the final day of bidding. The last day marked a manifold climb as compared to 1.43 times subscription clocked till day two. The IPO cumulatively received bids worth Rs 14,229.11 crore.
The maiden issue consisted of a fresh issue of Rs 400 crore and an offer for sale of Rs 150 crore. The price band was set at Rs 305-Rs 321 per share, valuing the company at Rs 2,709 crore at the upper end.
DAM Capital Advisors Ltd. and ICICI Securities Ltd. were the book-running lead managers, while KFin Technologies Ltd. was the registrar for the offer, as per the draft red herring prospectus.
The company will use the proceeds for repayment of borrowings, investment in the subsidiary Sanathan Polycot Pvt. and for general corporate purposes.
Business
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.
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.
Sanathan Textiles aims to more than double its yarn production capacity to close to 5 lakh tonnes per annum by the financial year 2027 from the current 2.23 lakh tonnes per year.
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.
