Sanathan Textiles Shares Debut At 32% Premium Over Issue Price
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.
BusinessÂ
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.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
