23-Apr-2024
2 mins read
Sanathan Textiles has filed IPO papers with market regulator SEBI to raise Rs 800 crore via initial public offering (IPO). This upcoming IPO will be a mixture of fresh issue and offer for sale. According to DRHP papers, the fresh issue is Rs 500 crore, and OFS is Rs 300 crore by promoter and promoter group entities.
Sanathan Textiles may consider a pre-IPO placement of equity shares amounting to Rs 100 crores. If this is undertaken, the size of the fresh issue will be reduced.
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About Sanathan Textiles Limited
Sanathan Textiles is a yarn manufacturer in India with a presence across the polyester, cotton and technical textile sectors. All three yarn verticals are present under the single corporate entity. This facilitates diversification into new segments which in turn has helped the company in serving a large number of customers.
Sanathan textiles products are manufactured at their facility at Silvassa. Over the years, the company has scaled up its production, it has a total capacity of 221,050 MTPA across three yarn vertices.
They manufacture polyester chips using purified terephthalic acid and monoethylene glycol and convert the chips into polyester yarn through various intermediate processing to impart specific properties to the yarn.
Objectives of Sanathan Textiles IPO
The net funds received from the fresh issue worth Rs 210 crore will be used for investment in the company’s subsidiary, Sanathan Polycot Private Limited. The funds will be used to meet the working capital requirements. The remaining funds, Rs 175 crore, will be used to repay debts and for general corporate purposes.
Sanathan Textiles Financials in Brief
Sanathan Textiles' consolidated revenue from operations during fiscal year 2023 was Rs 3329.21 crore, and its net profit stood at Rs 152.74 crore.
In January 2022, the company filed draft documents with market regulator SEBI to mobilize funds through an IPO. It received SEBI’s nod in May 2022 to open the issue but the company stepped back.
Dam Capital Advisors and ICICI Securities Limited are the book-running lead managers for Sanathan Textiles' IPO issue. KFin Technologies Limited is the registrar for the issue.
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