Sanathan Textiles IPO price band fixed at ₹305-321 per share. Check details

Sanathan Textile IPO: Yarn manufacturer Sanathan Textile has fixed the price band for its upcoming initial public offering (IPO) at ₹305 to ₹321 per equity share of a face value of ₹10 each.

The floor price and cap price are 30.50 times and 32.10 times the face value of the equity shares, respectively.

Sanathan Textile IPO is scheduled to open on Thursday, December 19, and close on Monday, December 23. The bidding for anchor investors will open on Wednesday, December 18.

Investors can bid for a minimum of 46 shares in one lot and in multiples thereafter.

Sanathan Textile IPO is a mix of a fresh issue of ₹400 crore and an offer for sale (OFS) of ₹150 crore by promoter selling shareholders, aggregating to the issue size of ₹550 crore.

Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani, Dinesh Vrajdas Dattani, Vajubhai Investments Private Limited, Vallabhdas Dattani HUF, Sonali Ajaykumar Dattani, Dattani Dineshkumar Vrajdas HUF, Beena Paresh Dattani, and Anilkumar Vrajdas Dattani HUF are the promoter selling shareholders in the OFS.

The company plans to utilise the fresh funds from the IPO for repayment of certain borrowings availed by the company, investment in a subsidiary for repayment of certain borrowings availed by the subsidiary, and general corporate purposes.

About Sanathan Textile

Sanathan Textile is one of the few companies amongst its peer group in India with a presence across the polyester, cotton, and technical textile sectors. The company has a market share of 1.7% in the overall Indian textile yarn industry as of fiscal 2024 in terms of operating income, as per a CRISIL report.

As of September 30, 2024, it had more than 3,200 active varieties of yarn products and more than 45,000 stock-keeping units (SKUs), with the capability to manufacture a diversified product portfolio of more than 14,000 varieties of yarn products and more than 190,000 SKUs that are used in various forms and for varied end uses.

The company's business is divided into three separate yarn business verticals, consisting of: (a) Polyester yarn products; (b) Cotton yarn products; and (c) Yarns for technical textiles and industrial uses.

The company manufactures products at its facility at Silvassa, which has a total installed capacity of 223,750 MTPA across the three yarn verticals.

The global yarn industry, as well as the demand for yarn products, is expected to grow over the next few years. The Indian textile and apparel industry is also projected to grow at a CAGR of 6-7% from fiscal 2024 to fiscal 2028. During this period, exports are expected to grow at a CAGR of 4.5-5.5%, while the domestic industry is expected to grow at a slightly higher pace of 7-8%.

DAM Capital and ICICI Securities are the book-running lead managers to Sanathan Textile IPO while KFin Tech is the registrar to the public offer.

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