Sanathan Textiles IPO booked 45% on first day; check subscription, offer size, price band and other key details

Sanathan Textiles IPO saw a lukewarm response across investor categories on the first day of bidding on Thursday, December 19. The initial public offering of the global cotton yarn supplier was subscribed only 45%.

The mainboard IPO received bids for over 56.67 lakh shares against 1.26 crore shares on offer, as per the NSE data at the end of bidding at 5 pm.

Retail investors booked 76% of their reserved portion of 63.11 lakh shares with bids for 48.12 lakh shares. The Non-Institutional Investors (NIIs) category was booked 32%. The NIIs applied for 8.53 lakh shares against 27.04 lakh shares reserved for them. The Qualified Institutional Buyers (QIBs) applied for only 644 shares against 36.06 lakh shares set aside for the category.

Sanathan Textiles IPO details

Sanathan Textiles IPO is a book-building issue worth ₹550 crore. The IPO consists of a fresh issue of 1.25 crore shares, worth ₹400 crore, and an offer-for-sale (OFS) of 47 lakh shares, which amounts to ₹150 crore.

The IPO price band has been fixed between ₹305 and ₹321 per share. Retail investors can apply for a minimum of 46 shares, aggregating to an investment of ₹14,766. For small Non-Institutional Investors (sNIIs), the minimum lot size is 14 lots (644 shares), which amounts to an investment of ₹2,06,724, while for big Non-Institutional Investors (bNIIs) the minimum application size is ₹10,04,088 for 68 lots (3,128 shares).

The book-running lead managers for this IPO are Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) and ICICI Securities Limited. The registrar for the issue is Kfin Technologies Limited.

Sanathan Textiles IPO: Key dates

Sanathan Textiles IPO’s subscription window opened today (December 19), and will close on Monday, December 23. The basis of allotting shares will be completed on Tuesday, December 24, and refunds to unsuccessful applicants will be initiated on Thursday, December 26. Successful applicants can expect their shares to be credited to their Demat accounts on the same day, December 26.

Shares of the company will be listed both on the NSE and BSE on Friday, December 27.

Sanathan Textiles IPO objectives

Sanathan Textiles Ltd. intends to use the funds raised from the IPO for three main purposes. First, it plans to repay or pre-pay certain loans taken by the company, either in full or partially. Second, part of the proceeds will be invested in its subsidiary, Sanathan Polycot Private Limited, to help repay or pre-pay some of the loans it has taken. Finally, the remaining funds will be used for general corporate purposes.

Sanathan Textiles Limited financials

Sanathan Textiles’ revenue from operations fell by around 11%, dropping from ₹3,329 crore in FY23 to ₹2,957 crore in FY24. Similarly, profit after tax (PAT) decreased by about 12% in FY24 to ₹134 crore against ₹153 crore in the preceding fiscal.

About Sanathan Textiles

Sanathan Textiles Limited, founded in 2005, is a manufacturer of polyester yarn and a supplier of cotton yarn. The company operates in three areas—polyester yarn, cotton yarn and yarns for technical textiles and industrial purposes. These technical textiles are used in industries such as automobiles, healthcare, construction, sports and protective clothing.

As of September 30, 2024, the company offered over 3,200 active yarn varieties and managed an inventory of more than 45,000 items across product categories. Its manufacturing capabilities include over 14,000 yarn varieties and more than 1.9 lakh Stock Keeping Units (SKUs).