Sanathan Textiles makes a strong debut, shares list at 31.5% premium; check how much gain investors made

Cotton yarn producer Sanathan Textiles made a strong debut on stock exchanges, listing its shares at a premium of 31.56% on Friday.

The company's shares started trading on the NSE at ₹422.3 per share, up from the issue price of ₹321 per share.

More than 27.35 lakh shares were traded on the exchange, with a turnover of ₹ 115.49 crore and market capitalisation of 3,565 crore.

On BSE, the stock debuted at ₹419.1 per share, reflecting a gain of 30.56% compared to the issue price.

At the listing price of ₹422.3 per share, the value of a lot of shares bagged by investors in the IPO share allotment was ₹19,425.8 (₹422.3 x 46). IPO investors could have made a profit of ₹4659.8 as the minimum investment in a lot was ₹14,766 (₹321 x 46).

Sanathan Textiles raises ₹550 crore through IPO

The cotton yarn producer raised ₹ 550 crore through its initial public offering, which comprised a fresh issue of 1.25 crore shares worth ₹400 crore and an offer-for-sale (OFS) of 47 lakh shares, worth up to ₹150 crore.

The book-built issue was open for subscription from December 19 to 23, 2024. The company set the price band at ₹305-₹321 per share, and the minimum lot size was 46 shares.

As per the Sanathan Textiles IPO subscription status, the issue was booked more than 35 times the number of shares on offer for subscription. Applications for 44.32 crore shares were received on BSE and NSE, compared to a net issue size of 1.26 crore shares for public investors.

Qualified institutional buyers (QIBs) placed bids for 27.27 crore shares against 36.06 lakh shares on offer, and the QIB portion was booked 75.62 times.

The non-institutional investors' (NIIs) portion was booked 42.21 times. NIIs applied for 11.4 crore shares, compared to 27.04 lakh shares on offer for the category.

The retail investors' segment was booked 8.93 times. Applications for more than 5.58 crore shares were received from retail investors against 63.11 lakh shares on offer.

The company raised ₹165 crore from anchor investors in the pre-bid round. The company allotted 51,40,186 shares at a price of ₹321 per share – the upper limit of the price band – to 20 fund schemes.

The company finalised the share allotment status on December 24.

About Sanathan Textiles and use of IPO proceeds

• Sanathan Textiles Ltd is a producer of polyester yarn. It also supplies cotton yarn globally.
• The company operates in three business segments: polyester yarn, cotton yarn, and yarns used in technical textiles and industrial applications.
• The company has a manufacturing plant in Silvassa. Its customers include Welspun India, GM Fabrics, Valson Industries, and Premco Global.
• According to Sanathan Textiles RHP, the IPO proceeds will be utilised to repay or partially offset the company’s existing debt liabilities.
• The company has also proposed investing in its subsidiary, Sanathan Polycot Private Ltd., to assist in repaying or partially settling borrowings.