Sanathan Textiles Limited’s Initial Public Offering to open on Thursday,
December 19, 2024, price band set at ₹305/- to ₹321/- per Equity Share
·
Price Band of ₹305/– ₹321/- per Equity
Share bearing face value of ₹10/- each (“Equity Shares”)
·
Bid/Offer Opening Date – Thursday, December 19, 2024
and Bid/Offer Closing Date – Monday, December 23, 2024.
·
Minimum Bid Lot is 46 Equity Shares
and in multiples of 46 Equity Shares thereafter.
·
The Floor Price is 30.50 times the
face value of the Equity Share and the Cap Price is 32.10 times the face value
of the Equity Share.
RISKS
TO INVESTORS
Mumbai,
December 16, 2024: Sanathan Textiles Limited is engaged
in the business of manufacturing textile yarn, from three business verticals,
consisting of: Polyester yarn products; Cotton yarn products; and Yarns for
technical textiles and industrial uses, has fixed
the price band of ₹305/- to ₹321/- per Equity Share of face value ₹10/- each for its maiden initial public
offer.
The Initial
Public Offering (“IPO” or “Offer”) of the Company will open for
subscription on Thursday, December
19, 2024, and close on Monday, December 23, 2024. Investors can bid for a minimum of 46
Equity Shares and in multiples of 46 Equity Shares thereafter.
The IPO is a mix of fresh issue of up to Rs 4000 million and an offer
of sale of up to Rs 1500 million.
The proceeds from its
fresh issuance will be utilized to the extent of Rs 1600 million for repayment
or pre-payment, in full or in part, of certain of its outstanding borrowings
availed by the Company; Rs 1400 million for investment in its subsidiary viz.
Sanathan Polycot Private Limited, for repayment and/ or pre-payment, in full or
part, of certain borrowings availed by its subsidiary viz. Sanathan Polycot
Private Limited; and general corporate purpose.
Sanathan Textiles is one
of the few companies (amongst our peer group) in India with presence across the
polyester, cotton, and technical textile (which
find application in multiple end-use
segments including automotive, healthcare, construction, sports and outdoor,
and protective clothing) sectors and based on our
operating income, we had a
market share of 1.7% in the overall Indian textile yarn industry as of Fiscal
2024. (Source: CRISIL Report). Currently, all the three yarn verticals are housed
under a single corporate entity. This has facilitated our diversification into
new segments which in turn has helped us in serving a large number of customers
across various sectors. As on September
30, 2024, we have more than 3,200
active varieties of yarn
products (i.e. yarn products
manufactured by us during the period April 1, 2021 to September 30, 2024)
and more than 45,000 stock keeping units (SKUs), and 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 also has a
strong focus on value-added products, including dope-dyed, superfine/micro,
functional, industrial, technical yarns, cationic dyeable, and specialty yarns.
These products are created through extensive in-house research and are
customized to meet specific customer requirements, offering unique
characteristics that differentiate them from standard products. Sanathan Textiles'
manufacturing facility in Silvassa has seen significant expansion, and as of
June 30, 2024, it boasts a total installed capacity of 223,750 MTPA across the
three yarn verticals.
The Offer is being made through the book-building
process, wherein not more than 50% of the offer shall be available for
allocation on a proportionate basis to qualified institutional buyers, not less
than 15% of the offer shall be available for allocation to non-institutional
investors, and not less than 35% of the offer shall be available for allocation
to retail individual investors.
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