Sanathan Textiles IPO: 45% Subscribed on First Day – All You Need to Know
Sanathan Textiles Ltd’s initial public offering (IPO) has generated a mixed response on its first day of bidding, with only 45% of the offer subscribed. The IPO, which is valued at ₹550 crore, opened on December 19 and will close on December 23. The company is set to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 27.
Sanathan Textiles IPO Overview
The Sanathan Textiles IPO is a book-building issue, with a fresh issue of 1.25 crore shares worth ₹400 crore and an offer-for-sale (OFS) of 47 lakh shares valued at ₹150 crore. The price band for the IPO is ₹305 to ₹321 per share.
Investor Categories and Subscription Numbers
On day one, the IPO saw lukewarm interest across different investor categories:
- Retail Investors: 76% of the reserved portion was subscribed. Out of the 63.11 lakh shares available, bids for 48.12 lakh shares were received.
- Non-Institutional Investors (NIIs): 32% of their allocated portion was subscribed, with bids for 8.53 lakh shares against 27.04 lakh shares.
- Qualified Institutional Buyers (QIBs): Only 644 shares were bid for, out of the 36.06 lakh shares reserved for them.
Sanathan Textiles IPO Details
- Issue Size: ₹550 crore
- Fresh Issue: ₹400 crore (1.25 crore shares)
- OFS: ₹150 crore (47 lakh shares)
- Price Band: ₹305 to ₹321 per share
- Retail Minimum Investment: ₹14,766 for 46 shares
- Date of Listing: December 27, 2024
Key Dates for the IPO
- Subscription Period: December 19 to December 23
- Allotment Date: December 24
- Refunds Date: December 26
- Credit to Demat Accounts: December 26
- Listing on BSE and NSE: December 27
IPO Objective and Use of Funds
Sanathan Textiles plans to utilize the funds raised from this IPO for three main purposes:
- Repayment of Loans: The company intends to repay or pre-pay certain loans.
- Investment in Subsidiary: Part of the funds will be directed towards repaying loans of its subsidiary, Sanathan Polycot Private Limited.
- General Corporate Purposes: Remaining funds will be used for the company’s overall corporate activities.
Financials of Sanathan Textiles
Sanathan Textiles has faced a slight decline in revenue, with a drop of 11% from ₹3,329 crore in FY23 to ₹2,957 crore in FY24. The company’s profit after tax (PAT) also saw a decrease of 12%, from ₹153 crore to ₹134 crore in FY24.
About Sanathan Textiles
Founded in 2005, Sanathan Textiles is a leading manufacturer of polyester and cotton yarn. The company specializes in technical textiles for industries such as automobiles, healthcare, construction, and sports. With a wide array of over 3,200 active yarn varieties and more than 45,000 items across product categories, Sanathan Textiles is poised to be a significant player in the textile industry.
Stay updated with the latest developments on the Sanathan Textiles IPO, and check out the latest subscription status, prices, and more on Daily Dose 360.
Disclaimer: Daily Dose 360 provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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