Mumbai: Sanathan Textiles Limited is coming out with its maiden Initial Public Offering (IPO) priced at Rs 305 to Rs 321 per Equity Share – aggregating to Rs 550 crores – which will open on December 19 and close on December 23, 2024.
The IPO is a mix of Fresh Issue up to Rs 4,000 million and an Offer of Sale up to Rs 1,500 million.
Paresh Dattani, Chairman and Managing Director, Sanathan Textiles Limited, said here recently that the Company 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.
Dattani said that the proceeds from its fresh issuance will be utilized as: Rs 1600 million for repayment or pre-payment of part 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-paymentof certain borrowings availed by its subsidiary viz. Sanathan Polycot Private Limited; and general corporate purposes.
He said Sanathan Textiles is one of the few companies in India present across the polyester, cotton and technical textile sector with its application in multiple end-use segments including automotive, healthcare, construction, sports and outdoor, and protective clothing.
Noting that as of September 30, 2024, the Company has over 3,200 active varieties of yarn products and more than 45,000 stock keeping units (SKUs), he said it also had 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.
To a question, he said “Recycled yarns production is at a ‘nascent’ stage and we want to be there as the value grows.”
DAM Capital Advisors Limited, and ICICI Securities Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
