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Sanathan Textiles IPO is a book-built issue of Rs 550.00 crores. The issue is a combination of a fresh issue of 1.25 crore shares aggregating to Rs 400.00 crores and an offer for sale of 0.47 crore shares aggregating to Rs 150.00 crores.
The IPO opens for subscription on December 19, 2024, and closes on December 23, 2024. The price band for the IPO is set at ₹305 to ₹321 per share. The minimum lot size for an application is 46 shares.
Company Summary
Incorporated in 2005, Sanathan Textiles Limited is a polyester yarn manufacturer and a global supplier of Cotton Yarn. The company’s business is divided into three separate yarn business verticals, consisting of: (a) Polyester yarn products; (b) Cotton yarn products; and (c) Yarns for technical textiles and industrial uses. These technical textiles are used in various sectors such as automotive, healthcare, construction, sports and outdoor activities, and protective clothing.
As of September 30, 2024, the company had more than 3,200 active varieties of yarn products (i.e., yarn products manufactured by us from April 1, 2021, to September 30, 2024) and more than 45,000 stock-keeping units (SKUs). It also can 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.
As of June 30, 2024, Fiscal 2024, and Fiscal 2023, Sanathan Textiles Limited exported its products to 14, 27 and 29 countries.
As of June 30, 2024, the company had more than 925 distributors in 7 countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
The company’s manufacturing unit is located in Silvassa. The company’s clients comprise several multinational, regional and local companies such as Welspun India Limited, Valson Industries Limited, G.M. Fabrics Private Limited, Premco Global Limited, Creative Garments Textile Mills Private Limited, Banswara Syntex Limited, AYM Syntex Limited, Techno Sportswear Private Limited, Haren Textiles Private Limited, Khosla Profil Private Limited, Tulip Elastics Private Limited and more.
Company Strengths
- The company is one of the few companies (amongst our peer group) in India with a presence across the polyester, cotton, and technical textile sectors.
- Fully integrated Yarn manufacturing plant set up at a strategic location with equipment supplied by domestic and globally renowned players.
- Deep knowledge and understanding of optimal product assortment and strong supplier network enabling procurement at predictable and competitive pricing, leading to an overall efficient cycle.
- Harnessing digitization and technology in production processes with a focus on energy efficiency and sustainable practices.
- Experienced management team with a proven track record
Company Financials
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 2,529.53 | 2,203.68 | 1,906.67 | 1,796.47 |
| Revenue | 787.76 | 2,979.8 | 3,345.02 | 3,201.46 |
| Profit After Tax | 50.07 | 133.85 | 152.74 | 355.44 |
| Net Worth | 1,324.06 | 1,273.98 | 1,140.13 | 987.39 |
| Total Borrowing | 644.93 | 379.88 | 281 | 378.19 |
Amount in ₹ Crore | ||||
Objectives of the company
The company proposes to utilize the Net Proceeds towards the following objects
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company
- Investment in our subsidiary viz. Sanathan Polycot Private Limited, for repayment and/ or pre-payment, in full or part, of certain borrowings availed by our subsidiary viz. Sanathan Polycot Private Limited.
- General corporate purposes.
Promoters of the company
Nimbus Trust, D&G Family Trust, A&J Family Trust, P&B Family Trust, Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani and Dinesh Vrajdas Dattani are the promoters of the company.
IPO details
| IPO Date | December 19, 2024 to December 23, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹305 to ₹321 per share |
| Lot Size | 46 Shares |
| Total Issue Size | 1,71,33,958 shares (aggregating up to ₹550.00 Cr) |
| Fresh Issue | 1,24,61,060 shares (aggregating up to ₹ 400.00 Cr) |
| Offer for Sale | 46,72,898 shares of ₹10 (aggregating up to ₹150.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 46 | ₹14,766 |
| Retail (Max) | 13 | 598 | ₹1,91,958 |
| S-HNI (Min) | 14 | 644 | ₹2,06,724 |
| S-HNI (Max) | 67 | 3082 | ₹9,89,322 |
| B-HNI (Min) | 68 | 3128 | ₹10,04,088 |
Allotment Schedule
| Basis of Allotment | Tuesday, December 24, 2024 |
| Initiation of Refunds | Thursday, December 26, 2024 |
| The credit of Shares to Demat | Thursday, December 26, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 23, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
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