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Sanathan Textiles to bring Rs 1,300 crore IPO, documents filed with SEBI

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Sanathan Textiles to bring Rs 1,300 crore IPO, documents filed with SEBI

According to the draft Red Herring Prospectus (DRHP), fresh shares worth Rs 500 crore will be issued under the IPO of Sanathan Textiles.

Sanathan Textiles IPO: Yarn manufacturer company Sanatan Textiles is going to bring its IPO. The company has submitted the draft paper to the market regulator SEBI for this. The company wants to raise Rs 1,300 crore through this IPO. The company may consider pre-IPO placement of equity shares up to Rs 100 crore.

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Fresh shares worth Rs 500 crore will be issued

According to the Draft Red Herring Prospectus (DRHP), fresh shares worth Rs 500 crore will be issued under this IPO. At the same time, 1.14 crore equity shares will be sold by the Dattani family under the Offer for Sale (OFS). According to market sources, the issue size will be in the range of Rs 1,200-1,300 crore. Up to Rs 325 crore of the proceeds from the fresh shares will be used to repay the loan. Along with this, the fund will also be used for general corporate purposes and working capital requirements.

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Know about the company

  • Mumbai based Sanatan Textiles was established in the year 2005.
  • The company’s business is divided into three distinct yarn business verticals, which include polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial use.
  • The company has increased its yarn production from 4,500 MTPA in the year 2006 to 221,050 metric tonnes per annum (MTPA) in 2021.
  • The company manufactures more than 12,900 types of yarn products with over one lakh SKUs (Stock Keeping Units) as of September 2021.
  • Sanatan Textiles has achieved a profit of Rs 185.63 crore and a revenue of Rs 1,918.36 crore in the financial year 2021. It has earned profit of Rs 170.78 crore and revenue of Rs 1,438.88 crore in the six months ended September 2021.
  • Edelweiss Financial Services and JM Financial are the Book Running Lead Managers of the issue.
  • The shares of the company are proposed to be listed on NSE and BSE.

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