Sanathan Textiles, a yarn manufacturer, recently launched its ₹550-crore initial public offering (IPO) with a price band of ₹305-321. The IPO, which received a modest response from investors on the first day, was subscribed 0.45 times overall. The issue is open for bidding until December 23, with a minimum bid of 46 shares.
The IPO comprises a combination of a fresh issue worth ₹400 crore and an offer-for-sale of shares for ₹150 crore by the promoters and promoter group entities. Up to 50 percent of the issue has been reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
While the QIB portion is yet to see bidding, the quota for non-institutional investors and retail investors was subscribed 0.32 times and 0.76 times, respectively. As part of the IPO, Sanathan Textiles raised ₹165 crore from anchor investors, allotting 51.4 lakh shares to 20 funds at ₹321 apiece.
The company plans to utilize the proceeds from the fresh issue for debt repayment, investment in its subsidiary, and general corporate purposes. Sanathan Textiles manufactures textile yarn for various end-use segments, including automotive, healthcare, construction, sports, and protective clothing.
Dam Capital Advisors and ICICI Securities are serving as the book-running lead managers for the IPO, with the equity shares proposed to be listed on the BSE and NSE. Overall, the IPO presents an opportunity for investors to participate in the growth of Sanathan Textiles and its diversified yarn manufacturing business.
