Sanathan Textiles IPO: Aiming for ₹550 Crore with Promising Prospects
IPO Opens December 19, 2024 | Price Band: ₹305-₹321
BILKULONLINE
Ahmedabad, Dec 17: Sanathan Textiles Ltd., a key player in the textile industry, is set to launch its Initial Public Offering (IPO) to raise ₹550 crores. The issue will open on December 19, 2024, and close on December 23, 2024, with shares listed on the BSE and NSE on December 27, 2024.
Sanathan Textiles also produces cotton yarn products and a range of other yarns, including dope-dyed, superfine, micro, functional, industrial, and cationic dyeable yarns.
Sanathan Textiles is committed to sustainability and has incorporated renewable energy into its operations. They have installed rooftop solar projects at their Silvassa facility to increase the share of renewable energy in their consumption.
Key Leadership
CEO: Paresh Vrajlal Dattani (Chairman & Managing Director)
CFO: Sanjay Anirudh Shah
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.
Objectives of the IPO
The funds raised through the IPO will be used for:
Repayment or pre-payment of borrowings by Sanathan Textiles and its subsidiary, Sanathan Polycot Private Limited.
Investments to support business expansion and improve financial health.
General corporate purposes to strengthen the company’s operational base.
IPO Details at a Glance
Issue Size: ₹550 crores
Fresh Issue: ₹400 crores
Offer for Sale (OFS): ₹150 crores
Price Band: ₹305 to ₹321 per share
Market Lot: 46 shares (₹14,766 minimum application)
Investor Quotas: Retail – 35%, QIB – 50%, HNI – 15%
Financial Overview
Sanathan Textiles posted a revenue of ₹2,979.8 crores in FY24, down from ₹3,345.02 crores in FY23. Despite a drop in net profit from ₹152.74 crores in FY23 to ₹133.85 crores in FY24, the company’s three-year average ROE of 23.1% and ROCE of 21% highlight its operational efficiency.
DAM Capital Advisors Ltd. is a prominent investment banking firm serving as one of the lead managers for the Sanathan Textiles IPO.
Timeline of Sanathan Textiles IPO
Opening Date: December 19, 2024
Closing Date: December 23, 2024
Allotment Date: December 24, 2024
Listing Date: December 27, 2024
Investors looking for long-term opportunities in the textile sector may find this IPO an attractive proposition, with a focus on debt reduction and sustained growth.
Disclaimer: Readers are advised to carefully study the Sanathan Textiles IPO prospectus and consult their financial advisors before making any investment decisions.
Visit BILKULONLINE You Tube Channel – Kindly Subscribe & Like.
