Mumbai based Textile Yarn Company Sanathan Textiles files DRHP with SEBI for the proposed IPO; Key Details here

Sanathan Textiles is into Industrial Textile Yarn and is looking raise funds through Fresh Issue and Offer For Sale

Sanathan TextilesIPO: Fresh Issue of Equity shares aggregating up to Rs.500 crores. Offer for Sale of Equity shares aggregating up to Rs.300 crores IPO

Sanathan Textiles IPO: Sanathan Textiles Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of Sanathan Textiles are Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Dinesh Vrajdas Dattani, Anilkumar Vrajdas Dattani, D&G Family Trust, P&B Family Trust, A&J Family Trust and Nimbus Trust and holds 97.54% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 500 crores and an Offer for Sale of Equity Shares aggregating Up to Rs 300 crores.
• DAM Capital, ICICI Securities have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 500 Crs andby OFS consists of Rs300 crores is from Promoter and Promoters Group Selling Shareholders...

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Objects of the issue:
1) Rs160 cr debt repayment/pre-payment, 2) Rs215 cr investment towards debt repayment / pre-payment of its subsidiary company Sanathan Polycot and, 3) General corporate Purpose.

About Company:
Established in 2005, Sanathan Textiles Limited is engaged in the business of manufacturing textile yarn, which is divided into three separate business verticals, consisting of: Polyester yarn products; Cotton yarn products; and Yarns for technical textiles and industrial uses finding application in multiple end-use segments including automotive, healthcare, construction, sports and outdoor, and protective clothing. Currently, all the three yarn verticals are housed under a single corporate entity. It had a market share of 1.7% in the overall Indian textile yarn industry in FY24.

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About Industry:
The global textile industry has grown consistently between CY2018 to CY2023, barring CY2020, which saw a decline due to Covid-19. Going ahead, the industry is expected to grow at a CAGR of 2.5 - 3.5% between CY2023 to CY2027 to reach ~USD 1,780-1,830 billion in CY2027. Indian textile and apparel industry which is estimated to be Rs. 9,450 – 9,550 billion as of Fiscal 2024, is projected to grow at a CAGR of 6.0-7.0% from Fiscal 2024 till Fiscal 2028 and reach a value of Rs. 12,500-12,700 billion.

Source: SEBI, BSE, NSE, DRHP, Sanathan Textiles, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.