Sanathan Textiles IPO is a book-built issue with a total size of ₹550.00 crores, consisting of a fresh issue of 1.25 crore shares aggregating to ₹400.00 crores and an offer for sale (OFS) of 0.47 crore shares aggregating to ₹150.00 crores. The IPO opens for subscription on December 19, 2024, and closes on December 23, 2024. The allotment of shares is expected to be finalized on December 24, 2024, with the tentative listing date set as December 27, 2024, on the BSE and NSE.
The IPO price band is set at ₹305 to ₹321 per share, with a minimum application lot size of 46 shares. Retail investors need to invest a minimum of ₹14,766, while small non-institutional investors (sNII) require 14 lots (644 shares) amounting to ₹2,06,724. Big non-institutional investors (bNII) need to invest in 68 lots (3,128 shares), amounting to ₹10,04,088. The allocation quotas are divided as 35% for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for Non-Institutional Investors (HNI).
Financially, the company reported a revenue of ₹2,979.8 crores in 2024, which is lower than the ₹3,345.02 crores reported in 2023. Similarly, the profit declined from ₹152.74 crores in 2023 to ₹133.85 crores in 2024. Despite the dip in financial performance, the IPO is viewed as having long-term investment potential due to the company’s fundamentals and market positioning. Investors are advised to consider the financial trends and overall market conditions before subscribing.
Overview of Contents
Sanathan Textiles IPO Subscription Status
The IPO witnessed an exceptional response, with an overall oversubscription of 35.12 times. Qualified Institutional Buyers (QIBs) led the demand, bidding 75.62 times their allocation of 36,06,556 shares, driven by significant participation from FIIs and Domestic Financial Institutions. Non-Institutional Investors (NIIs) subscribed 42.21 times their allotment of 27,04,918 shares, with high interest from individuals and corporates. Retail Individual Investors (RIIs) subscribed 8.93 times their allocation of 63,11,476 shares, driven largely by cut-off bids. With 1,26,22,950 shares offered and bids for 44,32,74,538 shares, the IPO reflected strong market confidence across all categories.
About Sanathan Textiles IPO
Sanathan Textiles Limited, incorporated in 2005, is a prominent polyester yarn manufacturer and a global supplier of cotton yarn. The company operates across three verticals: polyester yarn, cotton yarn, and yarns for technical textiles used in sectors like automotive, healthcare, and protective clothing. With a manufacturing unit in Silvassa, Sanathan Textiles offers over 3,200 active yarn varieties, capable of producing more than 14,000 product variations and 190,000 stock-keeping units (SKUs). As of June 30, 2024, the company exported to 14 countries and maintained a strong network of 925 distributors across seven nations, including India, Singapore, Germany, and Canada.
The company has a diverse clientele, including Welspun India Limited and G.M. Fabrics, and focuses on product innovation, sustainable practices, and process efficiency. In Fiscal 2024, it earned ₹29,575.04 million in revenue, with 100% from operations. Its integrated manufacturing capabilities, strong supplier network, and experienced management team underpin its competitive edge. Sanathan Textiles is well-positioned for growth, driven by strategies to expand capacity, enhance value addition, and adopt energy-efficient technologies, ensuring its leadership in the global textile market.
Sanathan Textiles IPO Details
| Parameter | Details |
|---|---|
| IPO Date | December 19, 2024 to December 23, 2024 |
| Listing Date | December 24, 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 |
| Share Holding Pre Issue | 7,19,43,000 shares |
| Share Holding Post Issue | 8,44,04,060 shares |
Sanathan Textiles IPO Dates
| Parameter | Details |
|---|---|
| IPO Open Date | Thursday, December 19, 2024 |
| IPO Close Date | Monday, December 23, 2024 |
| Basis of Allotment Finalization | Tuesday, December 24, 2024 |
| Initiation of Refunds | Thursday, December 26, 2024 |
| Credit of Shares to Demat Accounts | Thursday, December 26, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 23, 2024 |
Sanathan Textiles IPO Lot Size
Sanathan Textiles IPO allows investors to apply in lots, starting with a minimum of 46 shares. Retail investors can apply for up to 13 lots, while Small High Net-worth Individuals (S-HNI) and Big High Net-worth Individuals (B-HNI) can apply for higher multiples. The table below provides the details of the lot sizes and corresponding investment amounts for retail and HNI categories.
| Application Category | 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 | 3,082 | ₹9,89,322 |
| B-HNI (Min) | 68 | 3,128 | ₹10,04,088 |
Sanathan Textiles 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 |
Sanathan Textiles IPO Promoter Holding
The promoters of Sanathan Textiles Limited include 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. Before the IPO, the promoters collectively hold 100% of the company’s shareholding. Post-issue, the shareholding of the promoters will be diluted as new shares are issued and existing shares are offered for sale, making space for public and institutional investors. This strategic move aims to enhance the company’s market presence and funding capabilities while maintaining substantial promoter control.
Sanathan Textiles has demonstrated consistent financial performance over the years, with fluctuations in revenue and profitability. The table below highlights the company’s key financial metrics, including revenue, expenses, profit after tax, and assets, for the past three fiscal years and the quarter ending June 2024.
Sanathan Textiles IPO Company Financial Report
| Period Ended | Revenue (₹ Cr) | Expense (₹ Cr) | Profit After Tax (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|---|
| 2022 | ₹3,201.46 | ₹2,722.34 | ₹355.44 | ₹1,796.47 |
| 2023 | ₹3,345.02 | ₹3,135.59 | ₹152.74 | ₹1,906.67 |
| 2024 | ₹2,979.80 | ₹2,798.40 | ₹133.85 | ₹2,203.68 |
| June 2024 | ₹787.76 | ₹720.99 | ₹50.07 | ₹2,529.53 |
Sanathan Textiles IPO Valuation – FY2024
The following table summarizes the key valuation metrics for Sanathan Textiles based on its financial performance for FY2024. These metrics include Return on Equity (ROE), Return on Capital Employed (ROCE), Earnings Per Share (EPS), Price-to-Earnings (P/E) ratio, Return on Net Worth (RoNW), Net Asset Value (NAV), and other important financial indicators.
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 11.09% |
| Return on Capital Employed (ROCE) | 11.80% |
| EBITDA Margin | 7.66% |
| PAT Margin | -% |
| Debt to Equity Ratio | 0.30 |
| Earnings Per Share (EPS) | ₹18.60 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 10.42% |
| Net Asset Value (NAV) | ₹177.22 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| K.P.R. Mill Ltd | 23.56 | 40.18 | 18.48 | 127.50 | 6,059.68 Cr. |
| Vardhman Textiles Ltd. | 22.20 | 23.34 | 7.00 | 314.69 | 9,504.68 Cr. |
| Indo Count Industries Ltd | 17.06 | 22.49 | 16.35 | 105.48 | 3,557.07 Cr. |
| Filatex India Ltd | 2.49 | 25.00 | 9.19 | 27.13 | 4,285.90 Cr. |
| Garware Technical Fibres Ltd. | 102.16 | 35.38 | 16.87 | 621.49 | 1,325.61 Cr. |
Objects of the Issue
| Objects of the Issue |
|---|
| Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company. |
| Investment in the Company's subsidiary, Sanathan Polycot Private Limited, for repayment and/or pre-payment, in full or part, of certain borrowings. |
| General corporate purposes. |
Sanathan Textiles IPO Registrar
KFin Technologies Limited
Phone: +91 40 6716 2222
E-mail: [email protected]
Website: https://ris.kfintech.com/
Company Address
Sanathan Textiles Limited
D-15, Trade World Building Kamala Mills Compound,
Senapati Bapat Marg Lower Parel, Mumbai – 400013
Phone: +91 22 6634 3312/3/4/5/6
Email: [email protected]
Website: www.sanathan.com
FAQs – Sanathan Textiles IPO
What is the IPO issue size of Sanathan Textiles?
The total issue size is ₹550.00 crores, consisting of a fresh issue of ₹400.00 crores and an offer for sale of ₹150.00 crores.
What is the price band for the Sanathan Textiles IPO?
The price band for the IPO is ₹305 to ₹321 per share.
When does the Sanathan Textiles IPO open and close?
The IPO opens on December 19, 2024, and closes on December 23, 2024.
What is the minimum lot size for the IPO?
The minimum lot size is 46 shares, with the minimum investment amount of ₹14,766 for retail investors.
When will the shares be listed?
The shares are expected to be listed on BSE and NSE on December 27, 2024.
What is the use of the IPO proceeds?
The proceeds will be used for repayment of borrowings, investment in the subsidiary Sanathan Polycot, and general corporate purposes.
Who are the promoters of Sanathan Textiles?
The promoters include 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.