Sanathan Textiles IPO

About Sanathan Textiles IPO

Sanathan Textiles Limited is an IPO of ₹550 crores. The issue consists of a fresh issue of ₹550 crores and an offer for sale of ₹150 crore shares. The IPO opens for subscription on December 19, 2024 and closes on December 23, 2024. The shares will be allotted on Dec 24, 2024 and the Initiation of refunds will take place on Dec 26, 2024.

Objective of the IPO

1. Repayment and/ or pre-payment, in full or part, of certain borrowings availed by our Company;
2. Investment in our subsidiary viz. Sanathan Polycot Private Limited, for repayment and/ or pre-payment, in full or part, of certain borrowings availed by our subsidiary viz. Sanathan Polycot Private Limited; and
3. General corporate purposes.

Anchor Investor Information

IPO Registrar and Book Running Lead Managers

DAM Capital Advisors Limited
ICICI Securities Limited

Registrar for the IPO is Link KFin Technologies Limited

Business Model

Business Model (Revenue Sources) Polyester Yarn: Primary revenue driver. Cotton Yarn: Focused on both domestic and export markets. Technical Textiles: Emerging as a significant vertical.

Growth Trajectory

Revenue decreased from ₹33,292.13 million in FY23 to ₹29,575.04 million in FY24 due to lower average selling prices. PAT declined from ₹1,527.41 million in FY23 to ₹1,338.48 million in FY24.

Market Position

Sanathan Textiles holds a key position in the Indian textile sector, leveraging strong manufacturing capabilities and diversified product offerings. It remains competitive due to its robust supply chain and consistent capacity utilisation exceeding 100%.

Industry Outlook

The Indian textiles and apparel industry is projected to grow at a CAGR of 6.0-7.0%, reaching ₹12,500–₹12,700 billion by FY28. Exports are expected to grow by 4.5-5.5% annually, while domestic sales will expand at 7.0-8.0% CAGR.

Company Information

Sanathan Textiles Limited specialises in manufacturing polyester and cotton yarn, along with industrial and technical textiles. With over a decade of experience, it operates from its facility in Silvassa and has an established client base across multiple sectors.

Sanathan Textiles IPO Risk Factors

• Price Volatility: Dependency on raw material prices impacts profitability.
  
• Geographical Concentration: Over 60% revenue from Gujarat, Maharashtra, and Punjab.
  
• Regulatory Challenges: Compliance issues may pose operational risks.
  

How To Check Allotment Status of Sanathan Textiles IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar — Link In Time India Pvt Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Sanathan Textiles Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the LinkIntime website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Sanathan Textiles Ltd from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status