Upcoming IPO: Sebi clears deck for Sanathan Textiles Rs 800-cr public offer

Sanathan Textiles, a Mumbai-based company with a strong presence across polyester, cotton, and technical textile sectors, is set to hit the public market with an Rs 800 crore IPO. The company received final approval from the Securities and Exchange Board of India (Sebi) after re-filing its IPO documents on August 20, 2024.

 

The IPO includes a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale by promoters, totaling Rs 300 crore. Key stakeholders like Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani, and Dinesh Vrajdas Dattani will each sell a portion of their holdings.

 

 

Shares of Sanathan Textiles are proposed to be listed on the BSE, and National Stock Exchange (NSE). KFin Technologies is the registrar for the issue, with Dam Capital Advisors and ICICI Securities acting as lead managers.

 

Sanathan Textiles, in its Draft Red Herring Prospectus, outlines that the company intends to utilise the proceeds from the fresh issue for the repayment and/or pre-payment, in full or part, of certain borrowings availed by the company. The company will also use the proceeds for investment in its subsidiary, Sanathan Polycot, for repayment and/or pre-payment, in full or part, of certain borrowings availed by the subsidiary; and for general corporate purposes.

 

The company will not receive any proceeds from the Offer for Sale. “Each selling shareholder will be entitled to proceeds from the Offer for Sale to the extent of their respective portion of the offered shares, after deducting their respective proportion of offer-related expenses and relevant taxes thereon, in accordance with the Offer Agreement,” said Sanathan Textiles in its DRHP.

 

Sanathan Textiles specialises in high-value yarn products, including dope-dyed, superfine, technical, and specialty yarns. In FY24, 51.9 percent of its sales came from these value-added products. The company also operates an eco-friendly line, Sanathan Rivero, which recycles plastic waste into yarn for fabrics. With a large product portfolio, Sanathan Textiles has developed over 2,800 yarn varieties and managed more than 30,000 stock-keeping units (SKUs) as of June 30, 2024.