Sanathan Textiles' initial share sale saw 45 percent subscription on the first day of bidding, with investors buying 56.77 lakh shares against the offer size of 1.26 crore shares on December 19.
Retail investors bid 0.76 times the allotted quota, while non-institutional investors subscribed for 32 percent shares of their reserved portion. Qualified institutional buyers applied for 644 shares on Thursday, out of 36.06 lakh shares reserved for them.
The polyester and cotton yarn products manufacturer approached the primary market to raise Rs 550 crore through its IPO at the upper end of price band of Rs 305-321 per share. The IPO is a combination of fresh issue of Rs 400 crore, and an offer-for-sale of Rs 150 crore worth shares by promoters.
Sanathan Textiles already mopped up Rs 165 crore through anchor book on December 18. Several institutional investors including Societe Generale, Pinebridge Global Funds, Whiteoak Capital, SBI Mutual Fund, Nippon Life India, HDFC Mutual Fund, Kotak Mahindra AMC, and LIC Mutual Fund became shareholders in the company by participating in the anchor book.
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The fresh issue proceeds will be utilised for repaying debt, and general corporate purposes.
DAM Capital Advisors, and ICICI Securities are acting as the book running lead managers to the issue, while its shares will make debut on the BSE and NSE effective December 27.
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