Sanathan Textiles mobilises Rs 165 crore via anchor book ahead of Rs 550-crore IPO

Sanathan Textiles IPO

Polyester and cotton yarn products manufacturer Sanathan Textiles raised Rs 165 crore from 14 institutional investors via anchor book on December 18, a day before its issue opens for subscription on December 19 till December 23.

The Mumbai-based company with textile facility in Silvassa targets to mop up Rs 550 crore through its initial share sale. The price band for the offer has been fixed at Rs 305-321 per share.

"...has finalised allocation of 51.4 lakh equity shares to anchor investors at Rs 321 per equity share," Sanathan Textiles said in its filing to exchanges.

Pinebridge Global Funds, SBI General Insurance, Societe Generale, Edelweiss Trusteeship, Whiteoak Capital, and Ashoka India Equity Investment Trust amongst the leading institutional investors participated in the anchor book.

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Domestic fund houses like SBI Mutual Fund, Nippon Life India, HDFC Mutual Fund, Kotak Mahindra AMC, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, and LIC Mutual Fund also invested in the company."Out of the total allocation of 51.4 lakh shares to the anchor investors, 38.16 lakh shares were allocated to 9 domestic mutual funds which have applied through their 14 schemes," the company said.

The IPO by Sanathan Textiles is a mix of fresh issuance of equity shares worth Rs 400 crore, and an offer-for-sale of Rs 150 crore worth shares by promoters.

The Dattani family-owned company will utilise fresh issue proceeds for repaying debt, and general corporate purposes.

Also read: Mamata Machinery raises Rs 53.56 crore via anchor book, Rs 179-crore IPO to open on December 19

Its Silvassa facility had a total installed capacity of 2,23,750 MTPA across the three yarn verticals, while polyester yarn products continue to be its largest item of production, contributing 77 percent to revenue.

The merchant bankers handling the public issue are DAM Capital Advisors, and ICICI Securities.