Sanathan Textiles sets price band of Rs 305-321 a share for its IPO

Sanathan Textiles Ltd has announced a price band of Rs 305-321 per share for its upcoming initial public offering (IPO), which will open on December 19 and close on December 23. Anchor investor bidding will commence on December 18. The basis of allotment will be finalized on December 24, with refunds initiated and equity shares credited to demat accounts by December 26. The stock is scheduled to list on the exchanges on December 27.

The IPO comprises a fresh issue of Rs 400 crore and an offer for sale (OFS) of up to Rs 150 crore by existing shareholders and promoters. On the upper price band of the issue, the total mcap of the firm stood at Rs 2710 crore.

The net proceeds from the fresh issue of Rs 400 crore will be used to repay debt for both Sanathan Textiles and its subsidiary, Sanathan Polycot. As of September 2024, the company’s total debt stood at Rs 2,721.59 crore, while Sanathan Polycot’s debt amounted to Rs 950 crore.

Sanathan Textiles is one of the few companies in India with a presence across polyester, cotton, and technical textile segments, catering to multiple end-use industries such as automotive, healthcare, construction, sports and outdoor, and protective clothing. Based on its operating income, the company held a 1.7% market share in the Indian textile yarn industry.