Sanathan Textiles refiles draft papers to raise Rs 800 crore via IPO

Sanathan Textiles IPO

Yarn products manufacturer Sanathan Textiles has refiled preliminary papers with the capital markets regulator SEBI to raise Rs 800 crore via initial public offering.

The IPO is a mix of fresh issuance of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of shares worth Rs 300 crore by promoters.

Earlier, the company had filed draft papers with the SEBI in January 2022 for IPO which was comprised of a fresh issue of Rs 500 crore and an OFS of 1.14 crore equity shares by promoters. It was planning to raise around Rs 1,300 crore via IPO which has received approval from the regulator in May 2022 but could not proceed further.

As per the latest prospectus, the Mumbai-based company may consider raising funds up to Rs 100 crore in a pre-IPO placement, before filing the red herring prospectus with the Registrar of Companies.

Also Read: Kronox Lab Sciences receives Sebi approval to float IPO

Sanathan Textiles will spend Rs 175 crore out of the net fresh issue proceeds for repaying debts and further Rs 210 crore will be used for long-term working capital requirements of its subsidiary Sanathan Polycot. And the remaining fresh issue money will be utilised for general corporate purposes.

"As of December 2023, our total sanctioned and outstanding indebtedness was Rs 2,608.5 crore and Rs 706.84 crore, respectively," the company said in its DRHP.

With more than 2,800 active varieties of yarn products and more than 30,000 stock keeping units (SKUs), Sanathan Textiles has divided its business into three separate yarn business verticals - polyester yarn products, cotton yarn products; and yarns for technical textiles and industrial uses.

Also Read: Vodafone Idea FPO booked 49% on Day 2, QIBs in lead

Its products are manufactured at the Silvassa facility, which had a total installed capacity of 2,23,750 MTPA across the three yarn verticals as of December 2023.

DAM Capital Advisors and ICICI Securities are the book-running lead managers to the issue.