Sanathan Textiles Ltd
Sanathan Textiles Ltd, a prominent yarn manufacturer in India, is set to launch its Initial Public Offering (IPO) on December 19, 2024. This article provides a comprehensive overview of the IPO, including key details and important dates for potential investors.
Company Overview
Incorporated in 2005, Sanathan Textiles Ltd specializes in the production of polyester yarns, cotton yarns, and yarns for technical textiles and industrial applications. The company operates three distinct yarn business divisions managed under a single corporate entity. As of June 30, 2024, Sanathan Textiles had over 2,800 active yarn product varieties and more than 30,000 stock-keeping units (SKUs).
IPO Timeline
- IPO Opening Date: December 19, 2024
- IPO Closing Date: December 23, 2024
- Basis of Allotment Date: December 24, 2024
- Initiation of Refunds: December 26, 2024
- Credit of Shares to Demat Accounts: December 26, 2024
- Listing Date: December 27, 2024
Price Band and Lot Size
- Price Band: ₹305 to ₹321 per equity share
- Face Value: ₹10 per share
- Lot Size: 46 shares
- Minimum Investment: ₹14,766 for one lot
Financials
Sanathan Textiles Ltd has demonstrated consistent financial performance in recent years:
- FY 2023 Revenue: ₹3,329.21 crore
- FY 2023 Net Profit: ₹152.74 crore
- FY 2024 Revenue: ₹2,979.8 crore
- FY 2024 Net Profit: ₹133.85 crore
- Q1 FY 2025 Revenue: ₹787.76 crore
- Q1 FY 2025 Net Profit: ₹50.07 crore
Strengths
- Diverse Product Portfolio: Manufactures a wide range of yarns catering to various sectors and industries.
- Established Market Presence: Strong distribution network with over 925 distributors in 7 countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.
- Integrated Operations: Comprehensive manufacturing capabilities across polyester, cotton, and technical textiles.
Risks
- Market Dependency: Performance is closely tied to the health of the textile industry and global demand.
- Competitive Industry: Faces significant competition from other established yarn manufacturers.
IPO Anchor Investors Details
The anchor book for the issue opens on December 18, 2024. Details regarding anchor investors will be available after the allocation on this date.
IPO Promoter Holding
The promoters of Sanathan Textiles Ltd are:
- Nimbus Trust
- D&G Family Trust
- A&J Family Trust
- P&B Family Trust
- Paresh Vrajlal Dattani
- Ajay Vallabhdas Dattani
- Anilkumar Vrajdas Dattani
- Dinesh Vrajdas Dattani
| Promoter | Pre-Issue Holding | Post-Issue Holding |
|---|---|---|
| Nimbus Trust | 14.56% | [Data not available] |
| D&G Family Trust | 14.56% | [Data not available] |
| A&J Family Trust | 14.56% | [Data not available] |
| P&B Family Trust | 14.56% | [Data not available] |
| Paresh Vrajlal Dattani | 9.75% | [Data not available] |
| Ajay Vallabhdas Dattani | 10.19% | [Data not available] |
| Anilkumar Vrajdas Dattani | 9.48% | [Data not available] |
| Dinesh Vrajdas Dattani | 9.89% | [Data not available] |
IPO Grey Market Premium (GMP)
As of December 17, 2024, the Grey Market Premium for Sanathan Textiles Ltd’s IPO is approximately ₹45 per share, indicating a potential listing gain of around 14.02%.
| Date | GMP (₹) | Expected Listing Price (₹) |
|---|---|---|
| December 17, 2024 | 45 | 350 – 366 |
Final Thoughts
Sanathan Textiles Ltd’s upcoming IPO offers investors an opportunity to invest in a well-established company with a diverse product portfolio in the textile industry. However, potential investors should carefully consider the associated risks and conduct thorough due diligence before making investment decisions.