The Sanathan Textiles IPO is set to open for subscription on December 19, 2024, and will close on December 23, 2024. With a price band of ₹305 to ₹321 per share, the IPO aims to raise ₹550 crore, comprising a fresh issue of ₹400 crore and an offer for sale (OFS) of ₹150 crore by promoter shareholders. The IPO allotment is expected to be finalized on December 24, with the listing anticipated on December 27, 2024, on both the BSE and NSE.
Investors are closely monitoring the Sanathan Textiles IPO GMP (Grey Market Premium), which is currently signaling positive sentiment for the stock. Here’s everything you need to know about the IPO, its financials, and the company’s growth prospects.
Table of Contents
Sanathan Textiles IPO: Key Details
- IPO Price Band: ₹305 to ₹321 per share.
- Lot Size: Investors can bid for a minimum of 46 shares per lot, requiring a minimum investment of ₹14,766.
- Issue Size: ₹550 crore, including a fresh issue of ₹400 crore and an OFS of ₹150 crore.
- Listing Date: Shares are expected to list on December 27, 2024.
- Use of Proceeds: The funds from the fresh issue will be used for:
- Repayment of specific borrowings.
- Investments in the company’s subsidiary for debt reduction.
- General corporate purposes.
Sanathan Textiles IPO GMP
The Sanathan Textiles IPO GMP is currently around ₹45, indicating a potential listing price of ₹366 (₹321 + ₹45). This suggests a 14% premium over the upper price band, reflecting positive investor sentiment in the grey market. However, it’s important to note that GMP is speculative and may not always reflect the actual listing price.
Key Insights from Sanathan Textiles’ RHP
1. Integrated Presence Across Key Segments
Sanathan Textiles is one of the few companies in India with a presence across polyester, cotton, and technical textiles. The company offers over 2,800 active yarn varieties and 30,000 SKUs, catering to diverse customer needs.
2. Strong Relationships with Leading Brands
The company has established long-term relationships with prominent consumer brands, including Welspun India, Siyaram Silk Mills, D’Décor Home Fabrics, and Wildcraft India.
3. Financial Performance
- Revenue: ₹33,292.13 million in FY23 and ₹22,013.69 million for the nine months ended December 2023.
- EBITDA: ₹2,595.30 million in FY23.
- Profit After Tax: ₹1,527.41 million in FY23.
- Debt Reduction: The company reduced its total borrowings from ₹5,411.63 million in April 2021 to ₹3,740.14 million by February 2024.
4. State-of-the-Art Manufacturing Facility
Sanathan Textiles operates a manufacturing facility in Silvassa, with a production capacity of 223,750 MTPA as of December 2023. The company began operations in FY06 with an installed capacity of 4,500 MTPA.
Growth Drivers for Sanathan Textiles
1. Rising Investments in the Textile Sector
Investments in India’s textile and apparel sector grew at a CAGR of 4.4% between FY12 and FY22, supported by government initiatives like the Amended Technology Upgradation Fund Scheme (ATUFS) and the Scheme for Integrated Textile Parks (SITP).
2. Opportunities in Global Markets
India is the sixth-largest textile exporter globally, with exports valued at USD 39 billion in CY2022. The China-plus-one policy and improvements in India’s textile infrastructure are expected to boost its global market share.
3. Domestic Market Growth
The Indian textile and apparel market, estimated at ₹9,450–9,550 billion in FY24, is projected to grow at a CAGR of 6–7%, reaching ₹12,500–12,700 billion by FY28. Rising incomes, urbanization, and the shift to man-made fibers are driving domestic demand.
Should You Invest in Sanathan Textiles IPO?
1. For Short-Term Investors
The Sanathan Textiles IPO GMP suggests a potential listing gain of around 14%, making it an attractive option for short-term investors looking to capitalize on the initial premium.
2. For Long-Term Investors
Sanathan Textiles’ strong financial performance, integrated presence across key segments, and established relationships with leading brands make it a promising investment for long-term growth.
Conclusion
The Sanathan Textiles IPO offers a compelling opportunity for both short-term and long-term investors. With a strong presence in the textile industry, robust financials, and positive sentiment reflected in the Sanathan Textiles IPO GMP, the company is well-positioned for growth.
While short-term investors can look forward to potential listing gains, long-term investors may benefit from the company’s strategic initiatives, debt reduction, and growing market presence. As the IPO opens for subscription on December 19, it’s time for investors to evaluate their investment goals and make an informed decision.
Read more: Sai Life Sciences Share Price Today: GMP, Share Price Predictions, and Expert Insights
FAQs
1. What is the Sanathan Textiles IPO GMP today?
The Sanathan Textiles IPO GMP is currently around ₹45, indicating a potential listing price of ₹366, which is a 14% premium over the upper price band of ₹321.
2. What is the listing date for Sanathan Textiles IPO?
The shares of Sanathan Textiles are expected to list on December 27, 2024, on both the BSE and NSE.
