INSUBCONTINENT EXCLUSIVE:
Sanathan Textiles' business is divided into three separate yarn business verticalsYarn manufacturer Sanathan Textiles has filed preliminary
documents with capital markets regulator SEBI to raise around Rs 1,300 crore through an initial public offering (IPO)
The initial share-sale comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an offer-for-sale of up to 1.14 crore
equity shares, according to the draft red herring prospectus (DRHP).The Mumbai-based company might consider a pre-IPO placement of equity
shares aggregating up to Rs 100 crore
According to news agency PTI, the issue size will be in the range of Rs 1,200-1,300 crore.The proceeds from the fresh issuance of shares
will be used to the extent of Rs 325 crore to repay debt, and Rs 65 crore for funding working capital requirements besides general corporate
purposes.Incorporated in 2005, Sanathan Textiles' business is divided into three separate yarn business verticals, consisting of polyester
yarn products; cotton yarn products; and yarns for technical textiles and industrial uses, manufactured at its Silvassa facility.Over the
years, the company has scaled up its yarn production with a total capacity from 4,500 metric tonnes per annum (MTPA) in 2006 to 221,050 MTPA
in 2021.Sanathan Textiles registered a profit of Rs 185.63 crore and revenue of Rs 1,918.36 crore for FY21
It clocked a profit of Rs 170.78 crore and revenue of Rs 1,438.88 crore for the six month ended September 2021.Edelweiss Financial Services
and JM Financial are the book running lead managers to the issue
The shares of the company are proposed to be listed on the NSE and the BSE.
