IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

To be announced

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

About Sanathan Textiles Limited IPO

Sanathan Textiles is set to launch its IPO, which includes a fresh issue of equity shares worth up to ₹500 crore and an offer for sale of up to ₹300 crore by promoters and promoter group entities. The company may also consider a pre-IPO placement of equity shares worth up to ₹100 crore. If this placement occurs, the size of the fresh issue will be reduced accordingly. The shares will be listed on both the BSE and NSE, with Dam Capital Advisors Ltd and ICICI Securities Ltd serving as the lead managers.

Proceeds from the fresh issue will be directed towards specific purposes, including ₹210 crore for investment in the company’s subsidiary, Sanathan Polycot Private, to meet long-term working capital needs. Additionally, ₹175 crore will be allocated for debt repayment, alongside general corporate purposes.

Sanathan Textiles operates three main divisions: polyester yarns, cotton yarns, and technical textile yarns. For FY2023, the company reported consolidated revenue of ₹3,329.21 crore and a profit after tax of ₹152.74 crore. The IPO marks the company's first foray into the public market.

Industry Outlook:

  1. The clothing and footwear segment of Private Final Consumption Expenditure (PFCE) logged a CAGR of 4.6% between FY2012 to FY2022, with spending rising to ₹4,898 billion in FY2022 from ₹3,960 billion in FY2021. This growth indicates a positive outlook for consumer demand.
  2. India's population surpassed China's by 2.9 million in 2023, and the urban population is expected to reach 40% by 2030. This demographic shift, coupled with rising per capita income, is set to drive consumer demand for textiles.
  3. The global textile industry is expected to grow at a CAGR of 2.5% to 3.5% between 2023 and 2027, reaching USD 1,780-1,830 billion. As a key player in the textile market, Sanathan Textiles Limited can capitalise on this global growth.

Sanathan Textiles Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. The net proceeds will be used to repay or prepay certain company borrowings, helping reduce debt liabilities.
  2. Proceeds will also support Sanathan Polycot Private Limited in repaying or pre-paying its own borrowings, strengthening the subsidiary's financial position.
  3. The remaining funds will be allocated for general corporate purposes.

About Sanathan Textiles Limited

Sanathan is a prominent player in India's textile industry, engaged in the polyester, cotton, and technical textile sectors. The company boasts an extensive product range with over 14,000 yarn varieties and more than 190,000 stock-keeping units (SKUs). It manufactures a wide array of yarn products, including dope-dyed, industrial, and specialty yarns, tailored through extensive in-house research to meet diverse customer needs.

The company's facility in Silvassa, which has an installed capacity of 223,750 MTPA as of June 30, 2024, focuses primarily on polyester yarn production. Sanathan Textiles serves a wide customer base, including leading brands such as Welspun India Limited and Page Industries Limited. A substantial portion of its revenue comes from both domestic and export markets.

Sanathan Textiles is committed to sustainability, actively incorporating renewable energy into its operations. The company has installed rooftop solar projects with a capacity of 2.35 MW at its Silvassa facility, contributing to its goal of increasing the share of renewable energy in its consumption. The firm’s strategic focus on expanding its product offerings and leveraging growth in the textile industry positions it well to capitalise on emerging market opportunities.

Peer Details

The following are the listed companies in India engaged in a business similar to Sanathan Textiles Limited:

  1. K.P.R. Mill Limited
  2. Vardhman Textiles Limited
  3. Indo Count Industries Limited
  4. Filatex India Limited
  5. Garware Technical Fibres Limited

How to Check the Allotment Status of the Sanathan Textiles Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Sanathan Textiles Limited IPO

  • Registered office: SRV NO. 187/4/1/2, Near Surangi Bridge, Surangi, Dadra & Nagar Haveli, Silvassa -396230, India
  • Phone: + 91 22 6634 3312/3/4/5/6
  • E-mail: investors@sanathan.com

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ million) 29,575.04 33,292.13 31,853.20
EBITDA (in ₹ million) 2,265.81 2,595.30 5,376.12
Profit After Tax (PAT) (in ₹ million) 1,338.48 1,527.41 3,554.42
Return on equity (%) 11.09 14.36 43.95
Net debt (in ₹ million) 3,499.49 2,719.82 3,702.62
Return on capital employed (RoCE) (%) 11.80 15.54 35.83
Earnings Per Share (in ₹) 18.60 21.24 49.40

Know before investing

Strengths

6

  1. Sanathan Textiles excels with polyester, cotton, and technical yarns.

  2. The company’s strong focus on custom, high-value yarn products enhances its market position.

  3. Strategic location in Gujarat boosts logistical efficiency and production.

  4. The new Punjab facility will triple the polyester yarn capacity by 2027.

  5. Established ties with leading brands ensure steady revenue streams.

  6. Investing in recycled yarn production supports eco-friendly business expansion.

Risks

6

  1. Lack of long-term agreements may lead to revenue unpredictability for Sanathan Textiles.

  2. Uncertain demand forecasting could impact production and financial stability adversely.

  3. Dependence on purchase orders risks order cancellations and revenue delays.

  4. Operational disruptions at production facilities could significantly affect business outcomes.

  5. Regulatory issues involving promoters might harm the company's reputation and operations.

  6. Incomplete disclosure about promoters may create transparency concerns.

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Sanathan Textiles Limited IPO FAQs

What is the Sanathan Textiles Limited IPO?

The Sanathan Textiles Limited IPO is a book built issue IPO. The exact dates and IPO price range are yet to be announced. 

When will the Sanathan Textiles Limited IPO be allotted?

The exact dates and price range are yet to be announced. 

When will Sanathan Textiles Limited IPO open for subscription?

The IPO subscription window is not announced yet.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot. However, the lot size has not been announced yet.

When will Sanathan Textiles Limited list on exchanges?

The exact date is not announced yet.

What would be the listing gains on the Sanathan Textiles Limited IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to apply for Sanathan Textiles Limited IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the ‘IPO’ section on the platform.
  3. Select IPO: Find and select the Sanathan Textiles Limited IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How to increase your chances of getting a Sanathan Textiles Limited IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for the Sanathan Textiles Limited IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Sanathan Textiles Limited using one PAN?

You can submit only one application using your PAN card.

How to read Sanathan Textiles Limited's financial statements?

To read Sanathan Textiles Limited’s financial statements, download the IPO’s  DRHP document.