Shares of Sanathan Textiles Ltd made a strong debut on the stock exchanges. Sanathan Textiles share price was listed at ₹422 per share, a 31% premium over its IPO price of ₹319, on Friday, December 27 on NSE. Whereas the shares were listed on BSE at ₹419.10 and currently trading at ₹393.20 with a 22.40% gain from the IPO price.
The Sanathan Textiles IPO, which was open between December 19 and 24, garnered significant interest, with an overall subscription of 36.9 times the total shares on offer. The issue received bids worth over ₹14,000 crore against the initial plan of raising ₹550 crore.
The IPO comprised a fresh issue of shares worth ₹400 crore and an Offer for Sale (OFS) component of ₹150 crore. The allotment of shares was finalised on December 24, after receiving enthusiastic participation from various investor categories.
Qualified Institutional Buyers (QIBs) led the charge with a subscription of 75.62 times, while non-institutional investors subscribed 42.18 times their reserved portion. Retail investors also showed strong interest, placing bids 8.84 times higher than the shares reserved for them. Overall, investors placed bids for 44.26 crore shares against the 1.26 crore shares on offer.
Sanathan Textiles plans to utilise ₹160 crore from the fresh issue proceeds to partially or fully repay existing debts. Another ₹140 crore will be invested in its subsidiary, Sanathan Polycot Pvt. Ltd., while ₹100 crore will be allocated for general corporate purposes.
The company operates across three key verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial applications. Sanathan Textiles caters to a diverse customer base, including multinational corporations and local businesses, further solidifying its position in the market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
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