Sanathan Textiles to Raise ₹800 Crore through IPO

21 Aug 2024 , 11:28 AM

The maker of yarn products, Sanathan Textiles, has filed preliminary documents with the market regulator SEBI a third time. Through an IPO, the company plans to raise ₹800 crore.

The IPO would consist of a new issue of equity shares valued at ₹500 crore and a promoter offer to sell shares valued at ₹300 crore.

The company originally submitted draft documents to SEBI in January 2022, and in May 2022, the regulator approved them. However, the company chose not to proceed with the IPO. Additionally, it had re-filed IPO forms in April 2024 in an attempt to raise ₹800 crore, but on July 31, SEBI returned the aforementioned offer materials.

The textile company may think of raising a hundred crore rupees before submitting the Red Herring Prospectus to the ROC. It will deduct that amount from the new issue if it raises the specified amount in a pre-IPO placement.

Of the net proceeds from the fresh offering, it plans to use ₹375 crore to pay off debt and the rest amount for general corporate reasons.

Sanathan Textiles has over 30,000 stock keeping units and over 2,800 active yarn product variations.

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