SEBI Greenlights Sanathan Textiles IPO

6 Nov 2024 , 01:44 PM

The Securities and Exchange Board of India (SEBI) has granted final observation to Sanathan Textiles Ltd., enabling the company to raise capital through an initial public offering (IPO).

With a face value of ₹10, the IPO comprises an offer for sale (OFS) of up to ₹300 crore from the Promoters and Promoter Group, as well as a new equity share issue of up to ₹500 crore. On August 20, 2024, Sanathan Textiles submitted its IPO filings to SEBI again.

Sanathan Textiles has more than 30,000 stock-keeping units (SKUs) and more than 2,800 active yarn product variants by June 30, 2024.

One of the few businesses in India operating in the polyester, cotton, and technical textile industries is Sanathan Textiles. The business produces yarn in three distinct divisions: polyester yarns, cotton yarns, and yarns for industrial and technical textile applications. These divisions are currently managed by a single corporate structure.

The company specialises in creating value-added yarn products, such as cationic dyeable and speciality yarns, as well as dope-dyed, superfine/micro, functional, industrial, and technical yarns.

A total of ₹215 crore would be used to invest in the company’s subsidiary, Sanathan Polycot Private Limited, and ₹160 crore will be used to repay or prepay, in whole or in part, some of the company’s current borrowings.

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