Shares of Sanathan Textiles Ltd. listed on the stock exchanges at ₹422 per share, a 31% premium compared to its IPO price of ₹319 on Friday, December 27.
The Sanathan Textiles IPO saw healthy subscription of 36.9 times the total shares on offer. The three-day issue received bids worth over ₹14,000 crore, compared to the initial plan of raising ₹550 crore.
Sanathan Textiles’ IPO was a combination of a fresh issue of shares worth ₹400 crore and an Offer for Sale (OFS) component of ₹150 crore.
Sanathan Textiles intends to use ₹160 crore out of the ₹400 crore proceeds to repay its existing dues in part or full, while ₹140 crore will be used to invest in its subsidiary, Sanathan Polycot Pvt. Ltd. The other ₹100 crore will be used for general corporate purposes.
The Sanathan Textiles IPO was open between December 19 and 24. The allotment for the IPO was finalised on December 24 after the three-day issue received healthy subscription.
The Sanathan Textiles IPO was subscribed 35.05 times, led by qualified institutional buyers (QIBs). Overall, investors placed bets for 44.26 crore shares, compared to the 1.26 crore shares that were on offer for them.
The portion for institutional investors was subscribed 75.62 times, while that for non-institutional investors was subscribed 42.18 times.
Retail investors too placed bids that were 8.84 times higher than the shares reserved for them in the IPO.
The manufacturing company has three business verticals — polyester yarn products, cotton yarn products and yarns for technical textiles and industrial uses. It sells its products to a diverse customer base, including both multinational and local companies.
For the first quarter of this fiscal, the company reported a revenue of ₹781 crore, with a profit after tax of ₹50 crore. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 76.4 crore, with a margin of 9.7%.
In FY24, the company reported a revenue of 2,957 crore, with a PAT of ₹134 crore, EBITDA of 226.5 crore and margin of 7.6%. Whereas, in FY23, it reported a revenue of ₹3,329 crore, PAT of 152.7 crore, EBITDA of 259.5 crore and margin of 7.8%.
The polyester yarn product contributed 76.8% to its first quarter in FY25 revenue, while the cotton yarn products and industrial and technical textiles yarns contributed 18.7% and 4.4%, respectively.
Content retrieved from: https://www.cnbctv18.com/market/sanathan-textiles-share-price-ipo-listing-nse-bse-subscription-allotment-stock-reaction-19530360.htm.
