Yarn-maker Sanathan Textiles scales down IPO to Rs 800 cr from Rs 1,300 cr

2 min read

Mumbai-based yarn maker Sanathan Textiles Friday scaled down its proposed initial share sale to Rs 800 crore in the new filing with the regulator from Rs 1,300 crore initially planned in 2022.          

Sanathan is among the few  textile players having presence across the polyester, cotton, and technical textile sectors.

The IPO comprises fresh issue of Rs 500 crore and an offer for sale of up to Rs 300 crore by promoters and promoter groups, according to the new DRHP filed with the Sebi Friday. 

The OFS consists of sale of equities up to Rs 61.87 crore by Paresh Vrajlal Dattani, Rs 69.35 crore by Ajay Vallabhdas Dattani, Rs 71.12 crore by Anilkumar Vrajdas Dattani, Rs 74.37 crore by Dinesh Vrajdas Dattani, and Rs 7 crore by Beena Paresh Dattani among other promoters. 

Additionally, the company is also planning a pre-IPO placement of shares worth Rs 100 crore, the company said in a statement. 

Of the Rs 500 crore from the fresh issue, Rs 175 crore will be used to repay debt which will bring down its outstanding debt to Rs 35 crore from Rs 210 crore it had borrowed for  investment into the subsidiary. Sanathan Polycot.

Sanathan Textiles operates three yarn business divisions: polyester  yarns, cotton yarns, and yarns for technical textiles and industrial applications. Its has plants at Silvassa with an annual capacity of 2.2 lakh tonne. Recently itacquired 80 acres in Wazirabad in Punjab to build a 550 tonne per day  greenfield facility that will manufacture polyester yarns.

Some of its clients include Welspun, Valson Industries, and GM Fabrics among others apart from exporting to 29 global markets. But over 95 percent of its revenue comes from domestic market. 

Its FY23  consolidated revenue stood at Rs 3,329 crore up from Rs 3,185 crore in the previous year from which it earned a net profit of Rs 152.74 crore for  fiscal  2023.

For the nine months to  December 2023, revenue stood at Rs 2201 crore, and net income at Rs 81.6crore.

You May Also Like

More From Author

+ There are no comments

Add yours