Sanathan Textiles Files Rs.1,300 Crore Initial Public Offering Draft Papers with SEBI

Sanathan Textiles Files Rs.1,300 Crore Initial Public Offering Draft Papers with SEBI Sanathan Textiles, a yarn maker, has filed preliminary filings with SEBI, the capital markets regulator, to raise roughly Rs.1,300 crore through an IPO (IPO). According to the draught red herring prospectus, the initial share-sale will include a fresh issue of equity shares worth up to 500 crore and an offer-for-sale of up to 1.14 crore equity shares (DRHP). The Mumbai-based firm may pursue a pre-IPO equity share issuance for up to Rs.100 crore. The issue size will be in the range of Rs.1,200-1,300 crore, according to news agency PTI. The proceeds from the new share offering will be used to retire debt in the amount of 325 crore and to meet working capital requirements in the amount of 65 crore, in addition to general corporate reasons. Sanathan Textiles was founded in 2005 and is separated into three yarn business verticals: polyester yarn goods, cotton yarn products, and yarns for technical textiles and industrial purposes, all of which are made in its Silvassa site. The company's yarn manufacturing capacity has increased over time, from 4,500 metric tonnes per annum (MTPA) in 2006 to 221,050 MTPA in 2021. In FY21, Sanathan Textiles made a profit of 185.63 crore on revenue of 1,918.36 crore. For the six months ending September 2021, it had a profit of 170.78 crore on revenue of 1,438.88 crore. The issue's book running lead managers are Edelweiss Financial Services and JM Financial. The company's shares are expected to be listed on the NSE and the BSE.