Sanathan Textile, a yarn manufacturer, plans to raise Rs 800 crore through an initial public offering with equity and OFS, following preliminary papers filed with capital market regulator Sebi in New Delhi. The initial public offering consists of a fresh equity share issue of up to Rs 500 crore and an offer for sale of up to Rs 300 crore by promoters and group entities.
The company may consider a placement of equity shares aggregating up to Rs 100 crore, reducing the size of the fresh issue. The proceeds from the Rs 210 crore fresh issue will be used for investment in the company’s subsidiary, as per the draft paper filed on 17th April.
Sanathan Polycot Private Limited is seeking rs 175 crore to fund its long-term working capital requirements and repay debt. The company operates three yarn business divisions: polyester, cotton, and technical textile and industrial applications. In fiscal year 2023, the company’s consolidated revenue was Rs 3,329.21 crore, and its profit after tax was Rs 152.74 crore.
In January 2022, the company filed draft documents with the regulator to raise funds through an IPO. It received Sebi’s nod in May 2022 but did not float it. Dam Capital Advisors Ltd and ICICI Securities Ltd are the lead managers, and the equity shares are proposed to be listed on BSE and NSE.
