Sanathan Textiles Sets Price for IPO Amid Strategic Expansion

Yarn manufacturer Sanathan Textiles is set to launch a Rs 550-crore IPO with shares priced between Rs 305-321. The IPO includes fresh equity shares worth Rs 400 crore and an offer for sale by promoters. Proceeds will aid in debt repayment, subsidiary investment, and corporate purposes.

Sanathan Textiles, the yarn manufacturing giant, announced on Monday a price range of Rs 305-321 per share for its upcoming Rs 550-crore Initial Public Offering (IPO). The public subscription is scheduled between December 19 and December 23, with anchor investor bidding commencing a day earlier on December 18.

The IPO is comprised of a fresh equity issue totaling Rs 400 crore and an offer for sale (OFS) valued at Rs 150 crore by the company's promoters and associated groups. The generated funds will primarily support Sanathan Textiles in repaying debts, investing Rs 140 crore into its subsidiary, Sanathan Polycot Pvt Ltd, for debt clearance, and for general corporate expenditures.

The IPO distribution allocates 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. Dam Capital Advisors Ltd and ICICI Securities will manage the book-running processes. The company's shares are slated for future listing on BSE and NSE.

(With inputs from agencies.)