Sanathan Textiles IPO: A Seamless Success Story

Sanathan Textiles' IPO attracted an impressive subscription, being oversubscribed 35.12 times on the final bidding day. With a price band of Rs 305-321, the Rs 550-crore IPO aims to repay debts and invest in its subsidiary. The shares will be listed on both BSE and NSE.

Sanathan Textiles, one of the leading names in the yarn manufacturing sector, has seen its initial public offering (IPO) achieve an astounding subscription rate of 35.12 times on the final day of bidding, as reported on Monday.

NSE data reveals that bids were placed for a total of 44,32,74,446 shares, vastly surpassing the 1,26,22,950 shares on offer. In particular, the Qualified Institutional Buyers (QIBs) category showcased massive interest, mopping up to 75.62 times subscription, while non-institutional investors subscribed 42.21 times, and Retail Individual Investors (RIIs) secured 8.93 times subscription.

Sanathan Textiles aims to utilize Rs 160 crore from the fresh issue proceeds for debt repayment. An additional Rs 140 crore will be channeled into its subsidiary, Sanathan Polycot Pvt Ltd, towards the repayment or prepayment of its borrowings. Dam Capital Advisors and ICICI Securities are managing the books for this issue, while the equity shares are set to make their debut on the BSE and NSE.