Last Updated:
Sanathan Textiles IPO: Unlisted shares of Sanathan Textiles Ltd are trading at Rs 381 in the grey market, reflecting a premium of Rs 60 (18.69%) over the upper price band of Rs 321.
Sanathan Textiles IPO.
Sanathan Textiles IPO: The initial public offering of yarn manufacturer Sanathan Textiles Ltd, which opened on Thursday, has so far received a subdued response. The price band of the IPO has been fixed in the range of Rs 305 to Rs 321 per share. Till 5:00 pm on the second day on Friday, the IPO received bids for 1,83,15,682 shares as against the 1,19,93,770 shares on offer, resulting in a subscription rate of 1.53 times.
So far, the retail category has received a 2.31 times subscription, while the non-institutional category (NII) got a 1.61 times subscription. The QIB category has been subscribed by 1 per cent.
Sanathan Textiles IPO: Key Dates
Closing Date: December 23 (Monday)
Allotment Finalisation: December 24
Listing on BSE and NSE: December 27 (Friday)
Sanathan Textiles IPO GMP Today
As per market observers, the unlisted shares of Sanathan Textiles Ltd are trading at Rs 381 in the grey market, reflecting a premium of Rs 60 (18.69%) over the upper price band of Rs 321. This indicates positive listing gains for investors on December 27.
The 18.69 per cent GMP is lower than the 21.81 per cent grey market premium recorded in the morning.
The GMP is subject to sentiments in the market and may change.
Sanathan Textiles IPO: More Details
The Rs 550-crore IPO is a combination of a fresh issue of equity shares aggregating up to Rs 400 crore and an Offer For Sale (OFS) of shares valued Rs 150 crore by promoters and promoter group entities.
Its price band has been fixed at Rs 305 to Rs 321 per share. The minimum lot size for an application is 46. The minimum amount of investment required by retail investors is Rs 14,766. The minimum lot size investment for small NII is 14 lots (644 shares), amounting to Rs 2,06,724, and for big NII, it is 68 lots (3,128 shares), amounting to Rs 10,04,088.
The company has mobilised Rs 165 crore from anchor investors ahead of its initial share-sale opening for public subscription. SBI Mutual Fund (MF), Nippon India MF, HDFC MF, Kotak MF, Bandhan MF, SBI General Insurance Company, Societe Generale, and PineBridge Global Funds, are among the anchor investors, according to a circular uploaded on the BSE website.
As per the circular, Sanathan Textiles has allotted 51.4 lakh shares to 20 funds at Rs 321 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 165 crore.
The company plans to utilise the proceeds from its fresh issue worth Rs 160 crore for payment of debt, Rs 140 crore will be invested in its subsidiary, Sanathan Polycot Pvt Ltd, for the repayment or prepayment of its borrowings, and the remaining amount will be allocated for general corporate purposes.
Sanathan Textiles operates three distinct yarn business divisions — polyester yarns, cotton yarns, and yarns — for technical textiles and industrial applications. These divisions are managed under a single corporate entity.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Further, investors can bid for a minimum of 46 equity shares and in multiples of 46 equity shares thereafter.
Dam Capital Advisors and ICICI Securities are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the NSE.