Sanathan Textiles is a prominent polyester yarn manufacturer and a global supplier of Cotton Yarns, Polyester Yarns, and Yarns for Technical Textiles. The company operates in three distinct yarn business verticals, providing a wide range of yarns used across various sectors and industries for different applications and end-uses. With over 44 years of combined experience in the textile industry, the company’s promoters, including Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani, and Dinesh Vrajdas Dattani, bring a wealth of knowledge to the organization, making it a leader in the field.

The Sanathan Textiles IPO is a Book Built Issue amounting to ₹550.00 Crores, consisting of a Fresh Issue of 124.61 Lakh shares worth ₹400.00 Crores and an Offer for Sale (OFS) of 46.72 Lakh shares totaling ₹150.00 Crores. The subscription period for the IPO will open on December 19, 2024, and close on December 23, 2024. The allotment date is expected to be on or around December 24, 2024, with shares likely to be listed on the BSE & NSE by December 27, 2024.

The price band for the IPO is set at ₹305 to ₹321 per equity share, with a lot size of 46 shares. Retail investors need to invest a minimum of ₹14,766, while HNIs must invest in a minimum of 14 lots (644 shares), which amounts to ₹2,06,724. At the upper price band of ₹321, the market capitalization of Sanathan Textiles will stand at approximately ₹2,709.37 Crores.

Sanathan Textiles IPO GMP Today:
The Grey Market Premium (GMP) of the Sanathan Textiles IPO is expected to be around ₹28, based on the company’s financial performance and market demand. The GMP indicates a potential listing gain of 8.72%. However, it’s important to note that GMP is based on unofficial trading, which does not guarantee accurate price discovery, and it should only be used for educational purposes.

The Sanathan Textiles IPO Subscription Status as of December 23, 2024, shows that the IPO has been subscribed 35.12 times on the final day of the subscription period. This strong demand indicates a positive sentiment among investors, which could lead to a strong listing performance.

Sanathan Textiles IPO Anchor Investors Report:
Sanathan Textiles raised ₹164.99 Crores from Anchor Investors at a price of ₹321 per share. A total of 51,40,186 equity shares were allocated to Anchor Investors, which suggests that institutional investors have shown strong confidence in the company.

Sanathan Textiles IPO Allotment Date - Step-by-Step Guide:
The Sanathan Textiles IPO allotment date is scheduled for December 24, 2024. Once the allotment is finalized, investors can check their status by visiting the registrar’s website. Here’s how you can check the allotment status:

• Visit the IPO allotment status page.
• Select Sanathan Textiles IPO from the dropdown list.
• Enter your application number, PAN, or DP Client ID.
• Submit your details to check the allotment status.

Objectives of the Sanathan Textiles IPO:
The net proceeds from the IPO will be used for the following objectives:

1. ₹1,600.00 Million to repay or pre-pay borrowings availed by the company.
2. ₹1,400.00 Million to invest in its subsidiary Sanathan Polycot Private Limited to repay or pre-pay borrowings.
3. For general corporate purposes.

Sanathan Textiles IPO Review:
Sanathan Textiles has demonstrated steady growth with revenues from operations for FY24 amounting to ₹7,877.6 Million. However, its EBITDA for FY24 is ₹830.71 Million, reflecting a margin contraction compared to the previous year. Despite this, the company has maintained a positive Profit After Tax (PAT) of ₹500.73 Million in FY24, indicating its profitability.

The pre-issue EPS stands at ₹18.6, with a post-issue EPS of ₹15.86. The P/E ratio for the IPO at the upper price band of ₹321 is 17.26x (pre-issue) and 20.24x (post-issue), compared to the industry’s average P/E ratio of 30x. The company’s ROCE (Return on Capital Employed) for FY24 is 11.80%, and the RoE (Return on Equity) is 11.09%.

Based on the financial performance, valuation, and Grey Market Premium, the Sanathan Textiles IPO appears fairly priced, but the listing gain potential is moderate. Given the company’s growth trajectory, we recommend investors avoid the IPO for listing gains.

The Upcoming IPOs in this week and coming weeks are Anya Polytech, Citichem India, Solar91 Cleantech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India.
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