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Sanathan Textiles IPO opens for subscription. Should you bid or skip?
Team Finance Saathi
19/Dec/2024
What's covered under the Article:
- Overview of the Sanathan Textiles IPO, including price band and subscription status.
- Analysis of the Grey Market Premium (GMP) and expected listing gains.
- Step-by-step guide on how to check your Sanathan Textiles IPO allotment status.
Sanathan Textiles is a leading polyester yarn manufacturer and a global supplier of Cotton Yarns, Polyester Yarns, and Yarns for Technical Textiles. The company operates across three yarn business verticals, providing a diverse range of products used across various industries and applications. This unique positioning allows them to meet the growing demand for high-quality yarns in different sectors.
The Sanathan Textiles IPO is a book-built issue amounting to ₹550.00 Crores, which includes 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 for the IPO opens on December 19, 2024, and will close on December 23, 2024. The allotment of shares is expected to be finalized by December 24, 2024, and the shares will be listed on BSE and NSE on December 27, 2024.
The price band for the IPO is set between ₹305 and ₹321 per equity share. At the upper price band of ₹321, the market capitalization of Sanathan Textiles is estimated to be ₹2,709.37 Crores. The lot size for the IPO is 46 shares, and retail investors are required to invest a minimum of ₹14,766. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,06,724, which is for 14 lots (644 shares).
The book-running lead managers for this IPO are DAM Capital Advisors Limited and ICICI Securities Limited, with KFin Technologies Limited serving as the registrar.
Sanathan Textiles IPO Grey Market Premium (GMP)
As of December 18, 2024, the Grey Market Premium (GMP) of Sanathan Textiles IPO stands at ₹28, indicating a potential listing gain of 8.72%. It’s important to note that GMP reflects unregulated market demand and should be considered for informational purposes only, not as a reliable indicator of actual price discovery.
Sanathan Textiles IPO Subscription Status
As of 12:39 PM on December 19, 2024, the Sanathan Textiles IPO was subscribed 0.18 times on its first day of the subscription period, showing a slow but steady demand for the shares. Investors can check the live subscription status on the BSE website for real-time updates.
Sanathan Textiles IPO Anchor Investors
Sanathan Textiles raised ₹164.99 Crores from anchor investors at a price of ₹321 per share. The company allocated 51,40,186 equity shares to these investors, signaling institutional confidence in the IPO.
How to Check Sanathan Textiles IPO Allotment Status
The allotment date for the Sanathan Textiles IPO is December 24, 2024. Here's how you can check the allotment status:
- Visit the registrar’s website.
- Select Sanathan Textiles Limited IPO from the dropdown list.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check if you’ve been allotted shares.
Financial Performance and Valuation
Sanathan Textiles has shown a strong performance, with revenues for the period ending June 30, 2024, reaching ₹7,877.6 Million. The EBITDA for the same period was ₹830.71 Million, and the Profit After Tax (PAT) stood at ₹500.73 Million.
The company’s pre-issue EPS is ₹18.6, while the post-issue EPS is expected to be ₹15.86. The P/E ratio at the upper price band is 17.26x pre-issue and 20.24x post-issue, compared to the industry’s average of 30x, suggesting that the IPO is fairly priced.
Why Invest in Sanathan Textiles IPO?
Given its stable financial performance, a solid track record in the textile industry, and the relatively low valuation compared to the industry average, Sanathan Textiles IPO could be a worthwhile opportunity for long-term investors. However, the listing gains might be modest, and the slow subscription rate on the first day indicates that investors should carefully evaluate their risk appetite before applying.
The Upcoming IPOs in this week and coming weeks are Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse Financial.
The Current active IPO is Transrail Lighting, Mamata Machinery, DAM Capital Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios and NACDAC Infrastructure.