Sanathan Textiles, a renowned polyester yarn manufacturer and global supplier of Cotton Yarns, Polyester Yarns, and Yarns for Technical Textiles, has launched its IPO, offering a unique opportunity for investors. With a total issue size of ₹550 Crores, the IPO includes a Fresh Issue of ₹400 Crores and an Offer for Sale (OFS) of ₹150 Crores. This IPO is a Book Built Issue, with a price band set between ₹305 and ₹321 per share.

IPO Subscription and Key Dates

The subscription period for the Sanathan Textiles IPO opened on December 19, 2024, and will close on December 23, 2024. The allotment process is expected to be completed by December 24, 2024, and shares are slated for listing on the BSE and NSE on December 27, 2024. The lot size is set at 46 shares, with a minimum retail investment of ₹14,766. High-Net-Worth Individuals (HNIs) need to invest ₹2,06,724 for a minimum of 14 lots, which amounts to 644 shares.

Financial Highlights and IPO Valuation

Sanathan Textiles has demonstrated strong financial performance over the years, with revenues from operations for FY24 at ₹7,877.6 million, alongside EBITDA of ₹830.71 million. The company reported a Profit after Tax (PAT) of ₹500.73 million for FY24. The pre-issue and post-issue Earnings Per Share (EPS) stand at ₹18.6 and ₹15.86, respectively. The P/E ratio for the IPO is 17.26x pre-issue and 20.24x post-issue, which compares favourably with the industry P/E ratio of 30x. With ROCE of 11.80% and ROE of 11.09% for FY24, the valuation of the IPO appears reasonable.

Grey Market Premium (GMP) and Market Expectations

The Grey Market Premium (GMP) for Sanathan Textiles is currently ₹28, indicating potential listing gains of around 8.72%. The GMP is a non-official indicator based on market sentiment and can be volatile. It is important to note that no real trading takes place in the grey market, and prices fluctuate based on demand and supply of the shares in an unregulated manner. As such, investors are advised to rely on the official listing prices and performance.

Anchor Investors and Fundraising Details

Sanathan Textiles raised ₹164.99 Crores from Anchor Investors at ₹321 per share. This represents a significant endorsement of the company's value, with 51,40,186 equity shares allocated to these investors. This backing is often a strong signal of confidence in the company’s financials and future prospects.

IPO Objectives and Fund Utilisation

The primary objectives of the IPO are as follows:

1. Repayment of Borrowings: A significant portion, ₹1,600 million, will be used to repay or prepay borrowings, helping to strengthen the company’s balance sheet.
2. Investment in Subsidiary: ₹1,400 million will be directed to invest in Sanathan Polycot Private Limited, ensuring continued growth and financial stability.
3. General Corporate Purposes: The remaining funds will be allocated for various corporate needs, supporting the company’s expansion plans.

How to Check Sanathan Textiles IPO Allotment Status

For those who applied for the Sanathan Textiles IPO, checking the allotment status is simple:

1. Go to the Registrar’s IPO Allotment Status Page.
2. Select Sanathan Textiles IPO from the dropdown menu.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check the allotment status.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX.