The Mumbai-based textile company is one of the few companies in India with presence across the polyester, cotton and technical segment. The shares to be listed on both NSE and BSE.
Yarn manufacturer Sanathan Textiles has filed draft red herring prospectus (DRHP) papers with Securities Exchanges Board of India (DRHP) to launch initial public offer (IPO), to raise Rs 1300 crore, the company said in a statement released on Friday.
The Mumbai-based textile company is one of the few companies in India with presence across the polyester, cotton and technical segment. The shares to be listed on both NSE and BSE.
Here are the top 10 things to know regarding this IPO:
1)The IPO comprises of fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale of up to 11,400,000 equity shares by Dattani Family.
2) The market sources suggest that the issue size will be in the range of Rs 1200-1300 crore, the press statement of the company said.
3) The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore.
4) The proceeds will be used to extent of Rs 325 crore to repay/prepay in full or part, borrowings, while Rs 65 crore for funding working capital requirements and general corporate purposes.
5) The company’s business is divided into three separate verticals: Polyester yarn products; Cotton yarn products; and Yarns for technical textiles and industrial uses located at Silvassa facility.
6) The company caters to a number of multinational, regional and local companies such as Arvind Ltd, Trident Ltd, Welspun India Ltd, Page Industries Ltd, D’décor Home Fabrics Pvt Ltd.
7) Its clientele also includes Creative Group, Ascent Yarns and Paragon which eventually caters to DKNY, Calvin Klein, Zara, US Polo Association, Adidas, Nike, H&M, Levis, Uniqlo.
8) The company supply yarns across a broad spectrum of industries such as apparels including sportswear, activewear and innerwear, home textiles, travel and leisure among others.
9) Being a profitable company, Sanathan Textiles reported a profit of Rs 185.63 crore on revenue of Rs 1,918.36 crore for fiscal 2021. And, it had a return on equity (RoE) of 29.42 per cent for FY21.
10) Edelweiss Financial Services Limited and JM Financial Limited are the book running lead managers to the issue, Axcelus Finserv is advisor to the offer with AZB & Partners and Trilegal being the legal counsels.
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