Sanathan Textiles Files Rs 800 Cr IPO: Sebi Approval

New Delhi, Apr 19 (PTI) Yarn manufacturer Sanathan Textiles has filed preliminary papers with capital markets regulator Sebi to raise Rs 800 crore through an initial public offering.

The Initial Public Offering (IPO) is a combination of a fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale (OFS) of up to Rs 300 crore by promoters and promoter group entities, according to the Draft Red Herring Prospectus (DRHP).

Additionally, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore.

If such placement is undertaken then the size of the fresh issue will be reduced.

As per the draft papers filed on Wednesday, proceeds from the fresh issue of shares worth Rs 210 crore will be used for investment in the company's subsidiary -- Sanathan Polycot Private Limited -- for funding its long-term working capital requirements, Rs 175 crore for repayment of debt and besides 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 currently managed under a single corporate entity.

The company's consolidated revenue from operations during the fiscal year 2023 was at Rs 3,329.21 crore and profit after tax stood at Rs 152.74 crore.

Earlier in January 2022, the company filed draft documents with the markets regulator to mobilise funds through an IPO. It had received Sebi's nod in May 2022 to float the public issue but did not float it.

Dam Capital Advisors Ltd and ICICI Securities Ltd are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.