About
Sanathan Textiles Limited, established in 2005, manufactures polyester, cotton, and technical yarns used in various sectors, including automotive, healthcare, and construction. The company operates from a facility in Silvassa, with an installed capacity of 223,750 MTPA. As of September 2024, it produces over 3,200 active yarn varieties and 45,000 stock-keeping units (SKUs), with the ability to create a diverse range of yarn products. Sanathan Textiles exports to several countries and has a network of distributors across India and internationally. The company supplies yarn to various clients in the textile and manufacturing sectors.
Issue size
| Funds to be Raised in the IPO |
Amount |
| Overall |
₹550.00 crores |
| Fresh Issue |
₹400.00 crores |
| Offer for sale |
₹150.00 crores |
The utilisation of proceeds:
| Purpose |
INR crores (%) |
| Repayment of borrowings |
160.00 (40.00%) |
| Investment in subsidiary for borrowing repayment |
140.00 (35.00%) |
Financial Snapshot
| Financial Year Ended |
March 2022 |
March 2023 |
March 2024 |
June 2024 |
| Total Assets |
1,796.47 |
1,906.67 |
2,203.68 |
2,529.53 |
| Revenue |
3,201.46 |
3,345.02 |
2,979.8 |
787.76 |
| Profit After Tax |
355.44 |
152.74 |
133.85 |
50.07 |
*All figures are in ₹ Crores.
Strengths
- Presence across three yarn verticals: polyester, cotton, and technical textiles.
- High share of value-added products, including dope dyed, functional, and speciality yarn.
- Fully integrated manufacturing facility with advanced automation and process technology.
- ISO and OEKO-TEX certified manufacturing facility at Silvassa.
- Greenfield manufacturing facility in Punjab to increase polyester yarn production capacity.
- Efficient procurement system with a strong supplier network.
Risk factors
- No long-term raw material supply agreements, relying on key suppliers for critical materials.
- Challenges in accurately forecasting demand and maintaining optimal inventory.
- High working capital requirements and potential funding difficulties.
- Delays or defaults in customer payments affect working capital and profitability.
- Foreign raw material imports expose the company to currency fluctuations and geopolitical risks.
- Exposure to import duties and restrictions in export markets impacting competitiveness.
IPO Schedule
| Issue Period |
19th December to 23th December 2024 |
| Price band |
₹ 305 - 321 |
| Minimum Bid quantity |
46 shares |
| UPI Mandate Deadline |
5 PM, 23 December 2024 |
| Allotment Finalization |
24 December 2024 |
| Refund Initiation |
26 December 2024 |
| Share Credit |
26 December 2024 |
| Listing Date |
27 December 2024 |
| Mandate end date |
07 January 2025 |
| Lock-In End Date for Anchor Investors (50%) |
23 January 2025 |
| Lock-In End Date for Anchor Investors (Remaining) |
24 March 2025 |
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