Tue Dec 24 17:00:36 UTC 2024: ## Sanathan Textiles IPO Oversubscribed, Strong Grey Market Premium Hints at High Listing Price

**Mumbai, December 24** – Sanathan Textiles Ltd.’s initial public offering (IPO) concluded yesterday, significantly oversubscribed at 36.9 times. The ₹550 crore IPO, comprising a fresh issue of ₹400 crore and an offer for sale (OFS) of ₹150 crore, saw robust demand across all investor categories. Qualified institutional buyers (QIBs) subscribed 79.59 times, non-institutional investors (NIIs) 44.39 times, and retail investors 9.31 times.

The IPO, priced between ₹305 and ₹321 per share, attracted bids for 44,26,24,834 shares against the 1,19,93,770 shares on offer. The company had already secured ₹165 crore from anchor investors prior to the public offering. Major anchor investors included SBI Mutual Fund, Nippon India MF, and HDFC MF, among others.

A strong grey market premium (GMP) of ₹90 as of today suggests a potential listing price of around ₹411 per share at the upper end of the price band, indicating a potential gain of over 28%. However, the GMP is subject to market fluctuations.

Sanathan Textiles, a yarn manufacturer with divisions in polyester, cotton, and technical textiles, plans to utilize the net proceeds from the fresh issue to repay debt, invest in its subsidiary Sanathan Polycot Pvt Ltd, and for general corporate purposes.

The company’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Dam Capital Advisors and ICICI Securities are the book-running lead managers for the IPO. The allotment date is yet to be announced.

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