Tue Dec 24 17:40:00 UTC 2024: ## Sanathan Textiles IPO Oversubscribed, Expected to List at a Premium

**Mumbai, December 23, 2024** – The initial public offering (IPO) of Sanathan Textiles concluded today, significantly oversubscribed at 35.12 times. The ₹550 crore IPO, priced between ₹305 and ₹321 per share, saw strong demand across all investor categories. Retail investors subscribed 8.93 times, non-institutional investors 42.21 times, and qualified institutional buyers a remarkable 75.62 times.

The grey market premium (GMP) currently stands at ₹41, suggesting an estimated listing price of ₹362, a premium of approximately 13% over the upper price band. The company plans to list on the BSE and NSE on December 27.

Sanathan Textiles aims to utilize ₹400 crore of the IPO proceeds for fresh share issuance, with the remaining ₹150 crore allocated to an offer for sale (OFS). The company is poised for significant growth, according to DRChoksey FinServ Private Limited, which holds a neutral outlook on the IPO. DRChoksey highlights Sanathan’s strategic capacity expansion, particularly a new Punjab facility doubling polyester yarn production by FY25, as key growth drivers. The firm also points to a shift towards value-added products and increasing international sales as factors boosting profitability.

While DRChoksey considers Sanathan’s valuation fair, with a P/E ratio of 20 and EV/EBITDA of 13, investors are advised to consult with financial advisors before making investment decisions.

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