Mon Dec 23 20:59:11 UTC 2024: **Sanathan Textiles IPO Oversubscribed, Expected to List at a Premium**

MUMBAI, INDIA – Sanathan Textiles’ initial public offering (IPO) closed on December 23rd, significantly oversubscribed at 35.12 times. The ₹550 crore IPO, which offered shares at ₹305-₹321, saw strong demand across all investor categories: retail investors (8.93 times), non-institutional investors (42.21 times), and qualified institutional buyers (75.62 times).

The grey market premium (GMP) suggests a potential listing price of ₹362, approximately 13% higher than the upper price band. This positive market sentiment reflects investor confidence in the company’s growth prospects.

Sanathan Textiles plans to use ₹400 crore of the funds raised for expansion, primarily for a new polyester yarn facility in Punjab which will more than double production capacity by FY25. The remaining ₹150 crore will be used for an offer for sale (OFS). The company is expected to list on the BSE and NSE on December 27th.

While DRChoksey FinServ Private Limited holds a neutral view on the IPO, citing a fair valuation (P/E ratio of 20, EV/EBITDA of 13), they also highlight Sanathan’s strong operational efficiency, diverse client base, and strategic growth plans as positive factors. The company’s shift towards value-added products and increasing international sales are anticipated to further boost profitability.

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