An initial public offering (IPO) of Rs. 800 crore (US $ 94.83 million) is planned for Sanathan Textiles, a Mumbai-based business with a significant presence in the polyester, cotton, and technical textile industries. On 20th August 2024, the business re-filed its IPO documents, and the Securities and Exchange Board of India (Sebi) has granted it final permission.
The IPO consists of an offer by promoters to sell Rs. 300 crore (US $ 35.56 million) worth of equity shares and a new issue of equity shares up to Rs. 500 crore (US $ 59.27 million). A portion of the holdings of important players, including Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani, and Dinesh Vrajdas Dattani, will be sold.
According to the company’s Draft Red Herring Prospectus, Sanathan Textiles plans to use the money raised from the new offering to fully or partially repay and/or prepay some of the loans it has taken out. Additionally, the profits will be used for general business purposes, repayment and/or prepayment in full or in part of certain borrowings taken out by the subsidiary, and investment in Sanathan Polycot.
Sanathan Textiles specialises in high-value yarn products, including dope-dyed, superfine, technical, and specialty yarns. These value-added items accounted for 51.9 per cent of company sales in FY ’24.
Sanathan Rivero, the company’s eco-friendly line, turns plastic waste into yarn for textiles. As of 30th June 2024, with a large product portfolio, Sanathan Textiles has developed over 2,800 yarn variants and has managed over 30,000 stock-keeping units (SKUs).
