Sanathan Textiles Ltd. will launch its initial public offering on Dec. 19 at a price band of Rs 305-321 per share.

The IPO comprises both an offer-for-sale component, as well as a fresh issue of shares. The company will offload shares worth Rs 150 crore through the OFS—the proceeds of which will be entirely received by the selling shareholders. The company is also set to issue fresh shares worth Rs 400 crore. The maiden issue will be worth Rs 550 crore at the upper end of the price band.

Following the public issue, shares of Sanathan Textiles will be listed on the NSE and the BSE.

Promoters Paresh Vrajlal Dattani, Ajay Vallabhdas Dattani, Anilkumar Vrajdas Dattani, and Dinesh Vrajdas Dattani will be offloading shares under the offer-for-sale component, alongside promotor groups Vajubhai Investments Pvt., Vallabhdas Dattani HUF, Sonali Ajaykumar Dattani, Dattani Dineshkumar Vrajdas HUF, Beena Paresh Dattani and Anilkumar Vrajdas Dattani HUF.

Dinesh Vrajdas Dattani and Anilkumar Vrajdas Dattani, two of the promotors selling their shares, will be offloading shares worth Rs 37.19 crore and Rs 35.56 crore respectively through the OFS.

The anchor investment round is scheduled on Dec. 18, a day before the offer opens for subscription. The IPO will close on Dec. 23.

DAM Capital Advisors Ltd., and ICICI Securities Ltd. are the book-running lead managers for the IPO, whereas KFin Technologies Ltd. is the registrar for the issue.

The company proposes to use the proceeds of the issue towards repayment of borrowings and general corporate purposes, as well as investment in subsidiary, namely Sanathan Polycot Pvt.

Sanathan Textiles Business

Sanathan Textiles has presence across the polyester, cotton and technical textile sectors with a market share of 1.7% in the overall Indian textile yarn industry as of fiscal 2024, per Crisil. All the three yarn verticals are housed under a single corporate entity. The company has more than 3,200 active varieties of yarn products, and a high share of value-added products including dope dyed, superfine/micro, functional, industrial and technical yarn, cationic dyeable and specialty yarn. Their business is divided into three separate yarn business verticals, consisting of polyester yarn products, cotton yarn products and yarns for technical textiles and industrial uses.

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