The much-awaited Initial Public Offering (IPO) of Sanathan Textiles Ltd. is set to hit the stock markets on Thursday, December 19, 2024. Investors have a chance to participate in the growth of one of the leading manufacturers of polyester yarn in India. The Sanathan Textiles IPO will be open for subscription until December 23, 2024.
IPO Dates:
- Opening Date: December 19, 2024
- Closing Date: December 23, 2024
The IPO will open for subscription on December 19, and retail investors, as well as institutional investors, can place their bids until December 23, 2024.
Price Band and Lot Size:
- Price Band: ₹305 to ₹321 per share
- Lot Size: 46 shares
The price range for a single share in the Sanathan Textiles IPO has been fixed between ₹305 and ₹321. The minimum investment amount required to apply for the IPO is ₹14,766, which is for a lot size of 46 shares.
IPO Size and Composition:
- Total Issue Size: ₹550 crore
- Fresh Issue: ₹400 crore
- Offer for Sale (OFS): ₹150 crore
The Sanathan Textiles IPO seeks to raise ₹550 crore in total. This includes a fresh issue of ₹400 crore, where the company will issue new shares to raise capital, and an Offer for Sale (OFS) of ₹150 crore, where existing shareholders will sell part of their stake in the company.
Sanathan Textiles is a prominent player in India’s textile industry, known for manufacturing polyester yarn, cotton yarn, and yarns used in technical textiles. Technical textiles are advanced materials utilized in industries such as healthcare, automotive, and construction. With a strong client base, including top brands like Welspun, Page Industries, and Siyaram Silk Mills, Sanathan Textiles has established itself as a reliable supplier.
IPO Allotment and Listing:
- IPO Allotment Date: December 24, 2024
- Shares Credit Date: December 26, 2024
- Listing Date: December 27, 2024
After the IPO closes on December 23, the share allotment will be finalized by December 24. Eligible investors will have the shares credited to their Demat accounts on December 26, 2024. For those who do not receive allotment, refunds will also be processed on the same day. The shares are anticipated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 27, 2024.
The Sanathan Textiles IPO has reserved 50% of the shares for Qualified Institutional Buyers (QIB), 35% for retail investors, and 15% for Non-Institutional Investors (NII). Retail investors can apply for a minimum of 46 shares, and they will be allotted shares based on the subscription level.
As with any investment, there are risks involved. These include market fluctuations, competition, regulatory changes, and the company’s ability to meet its business objectives. Investors should carefully evaluate these risks before deciding to participate in the IPO.
The Sanathan Textiles IPO presents an exciting investment opportunity for those interested in the textile industry. With strong financials, a solid customer base, and a promising industry outlook, this IPO could be a good option for investors seeking to diversify their portfolios. However, it’s essential to conduct thorough research, evaluate the risks, and make informed decisions.
