Sanathan Textiles Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹321
Per ShareLot Size
46 Shares
Minimum Investment
₹14,766
Issue Size
₹550 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Sanathan Textiles Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
79.83%
Issue Type
Book Building
ISIN
INE0JPD01013
About the Company
Our company is engaged in the business of manufacturing textile yarn, which is divided into three separate business verticals, consisting of: (a) Polyester yarn products; (b) Cotton yarn products; and (c) Yarns for technical textiles and industrial uses. Our products are manufactured at our facility at Silvassa. Currently, all the three yarn verticals are housed under a single corporate entity. This has facilitated our diversification into new segments which in turn has helped us in serving a large number of customers across various sectors.
Industry Overview
The global textile industry has grown consistently between CY2018 to CY2023, barring CY2020, which saw a decline due to Covid-19. Going ahead, the industry is expected to grow at a CAGR of 2.5 - 3.5% between CY2023 to CY2027 to reach ~USD 1,780-1,830 billion in CY2027. Indian textile and apparel industry which is estimated to be Rs. 9,450 - 9,550 billion as of Fiscal 2024, is projected to reach a value of Rs. 12,500-12,700 billion. Set out below is the projected growth of the Indian textiles and apparel industry, and the exports and domestic sales in the textiles and apparel industry from Fiscal 2024 till Fiscal 2028.
Company History
Our Company was incorporated as `Sanathan Textiles Private Limited', at Kolkata, West Bengal as a private limited company under the Companies Act, 1956 and received a certificate of incorporation issued by the RoC, on October 10, 2005. Thereafter, our Company was converted into a public limited company pursuant to a resolution passed by the shareholders of our Company passed in their meeting on November 12, 2021, and the name of our Company was changed to its present name `Sanathan Textiles Limited', pursuant to a fresh certificate of incorporation issued by the RoC on November 18, 2021.
Growth Strategy
- Expanding our manufacturing capacity.
- Enhance value addition in existing products and development of new products.
- Harnessing digitization and technology in production processes with a focus on energy efficiency and sustainable practices.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 17,133,956 equity shares of face value of Rs. 10 each (equity shares) of Sanathan Textiles Limited ("Company" or "Issuer") for cash at a price of Rs. 321.00 per equity share (including a share premium of Rs. 311.00 per equity share) offer price) aggregating Rs. 550.00 crores (offer) comprising a fresh issue of 12,461,59 equity shares aggregating Rs. 400.00 crores by the company (fresh issue) and an offer for sale of 46,72,897 equity shares aggregating Rs. 150.00 crores by the selling shareholders (offer for sale) comprising 963,769 equity shares aggregating Rs. 30.94 crores by Presh Vrajlal Dattani, 1,080,218 equity shares aggregating Rs. 34.68 crores by Ajay Vallabhdas Dattani, 1,107,850 equity shares aggregating Rs. 35.56 crores by Anilkumar Vrajdas Dattani, 1,158,505 equity shares aggregating Rs. 37.19 crores by Dinesh Vrajdas Dattani (the "Promoter Selling Shareholders"), 7,788 equity shares aggregating Rs. 0.25 crores by Vajubhai Investments Private Limited, 7,788 equity shares aggregating Rs. 0.25 crores by Vallabhdas Dattani huf, 70,093 equity shares aggregating Rs. 2.25 crores by Sonali Ajaykumar Dattani, 7,788 equity shares aggregating Rs. 0.25 crores by Dattani Dineshkumar Vrajdas huf and 109,034 equity shares aggregating Rs. 3.50 crores by Beena Paresh Dattani, 54,519 equity shares aggregating Rs. 1.75 crores by Anilkumar Vrajdas Dattani huf, 93,458 equity shares aggregating Rs. 3.00 crores by Paresh Kumar V Dattani huf, 3,894 equity shares aggregating Rs. 0.13 crores by Jayshree Anilkumar Dattani, 7,788 equity shares aggregating Rs. 0.25 crores by Vllabhdas Dattani and 405 equity shares aggregating Rs. 0.013 crores by Ajay Kumar V Dattani huf (the promoter group selling shareholders and together with the promoter selling shareholders, collectively referred as selling shareholders and such offer for sale by the selling shareholders, the offer for sale). The face value of the equity shares is Rs. 10 each and the offer price is 32.10 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- We are one of the few companies (amongst our peer group) in India with presence across the polyester, cotton and technical textile (which find application in multiple end-use segments including automotive, healthcare, construction, sports and outdoor, and protective clothing) sectors.
- Focus on the product development of new products, through process innovation.
- Fully integrated yarn manufacturing plant set up at a strategic location with equipment supplied by domestic and globally renowned players.
- Long standing association with leading consumer brands with a low customer concentration.
- Deep knowledge and understanding of optimal product assortment and strong supplier network enabling procurement at predicable and competitive pricing, leading to an overall efficient cycle.
- The company does not have long term agreements for supply of its raw materials. If the company is unable to procure raw materials of the required quality and quantity, at competitive prices, its business, results of operations and financial condition may be adversely affected. Majority of its raw materials are sourced from few key suppliers. Discontinuation of operations of such suppliers may adversely affect its ability to source raw materials at a competitive price.
- If the company is unable to gauge the demand of its products accurately and are unable to maintain an optimal level of inventory, its business, results of operations and financial condition may be adversely affected.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
- Its relationship with the company distributors is critical to its business. During quarter ended June 30, 2024, Fiscals 2024, 2023 and 2022, 96.55% 94.48%, 93.01% and 93.31%, respectively, of its total revenue from operations was attributable to its distributors. If the company is unable to maintain successful relationships with its distributors, the company business, results of operations and financial condition may be adversely affected.
- Its may not be able to successfully manage the growth of the company business if its not able to effectively implement the company strategies. In particular, the proposed increase in its manufacturing capacities may not be successful or its may not have demand for the company products which may be commensurate to the proposed increase of its manufacturing capacities.