Sanathan Textiles submits draught IPO papers with the Securities and Exchange Board of India (Sebi)
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10 January 2022, Mumbai:
Sanathan Textiles, a yarn manufacturer, has filed a draught initial public offering (IPO) with market regulator Sebi, with an issue size of Rs 1,200 crore ($180.4 million) to Rs 1,300 crore. According to the draught red herring prospectus, Sanathan Textiles seeks to raise Rs 500 crore through a new issue of equity shares as part of the IPO.
According to ET Markets, the company's promoters would also make an offer for sale of up to 11,400,000 equity shares. Edelweiss Financial Services and JM Financial are the issue's book running lead managers.
A pre-IPO placement of equity shares worth up to Rs 100 crore is also being considered by the Mumbai-based company.
A portion of the revenues from the new share issuing will be used to settle the company's debts, while a smaller portion will be utilised for working capital and general business objectives.
Sanathan Textiles recorded a revenue of Rs 1,918.36 crore and a profit of Rs 185.63 crore for the fiscal year 2021.
According to its website, the company produces a variety of eco-friendly fabrics and yarns, as well as textiles used to build everything from PPE to home furnishings. Customers include Welspun India and Arvind, among others, according to the company.
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