The Mumbai-based Yarn manufacturer Sanathan Textiles has filed draft red herring prospectus (DRHP) papers with Securities Exchanges Board of India (DRHP) to launch initial public offer (IPO), to raise Rs 1300 crore.
The textile company is one of the few companies in India with presence across the polyester, cotton and technical segment.
The shares will listed on both NSE and BSE.
The market sources suggest that the issue size will be in the range of Rs 1200-1300 crore, the press statement of the company said.
The company, in consultation with the lead bankers to the issue, may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore.
The proceeds will be used to extent of Rs 325 crore to repay/prepay in full or part, borrowings, while Rs 65 crore for funding working capital requirements and general corporate purposes.
The company’s business is divided into three separate verticals: Polyester yarn products; Cotton yarn products; and Yarns for technical textiles and industrial uses located at Silvassa facility.
The company caters to a number of multinational, regional and local companies such as Arvind Ltd, Trident Ltd, Welspun India Ltd, Page Industries Ltd, D’décor Home Fabrics Pvt Ltd.
Being a profitable company, Sanathan Textiles reported a profit of Rs 185.63 crore on revenue of Rs 1,918.36 crore for fiscal 2021. And, it had a return on equity (RoE) of 29.42 per cent for FY21.
