The proceeds from the supply will probably be used for reimbursement of debt, funding of their subsidiary Sanathan Polycot and normal company functions.
Sanathan Textiles IPO: value band
The corporate has fastened a value band of Rs 305-321 per share, the place buyers can bid for 46 shares in a single lot and in multiples thereafter.
Sanathan Textiles IPO: GMP as we speak
Forward of the difficulty opening, Sanathan Textiles was commanding a GMP of Rs 30, which signifies a premium of 9% over the difficulty value.
Sanathan Textiles IPO: Evaluation
Analysts suggested buyers to subscribe to the difficulty as the corporate because of its numerous product base and the expansion of the worldwide yarn business.
On the higher band firm is valuing at 20.2x its FY24 EPS. Following the IPO, the corporate’s market capitalization stands at Rs 2709 crore, with a market cap-to-sales ratio of 0.9 primarily based on its FY24 earnings.
“The worldwide yarn business and the demand for yarn merchandise are anticipated to develop within the coming years, pushed by the growing demand for attire from the style business and the speedy growth of e-commerce platforms. We consider that the difficulty is pretty priced and advocate Subscribe – Lengthy Time period score to the IPO,” stated Anand Rathi.
About Sanathan Textiles IPO
Sanathan Textiles is among the few firms (amongst their peer group) in India with presence throughout the polyester, cotton and technical textile sectors. Based mostly on their working earnings, they’d a market share of 1.7% within the total Indian textile yarn business as of FY24.
Presently, all of the three yarn verticals are housed underneath a single company entity. This has facilitated their diversification into new segments which in flip has helped them in serving many purchasers throughout numerous sectors.
As on September 2024, they’ve greater than 3,200 energetic forms of yarn merchandise and over 45,000 inventory holding models (SKUs), and functionality to fabricate a diversified product portfolio of greater than 14,000 forms of yarn merchandise and greater than 190,000 SKUs which might be utilized in numerous kinds and for various finish makes use of.
Sanathan Textiles IPO: Opening Date, Allotment and Itemizing Date
Sanathan Textiles IPO opened up for public subscription on December 19 with the difficulty closing on December 23. In the meantime, the allotment for the IPO is anticipated to be finalised on December 24 and the itemizing of shares will probably be on December 27.
(Disclaimer: Suggestions, solutions, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Instances)
