Yarn Producer Sanathan Textiles To Raise Rs 800 Crore Via IPO
Yarn manufacturer Sanathan Textiles has filed preliminary papers with capital markets regulator Sebi to raise Rs 800 crore through an initial public offering (IPO).
According to the Draft Red Herring Prospectus (DRHP), the IPO is a combination of a fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale (OFS) of up to Rs 300 crore by promoters and promoter group entities.
In January 2022, the company filed IPO draft papers to SEBI, which comprised of a fresh issue of Rs 500 crore and an OFS of 1.14 crore equity shares by promoters. SEBI approved the IPO in May 2022 to raise about Rs 1,300 crore, but progress halted afterward.
Sanathan Textiles may also consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore and if such placement is undertaken then the size of the fresh issue will be reduced.
The Mumbai based company which manufacturers cotton, polyester and industrial yarns will use the proceeds from the fresh issue of shares amounting to Rs 210 crore for investment in its subsidiary, Sanathan Polycot.
The investment in Sanathan Polycot will be used for funding its long-term working capital requirements, while Rs 175 crore will be for repayment of debt and general corporate purposes.
