Company Profile
Sanathan Textiles Limited operates in three primary yarn business segments:
- Polyester Yarn Products
- Cotton Yarn Products
- Technical Textiles and Industrial Application Yarns
The company distinguishes itself by offering products across polyester, cotton, and technical textile categories, catering to a variety of end-use industries, including automotive, healthcare, construction, sports, outdoor gear, and protective clothing.
As of June 30, 2024, its Silvassa facility has an installed capacity of 223,750 MTPA across these three segments. By September 30, 2024, the company had developed over 3,200 active yarn varieties and 45,000 SKUs, with the potential to produce over 14,000 yarn types and 190,000 SKUs for various applications.
Sanathan Textiles serves a global market, with a network of more than 925 distributors spanning seven countries, including India, Argentina, Singapore, Germany, Greece, Canada, and Israel. Its value-added product portfolio includes dope-dyed, superfine, micro, functional, industrial, and technical yarns, as well as specialty yarns such as cationic dyeable varieties, all supported by advanced in-house R&D capabilities.
Objectives of the Issue
The IPO comprises both a fresh issue and an offer for sale. The company will not receive any proceeds from the offer for sale. Funds raised through the fresh issue are allocated for the following purposes:
- Debt Reduction: Repayment or prepayment, in full or part, of certain borrowings availed by the company.
- Subsidiary Investment: Infusion of funds into Sanathan Polycot Pvt Ltd for repayment or prepayment of specific borrowings.
- General Corporate Expenses: Allocation of funds for operational and strategic needs.
Summary of Financial Information:
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 2,529.53 | 2,203.68 | 1,906.67 | 1,796.47 |
| Revenue | 787.76 | 2,979.80 | 3,345.02 | 3,201.46 |
| Profit After Tax | 50.07 | 133.85 | 152.74 | 355.44 |
| Net Worth | 1,324.06 | 1,273.98 | 1,140.13 | 987.39 |
| Total Borrowing | 644.93 | 379.88 | 281.00 | 378.19 |
Comparison with Listed Peers:
| Company Name | P/E | P/B | RoE (%)* |
|---|---|---|---|
| Sanathan Textiles Ltd | 12 | 2 | 11 |
| K.P.R. Mill Ltd | 46 | 8 | 20 |
| Vardhman Textiles Ltd | 20 | 2 | 7 |
| Indo Count Industries Ltd | 26 | 4 | 17 |
| Filatex India Ltd | 26 | 2 | 10 |
| Garware Technical Fibres Ltd | 42 | 8 | 19 |
Key IPO Details:
- IPO Dates: 19 to 23 December, 2024
- Price Band: Rs. 305 to Rs. 321 per share
- Lot Size: 46 shares
- Issue Size: Rs. 550 Crores (Fresh Issue: 400 Cr.)
- Retail Quota: 35%
- Listing Date: 27th Dec, 2024
- GMP: 10%+ (for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
