Sanathan Textiles IPO Anchor Allocation at 30%

Sanathan Textiles IPO saw a significant anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of the 171,33,956 shares on offer, anchors picked up 51,40,186 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on December 18, 2024, just ahead of the IPO opening on December 19, 2024.

The book-built issue of ₹550.00 crores comprises a fresh issue of 124,61,060 shares aggregating to ₹400.00 crores and an offer for sale of 46,72,898 shares aggregating to ₹150.00 crores. The price band is set at ₹305 to ₹321 per share, with a face value of ₹10 per share. This includes a share premium of ₹311 per share at the upper end of the price band.

The anchor allocation process, which took place on December 18, 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹321 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the IPO looks as follows:

The lock-in period for anchor investors is an important aspect of the allocation. For Sanathan Textiles IPO, the lock-in details are as follows: 
 

• Lock-in Period (50% Shares): January 23, 2025 
• Lock-in Period (Remaining Shares): March 24, 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilizing the stock price after listing.

Anchor Investors in Sanathan Textiles IPO

Anchor investors, primarily large institutional investors, are allotted shares in an IPO before it opens to the public. This process plays a pivotal role in price discovery and boosts retail investor confidence. The strong response from anchor investors often sets a positive tone for the public issue.

On December 18, 2024, Sanathan Textiles IPO completed its anchor allocation bidding. A total of 5,140,186 shares were allotted to 19 anchor investors at ₹321 per share, resulting in an overall anchor allocation of ₹165.00 crores. Out of this, 74.25% (3,816,344 shares) were allocated to nine domestic mutual funds through 14 schemes.

Key IPO Details:

• IPO Size: ₹550.00 crores
• Shares Allocated to Anchors: 5,140,186
• Anchor Subscription Percentage: 30%
• Listing Date: December 27, 2024
• IPO Opening Date: December 19, 2024

About Sanathan Textiles Limited and How to Apply for Sanathan Textiles IPO

Sanathan Textiles Limited, incorporated in 2005, is a leading manufacturer of polyester yarn and a global supplier of cotton yarn. The company operates through three main business verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial applications. These technical textiles serve a wide range of industries, including automotive, healthcare, construction, sports, and protective clothing. As of June 30, 2024, Sanathan Textiles had over 3,200 active varieties of yarn products and more than 45,000 stock-keeping units (SKUs), showcasing its ability to cater to diverse customer needs. The company exports to 14 countries and has a strong distribution network with over 925 distributors worldwide, including regions such as India, Argentina, Singapore, Germany, Greece, Canada, and Israel. Its manufacturing unit, located in Silvassa, is fully integrated and equipped with advanced technology, enabling efficient production processes. With an experienced management team and a focus on innovation, sustainability, and energy efficiency, Sanathan Textiles is well-positioned to maintain its leadership in the textile industry.

To apply for the Sanathan Textiles IPO, investors can place bids within the price band of ₹305 to ₹321 per share. The IPO opens for subscription on December 19, 2024, and closes on December 23, 2024. Retail investors can apply for a minimum lot size of 46 shares, with the application process facilitated through stockbrokers or online trading platforms. Ensure all necessary UPI mandates are approved before the cut-off time to secure your application successfully.