Sanathan Textiles IPO - Day 1 Subscription at 0.10 Times

On its opening day, Sanathan Textiles' initial public offering has shown a measured start, with overall subscription reaching 0.10 times by 11:10 AM on December 19, 2024. This initial response reflects the market's careful evaluation of one of India's prominent polyester and cotton yarn manufacturers, particularly notable given the company's extensive product portfolio of over 3,200 active yarn varieties.

Sanathan Textiles IPO early hours have witnessed a gradual build-up of investor interest, with the retail segment leading at 0.19 times subscription. The Non-Institutional Investors have shown selective early participation at 0.04 times, with smaller NIIs demonstrating relatively stronger interest at 0.09 times compared to larger NIIs at 0.02 times. The QIB portion is yet to see participation, though this is typical for institutional investors who often take a measured approach during the initial hours of subscription.

Subscription Status of Sanathan Textiles IPO:

*As of 11:10 AM

Here are the subscription details for Sanathan Textiles IPO as of Day 1 (19th December 2024, 11:10 AM):
 

Total Applications: 24,002

Key Highlights:

• Overall subscription began at 0.10 times, showing measured initial market response
• Retail investors demonstrated early interest with 0.19 times subscription, worth ₹36.361 crores
• NII category started with 0.04 times subscription, with stronger sNII participation
• Strong anchor book of ₹165.000 crores provides solid foundation
• Total bids received for 12.40 lakh shares worth ₹39.821 crores
• Applications reached 24,002, indicating initial market interest
• Opening day response reflects methodical evaluation of textile sector
• Early subscription pattern suggests careful assessment of growth prospects

About Sanathan Textiles Limited:

Established in 2005, Sanathan Textiles Limited has evolved into a diversified yarn manufacturer with a unique position in India's textile sector. The company operates through three distinct yarn business verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses. This comprehensive approach allows them to serve various sectors including automotive, healthcare, construction, and protective clothing.

The company's manufacturing capabilities are impressive, with over 3,200 active yarn varieties and more than 45,000 SKUs as of September 2024. Their potential to manufacture more than 14,000 varieties of yarn products and 190,000 SKUs demonstrates exceptional production flexibility. Operating from their manufacturing facility in Silvassa, the company maintains a strong global presence, exporting to 14 countries and working with over 925 distributors across 7 countries including India, Argentina, Singapore, Germany, Greece, Canada, and Israel.

Despite facing industry headwinds with an 11% revenue decrease between FY2023 and FY2024, the company's strategic positioning across multiple yarn segments and their focus on product development through process innovation positions them well for future growth opportunities in the textile sector.

Highlights of the Sanathan Textiles IPO:

• IPO type: Book Built Issue
• IPO size: ₹550.00 crores
• Fresh Issue: ₹400.00 crores
• Offer for Sale: ₹150.00 crores
• Face value: ₹10 per share
• Price band: ₹305 to ₹321 per share
• Lot size: 46 shares
• Minimum investment for retail investors: ₹14,766
• Minimum investment for sNII: ₹2,06,724 (14 lots)
• Minimum investment for bNII: ₹10,04,088 (68 lots)
• Listing at: BSE, NSE
• IPO opens: December 19, 2024
• IPO closes: December 23, 2024
• Allotment date: December 24, 2024
• Refund initiation: December 26, 2024
• Credit of shares: December 26, 2024
• Listing date: December 27, 2024
• Lead Managers: Dam Capital Advisors Ltd, ICICI Securities Limited
• Registrar: Kfin Technologies Limited

The initial day's subscription pattern suggests a thoughtful market approach to evaluating Sanathan Textiles' diversified product portfolio, manufacturing capabilities, and potential to benefit from India's growing focus on the textile sector, particularly in light of the PLI scheme.