Sanathan Textiles IPO - Day 2 Subscription at 0.74 Times

The second day of Sanathan Textiles' initial public offering has shown steady improvement, with overall subscription reaching 0.74 times by 11:08 AM on December 20, 2024, up from 0.48 times on day one. This measured progress demonstrates growing investor interest in the company's integrated yarn manufacturing capabilities across polyester, cotton, and technical textile segments.

Sanathan Textiles IPO subscription pattern reveals strengthening retail investor confidence, with this segment now exceeding full subscription at 1.22 times, showing significant improvement from 0.82 times on day one. The Non-Institutional Investors have also demonstrated increased participation at 0.62 times, with particularly strong interest from smaller NIIs at 1.25 times subscription. The QIB portion is yet to see significant participation, though this should be viewed in context of the substantial anchor book of ₹165 crores providing institutional backing.

Subscription Status of Sanathan Textiles IPO:

*As of 11:08 AM

Here are the subscription details for Sanathan Textiles IPO as of Day 2 (20th December 2024, 11:08 AM):

Total Applications: 1,73,022

Key Highlights Day 2:

• Overall subscription improved to 0.74 times, showing steady progress
• Retail investors crossed full subscription at 1.22 times, worth ₹235.076 crores
• NII category almost doubled to 0.62 times, with strong sNII participation at 1.25 times
• Total bids received for 89.11 lakh shares worth ₹286.072 crores
• Applications increased to 1,73,022, indicating growing investor interest
• Second day response shows building momentum in market confidence
• Subscription pattern suggests increasing appreciation for company's diverse product portfolio
• Strong retail participation reflects confidence in textile sector growth prospects

Sanathan Textiles IPO - Day 1 Subscription at 0.48 Times

Key Highlights Day 1:

• Overall subscription began at 0.48 times, reflecting measured initial assessment
• Retail investors showed encouraging interest with 0.82 times subscription
• NII category started with 0.33 times subscription, with stronger sNII participation
• Strong anchor book of ₹165 crores provided institutional backing
• Total bids received for 57.65 lakh shares worth ₹185.075 crores
• Opening day response indicated methodical market evaluation
• Initial subscription trend suggested careful assessment of textile sector prospects
• Day one established foundation for building momentum

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.