Sanathan Textiles files draft IPO papers with Sebi
Yarn manufacturing business Sanathan Textiles has filed its draft initial public offering with market regulator Sebi as it targets an issue size of between Rs 1,200 crore ($180.4 million) to Rs 1,300 crore.
Sanathan Textiles plans to raise Rs 500 crore through a fresh issue of equity shares as part of the IPO, according to its draft red herring prospectus. The business’ promoters will also run an offer for sale of up to 11,400,000 equity shares, ET Markets reported. The issue’s book running lead managers are Edelweiss Financial Services and JM Financial.
The Mumbai-based business is also considering a pre-IPO placement of equity shares which could aggregate up to a value of Rs 100 crore. Part of the proceeds from the fresh issuance of shares will be used to repay borrowings by the business and a smaller amount will be used for its working capital requirements as well as for general business purposes.
In the 2021 financial year, Sanathan Textiles reported a revenue total of Rs 1,918.36 crore with a profit of Rs 185.63 crore. The business manufactures a range of eco-friendly textiles and yarns as well as textiles used to make everything from PPE to home furnishings, according to its website. According to the business, its business customers include Welspun India and Arvind, among others.
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