Sanathan Textiles Limited has gained significant attention in the stock market due to its recent Initial Public Offering (IPO). In this article, we will explore the latest updates, subscription status, grey market premium (GMP), and crucial details about the IPO. Let’s dive into what makes Sanathan Textiles IPO a noteworthy event for investors.
What is Sanathan Textiles IPO?
The Sanathan Textiles IPO opened for subscription on December 19, 2023, and closed on December 23, 2023. This ₹550 crore IPO consists of two key components:
- Fresh Equity Issue: ₹400 crore worth of fresh shares.
- Offer for Sale (OFS): 46.72 lakh shares valued at ₹150 crore.
The IPO was launched to support the company’s growth initiatives, including debt repayment and investment in its subsidiary, Sanathan Polycot Private Ltd.
IPO Subscription Details
Sanathan Textiles IPO experienced robust demand across all investor categories. Here’s a breakdown of the subscription figures by the end of Day 3:
- Retail Investors: Subscribed 8.84 times, reflecting strong interest from individual investors.
- Non-Institutional Investors (NIIs): Subscribed a staggering 42.18 times.
- Qualified Institutional Buyers (QIBs): Oversubscribed by 75.62 times.
Overall, the IPO was subscribed 35.07 times, marking a significant success in terms of demand.
Sanathan Textiles IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Sanathan Textiles IPO has been a topic of discussion among market analysts. Initially priced at ₹21, the GMP dropped to around ₹12.46 due to market volatility. This fluctuation highlights the cautious sentiment among investors.
Expected Returns from Sanathan Textiles IPO
If you were allotted a single lot of 46 shares, the potential profit from listing gains is estimated at ₹1,184. While this may seem modest, the IPO’s overall performance and demand showcase its long-term potential.
How to Check IPO Allotment Status?
Investors can check the allotment status for Sanathan Textiles IPO using the following platforms:
On NSE Website
- Visit the NSE IPO Allotment Page.
- Log in with your credentials or register if you are a new user.
- Select “Sanathan Textiles IPO” from the dropdown menu.
- Enter your application number and PAN details.
- Click “Submit” to view your allotment status.
On KFin Technologies Website
- Visit the KFin Technologies Allotment Page.
- Select “Sanathan Textiles IPO” from the dropdown menu.
- Enter your application number, Demat account details, or PAN.
- Complete the Captcha verification.
- Click “Submit” to check the status.
Sanathan Textiles IPO Listing Date
Sanathan Textiles shares are scheduled to list on both BSE and NSE on December 27, 2023. Investors can expect further updates regarding share price performance on the listing day.
Price Band and Lot Size
The IPO price band was set between ₹305 and ₹321 per share. Retail investors could apply for a minimum lot size of 46 shares, amounting to ₹14,766. For High Net Worth Individuals (HNIs), the application sizes ranged as follows:
- Small HNIs: 644 shares (₹2,06,724).
- Big HNIs: 3,128 shares (₹10,04,088).
Purpose of the IPO
The funds raised through the IPO will be utilized for:
- Repayment or prepayment of debt: Reducing the financial burden of the company.
- Investment in Sanathan Polycot Private Ltd: Strengthening the subsidiary’s operations.
- General corporate purposes: Enhancing overall business growth and expansion.
About Sanathan Textiles
Founded in 2005, Sanathan Textiles is a leading player in the polyester and cotton yarn market. The company also manufactures yarns used in technical textiles and industrial applications. It operates a state-of-the-art manufacturing facility in Silvassa, catering to prominent clients like Welspun India, Valson Industries, GM Fabrics, and Premco Global.
Key Takeaways for Investors
- Strong Demand: The IPO’s 35x oversubscription showcases high investor interest.
- Moderate GMP: The fluctuating grey market premium indicates cautious optimism.
- Risk vs. Reward: While the IPO has potential for listing gains, market volatility may pose risks.
Final Thoughts
Sanathan Textiles IPO represents an intriguing opportunity for investors, especially those with a higher risk tolerance. The company’s strong presence in the textile industry and plans for debt reduction make it a viable long-term investment. However, cautious investors may want to analyze market conditions before committing.
Whether you’re a seasoned investor or a first-time applicant, Sanathan Textiles IPO offers both challenges and opportunities. Stay informed and make your investment decisions wisely!