Sanathan Textiles IPO day 2: Check subscription status, GMP & other details

The initial public offer (IPO) of Sanathan Textiles, which opened for public subscription on Thursday, December 19, 2024, has received a muted response from investors so far. As of 12:51 PM on Friday, December 20, 2024, the public offer has garnered a total bid of 1,08,92,432 shares against the offer of 1,26,22,950 shares, resulting in a subscription of 0.86 times, according to data available on the National Stock Exchange (NSE). 

NSE data revealed that the Retail Individual Investors(RIIs) showed the most interest by subscribing to Sanathan Textiles IPO by 1.4 times with a bid of 88,25,652 shares, Non Institutional Investors (NIIs) subscribed 0.76 times, bidding 20,65,492 shares. The IPO price band is set at Rs 305 to Rs 321 per share.

 

 

In the grey market, the unlisted shares of Sanathan Textiles were trading at Rs 391 apiece, as per sources, commanding a grey market premium (GMP) of 21.81 per cent or Rs 70 per share, over the upper end of the IPO price band of Rs 321 per share.

 

Sanathan Textiles IPO is a book-built issue of Rs 550 crore with a combined issue of 12.5 million shares aggregating to Rs 400 crore and an offer for sale (OFS) of 4.7 million shares aggregating to Rs 150 crore. 

 

The basis for the allotment of Sanathan Textiles IPO shares is expected to be concluded on Tuesday, December 24, 2024, with shares credited to investors' demat accounts by Thursday, December 26, 2024. Shares of Sanathan Textiles will tentatively list on the bourses on Friday, December 27, 2024.

 

KFin Technologies is the registrar for the IPO and the book-running lead managers for the public issue including Dam Capital Advisors Ltd and ICICI Securities.

 

The company plans to utilise the proceeds to repay certain borrowings availed by the company and its subsidiary Sanathan Polycot Private Limited, investment in Sanathan Polycot, and general corporate purposes.

 

About Sanathan Textiles

Sanathan Textiles is a polyester yarn manufacturer and a global supplier of cotton yarn. The company's business is divided into three separate yarn business verticals, consisting of Polyester yarn products, cotton yarn products, and yarns for technical textiles and industrial uses. These technical textiles are used in various sectors such as automotive, healthcare, construction, sports and outdoor activities, and protective clothing.