By the fiscal year 2027, Sanathan Textiles Ltd. hopes to have more than doubled its capacity to produce yarn, from the present 2.23 lakh tonnes annually to over 5 lakh tonnes.
The yarn manufacturer is gearing up for its initial public offering, with proceeds set to bolster its growth and debt reduction strategy. The Rs 550-crore IPO comprises both an offer-for-sale component, as well as a fresh issue of shares. The company will offload shares worth Rs 150 crore through the offer for sale and will issue fresh shares worth Rs 400 crore. The maiden issue will launch its public offering on 19 at a price band of Rs.305-321 per share .
In an interview with NDTV Profit, chairman and managing director Paresh Dattani stated, “We are the only company in the country to have three verticals of yarns—polyester, cotton, and technical textiles—at one location.” The business plans to utilise the issue’s proceeds for investments, general business needs, and loan repayment.
In addition to investing in the subsidiary, Sanathan Polycot Pvt., the business plans to use the proceeds of the issuance for general corporate objectives and loan repayment.
According to Sammir Dattani, executive director of Sanathan Textiles, the firm now produces 2.23 lakh tonnes annually in three verticals: 9,000 tonnes of technical textiles, 14,000 tonnes of cotton yarn, and 2 lakh tonnes of polyester yarn.
According to Dattani, total yarn manufacturing capacity would increase from the current 2.23 lakh tonnes annually to around 5 lakh tonnes by FY27. An important part of the growth will be the company’s new factory in Punjab, which is scheduled to open in 2025. We want to produce 2.5 lakh tonnes of polyester film yarn a year in Phase 1. Our capacity for polyester will more than treble as a result.
The IPO’s book-running lead managers are DAM Capital Advisors Ltd. and ICICI Securities Ltd., while the issue’s registrar is KFin Technologies Ltd.