Yarn producer Sanathan Textiles has filed preliminary paperwork with capital markets regulator SEBI to boost round Rs 1,300 crore by way of an preliminary public providing (IPO). The preliminary share-sale includes a recent concern of fairness shares aggregating as much as Rs 500 crore and an offer-for-sale of as much as 1.14 crore fairness shares, in accordance with the draft pink herring prospectus (DRHP).
The Mumbai-based firm may contemplate a pre-IPO placement of fairness shares aggregating as much as Rs 100 crore. In keeping with news company PTI, the problem measurement will probably be within the vary of Rs 1,200-1,300 crore.
The proceeds from the recent issuance of shares will probably be used to the extent of Rs 325 crore to repay debt, and Rs 65 crore for funding working capital necessities apart from basic company functions.
Integrated in 2005, Sanathan Textiles’ enterprise is split into three separate yarn enterprise verticals, consisting of polyester yarn merchandise; cotton yarn merchandise; and yarns for technical textiles and industrial makes use of, manufactured at its Silvassa facility.
Over time, the corporate has scaled up its yarn manufacturing with a complete capability from 4,500 metric tonnes each year (MTPA) in 2006 to 221,050 MTPA in 2021.
Sanathan Textiles registered a revenue of Rs 185.63 crore and income of Rs 1,918.36 crore for FY21. It clocked a revenue of Rs 170.78 crore and income of Rs 1,438.88 crore for the six month ended September 2021.
Edelweiss Monetary Companies and JM Monetary are the guide working lead managers to the problem. The shares of the corporate are proposed to be listed on the NSE and the BSE.