Sanathan Textiles Files Draft Papers With SEBI, Aims To Raise Rs 1,300-Crore Via IPO

Yarn producer Sanathan Textiles has filed preliminary paperwork with capital markets regulator SEBI to lift round Rs 1,300 crore via an preliminary public providing (IPO). The preliminary share-sale contains a contemporary situation 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 keeping with the draft purple herring prospectus (DRHP).The Mumbai-based firm may contemplate a pre-IPO placement of fairness shares aggregating as much as Rs 100 crore. According to information company PTI, the difficulty dimension shall be within the vary of Rs 1,200-1,300 crore.The proceeds from the contemporary issuance of shares shall be used to the extent of Rs 325 crore to repay debt, and Rs 65 crore for funding working capital necessities in addition to basic company functions.Incorporated 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 the years, 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 Financial Services and JM Financial are the guide operating lead managers to the difficulty. The shares of the corporate are proposed to be listed on the NSE and the BSE.