Sanathan Textiles IPO

Sanathan Textiles Limited is among India’s few enterprises with a foothold in the polyester, cotton, and technical textile industries. (According to the CRISIL report.) The three yarn segments are all placed under the same corporate umbrella. Sanathan Textiles IPO will hit the stock market in May 2021.

About Sanathan Textiles

They have a wide product portfolio as of September 30, 2021, with the potential to make over 12,900 kinds of yarn goods with over 100,000 SKUs that are utilised in numerous forms and for numerous end purposes.

They have a large percentage of value-added products, with 52.16 percent, 51.31 percent, 41.97 percent, and 39.37 percent, respectively, of overall revenue from value-added products for the six-month period ending September 30, 2021, Fiscals 2021, 2020, and 2019.

They feel that as a result, their firm’s EBITDA margins have improved. Polyester yarn goods, Cotton yarn products, and Yarns for technical textiles and industrial purposes are the three yarn business verticals in which they operate.

Production Plant

Their Silvassa factory is where their items are made. Their Company has grown its manufacturing capacity throughout the years, and as of September 30, 2021, it has a maximum output of 221,050 MTPA over the 3 yarn verticals.

Polyester chips are made from purified terephthalic acid and monoethylene glycol, and the chips are then converted into polyester yarn via different intermediary processing steps to provide the yarn certain qualities.

This has aided their expansion into new categories, allowing them to serve a larger number of consumers across a variety of industries.

They are a firm that is concerned about the environment and promotes the use of renewable energy sources.

Export

For the six months ended September 30, 2021, and for Fiscals 2021, 2020, and 2019, respectively, exports contributed for 12.36 percent, 12.61 percent, 18.18 percent, and 16.98 percent of Sales from Operations.

Their company shipped its items to more than 41 nations in Fiscal 2021, with Argentina, South Korea, Brazil, and Turkey accounting for more than half of the income from export sales.

Since of their worldwide distribution strategy, they are able to conduct large-scale export sales. They have over 295 distributors in over 37 countries, including India, as of September 30, 2021.

They think that a worldwide distribution network is critical for good supply-chain management and that it reduces risks associated with geographic concentration.

Sanathan Textiles IPO

Sanathan Textiles Limited, headquartered in Kachchh has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 500 crore and 11,400,000 equity shares on 06 January 2022.

The offer includes a fresh issue of INR 500 crore and there is offer for sale (OFS) of 11,400,000 equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of INR 100 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1,772.63	1,641.99	1,452.11	1,344.58
Total Revenue	1,438.88	1,932.97	2,123.50	2,346.53
Profit After Tax	170.78	185.63	46.02	55.23

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	25.80	25.80	3
Financial Year 2020	6.40	6.40	2
Financial Year 2019	7.68	7.68	1
Weighted Average	16.31	16.31
30 Jun. 2021	23.75	23.75

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The essential business strengths, they feel, enable them to compete effectively in the sector.

1. They are among India’s few enterprises with a foothold in the polyester, cotton, and technical textile industries.
2. Concentrate on innovative product development via R&D and process innovation.
3. A completely integrated yarn production plant has been established in a strategic position to serve worldwide suppliers.
4. With a low client concentration and a long history of affiliation with key retail brands.
5. Deep expertise and awareness of the ideal product selection, as well as a strong supplier network, allow for predictable and competitive procurement, resulting in an overall efficient cycle.
6. Financially sound performance.
7. Professional leadership team with a track record of success.

Sanathan Textiles IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	1	K.P.R. Mill Limited	46.06
2	10	Vardhman Textiles Limited	34.55
3	2	Indo Count Industries Limited	20.08
4	2	Filatex India Limited	13.01
5	10	Garware Technical Fibres Limited	43.73

Note

1. On January 3, 2022, the closing NSE price of these equity shares was retrieved from the NSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Sanathan Textiles IPO Details

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	500 Crore
Offer for Sale	11,400,000 equity shares

Sanathan Textiles IPO Date

Sanathan Textiles IPO opening date is May 2021, and the closing date is May 2021. The Sanathan Textiles issue may list in May 2021.

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Basis of Allotment Date	May 2021
Initiation of Refunds	May 2021
Credit of Shares to Demat Account	May 2021
IPO Listing Date	May 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Sanathan Textiles Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Sanathan IPO.

Sanathan Textiles IPO GMP

Sanathan Textiles IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
May 2021
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Sanathan Textiles IPO Review

Sanathan Textiles IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Sanathan Textiles IPO is good or bad.

Sanathan Textiles Limited IPO Risk

• The COVID-19 epidemic may likely to have a significant influence on their business.
• Certain processes involving their Firm, Subsidiaries, Promoters, Directors, and Group Company may have a negative impact on their company if they are found guilty.
• They rely extensively on technology to carry out their commercial operations, and it is a vital element of their operations.
• Their logo isn’t a registered trademark, thus they might not be able to appropriately defend their trademarks.
• The bulk of their consumers do not have long-term contracts with them.
• Poor storage, manufacturing, and handling of raw materials and finished goods can lead to inventory damage, which can have a negative impact on a company’s bottom line.

Other Threats

• Their Firm may accrue more debt in the course of operations, in addition to the existing debt.
• Their failure to obtain or renew the appropriate licences, permissions, and registrations in a timely or timely way, or at all, may cause their Firm’s activities to be disrupted.
• They export their goods to a variety of nations, where they may face high import tariffs or limitations.
• They may need to look for extra funding in the future to fund their expansion plans.
• Their business may suffer if they fail to successfully manage, advertise, and strengthen their brand.
• They have some contingent liabilities, and if any of these obligations materialise, their financial health and earnings may suffer.

Business model

They have a diverse product range, and they use their extensive understanding of the areas in which they trade to tailor their product offerings to meet local wants and preferences.

They also work hard to improve the quality of the things they make. They also have a large network of suppliers around worldwide, and they attempt to acquire their items from locations where they are widely available or made in order to keep their procurement prices low.

Their facility features an inventory and receivables system, resulting in a sustainable working capital cycle. They use a structured procurement method and buy most of their items on a purchase-order basis, which allows them to be more flexible while yet maintaining competitive pricing.

Sanathan Textiles Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Sanathan IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
May 2021	1
May 2021	2
May 2021	3

Management

They credit their success to their Promoters and senior leadership team’s experience. Their promoters have a combined textile industry expertise of over 100 years, including more than 40 years in the yarn sector.

Pareshkumar Dattani, their Promoter, Chairman, and Managing Director, has over 42 years of expertise in the textiles sector and has been accountable for strengthening partnerships with many stakeholders, which has helped their business grow by continuously expanding its product line.

Ajaykumar Dattani, their Joint Managing Director and Promoter, and our Promoters, Anilkumar Dattani and Dineshkumar Dattani, all have extensive expertise in the textile sector, which has assisted their Firm’s overall growth.

Promoters

• Nimbus Trust
• D&G Family Trust
• A&J Family Trust
• P&B Family Trust
• Pareshkumar Dattani
• Ajaykumar Dattani
• Anilkumar Dattani
• Dineshkumar Dattani

Promoter’s Holding

Pre Issue Share Holding	97.54%
Post Issue Share Holding

Sanathan IPO Prospectus