Sanathan Textiles, a yarn products manufacturer, has refiled its initial documents with SEBI for the third time, aiming to raise Rs. 800 cr through an initial public offering (IPO). The IPO will consist of a new issuance of equity shares valued at Rs. 500 cr and an offer-for-sale of Rs. 300 cr by promoters.
The company initially filed its draft papers with SEBI for the IPO in January 2022 and received approval in May 2022, but did not proceed with the launch. In April 2024, it refiled for the IPO to raise Rs. 800 cr, but SEBI returned the documents on July 31.
Sanathan Textiles may seek to raise Rs. 100 cr in a pre-IPO placement before filing the Red Herring Prospectus with the Registrar of Companies (ROC). If this amount is raised, it will be deducted from the fresh issue portion.
The company plans to use Rs. 375 cr of the net proceeds from the fresh issue to repay debt, with the leftover funds allocated for general corporate purposes. Sanathan Textiles offers over 2,800 active yarn varieties and more than 30,000 stock keeping units (SKUs). ICICI Securities and DAM Capital Advisors are the book-running lead managers for the issue.
