New Delhi: Shares of yarn manufacturer Sanathan Textiles Ltd listed with a premium of over 31 per cent against the issue price of Rs 321 on Friday. The stock started the trade at Rs 419.10, up 30.56 per cent from the issue price on the BSE. It later surged 31.66 per cent to Rs 422.65. At the NSE, it listed at Rs 422.30, rallying 31.55 per cent. The company's market valuation stood at Rs 3,346.20 crore.
Sanathan Textiles' initial public offering garnered 35.12 times subscription on the last day of bidding on Monday. The initial share sale had a price band of Rs 305-321 per share. The company's Rs 550-crore IPO had a combination of a fresh issue of equity shares aggregating up to Rs 400 crore and an Offer-for-Sale (OFS) of shares valued at Rs 150 crore by promoters and promoter group entities.
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The company plans to utilise proceeds from its fresh issue worth Rs 160 crore for payment of debt, while Rs 140 crore will be invested in its subsidiary, Sanathan Polycot Pvt Ltd, for the repayment or prepayment of its borrowings, and the rest will be allocated for general corporate purposes. Sanathan Textiles operates three distinct yarn business divisions - polyester yarns, cotton yarns, and yarns -- for technical textiles and industrial applications. These divisions are managed under a single corporate entity.
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