Sanathan Textiles plans to raise Rs 1,300 cr via IPO
Hyderabad SANATHAN Textiles has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The issue size will be in the range of Rs 1,200-1,300 crore.
The yarn manufacturer plans to raise Rs 500 crore via fresh issue of equity shares and there will be an offer for sale of up to 1,14,00,000 equity shares by the promoters. Additionally, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore.
The company will use fresh issuance of shares to extent of Rs 325 crore to repay/prepay in full or part, of certain borrowings availed by the company, Rs 65 crore for funding working capital requirements besides general corporate purposes.
Its business is divided into three separate yarn business verticals, consisting of polyester yarn products; cotton yarn products; and yarns for technical textiles and industrial uses, manufactured at its Silvassa facility.