Sanathan Textiles refiles draft papers to raise Rs 800 crore via IPO

 

Sanathan

Yarn products manufacturer Sanathan Textiles has refiled preliminary papers with the capital markets regulator SEBI to raise Rs 800 crore via initial public offering.

The IPO is a mix of fresh issuance of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of shares worth Rs 300 crore by promoters.

Earlier, the company had filed draft papers with the SEBI in January 2022 for IPO which was comprised of a fresh issue of Rs 500 crore and an OFS of 1.14 crore equity shares by promoters. It was planning to raise around Rs 1,300 crore via IPO which has received approval from the regulator in May 2022 but could not proceed further.

Sanathan

As per the latest prospectus, the Mumbai-based company may consider raising funds up to Rs 100 crore in a pre-IPO placement, before filing the red herring prospectus with the Registrar of Companies.

This news indicates that Sanathan Textiles, a yarn manufacturer, has resubmitted its application to raise funds through an initial public offering (IPO) on the Indian stock market. Here’s a breakdown of the key points:

• IPO Size: The company aims to raise Rs 800 crore (approximately $9.6 billion) through the IPO.
• Draft Red Herring Prospectus (DRHP): This is the document companies file with the Securities and Exchange Board of India (SEBI) that details the IPO plans, including financials, usage of proceeds, and risk factors.
• Refiling: This suggests that Sanathan Textiles might have filed their initial DRHP earlier and it was not approved by SEBI. The reasons for refiling could be missing information, clarification requirements, or market conditions not being favorable at the time.
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Here are some possible implications:

Sanathan

• Fresh Start: The refiling indicates Sanathan Textiles’ continued interest in raising capital through an IPO. They’ve likely addressed any previous concerns raised by SEBI.
• Market Conditions: The company might be looking to capitalize on a more favorable market environment compared to their initial filing.

What to watch for next:

• SEBI Approval: Sanathan Textiles needs approval from SEBI before they can launch the IPO. The timeframe for approval can vary depending on the complexity of the application.
• IPO Details: Once approved, the company will release a detailed prospectus outlining the IPO timeline, share price range, and other relevant information for potential investors.

It’s important to note:

• This news is just an announcement, and the actual IPO might not happen.
• Before investing in any IPO, it’s crucial to thoroughly research the company’s financials, business model, and risk factors. You can find more details in the prospectus once it’s released.