Sanathan Textiles Weaves IPO Success Story: Rs 165 Crore Raised from Anchor Investors

Yarn manufacturer Sanathan Textiles raised Rs 165 crore from anchor investors before its IPO, opening December 19. The Rs 550-crore IPO includes a fresh issue of up to Rs 400 crore and an Offer For Sale of Rs 150 crore. Funds will repay debts and invest in a subsidiary.

Sanathan Textiles, a prominent player in the yarn manufacturing sector, announced on Wednesday its successful mobilization of Rs 165 crore from anchor investors ahead of its initial public offering (IPO).

Among the key anchor investors are SBI Mutual Fund, Nippon India MF, HDFC MF, Kotak MF, and Bandhan MF, which acquired shares alongside other notable entities such as Societe Generale and PineBridge Global Funds. The shares, pegged at Rs 321 each, mark the upper limit of the price band.

The Rs 550-crore IPO, opening December 19, mixes a fresh issue of equity shares worth Rs 400 crore and a Rs 150 crore Offer For Sale by promoters. The proceeds aim to relieve Rs 160 crore of company debt, invest Rs 140 crore in the subsidiary Sanathan Polycot Pvt Ltd, and support general expenses.

(With inputs from agencies.)