Sanathan Textiles IPO Day 2: Check Review, Subscription Status And GMP

The Sanathan Textiles IPO, which opened for subscriptions on December 19, has received a robust response from investors by the second day of bidding. Currently, the issue has been subscribed 1.31 times, particularly with strong interest from retail investors.

The IPO has set a price band ranging from ₹305 to ₹321 per share. The minimum lot size for application stands at 46 shares, requiring a minimum investment of ₹14,766 from retail investors. For small and medium non-institutional investors (sNII), the minimum lot size is 14 lots (644 shares), amounting to ₹2,06,724, while for big non-institutional investors (bNII), it is 68 lots (3,128 shares), totalling ₹10,04,088.

As for the grey market premium (GMP) today, Sanathan Textiles' IPO remains stable. As of December 20, 2024, at 2:00 PM, the latest GMP is ₹70. This suggests a projected listing price of ₹391 (cap price plus today’s GMP), indicating an anticipated gain of about 21.81% per share based on the upper end of the price band.

Analysts have given a favourable review of the Sanathan Textiles IPO, citing the company's solid financial performance and promising growth prospects as compelling reasons to consider this investment opportunity.

According to Dilip Davda, "The company operates in the polyester, cotton, and technical yarn sectors, essentially covering all aspects of yarn manufacturing in one place. Despite facing a decline in FY24 in line with industry trends, the IPO seems fairly priced based on annualised earnings for FY25. Investors might consider holding onto this investment long-term, especially given the growing interest in the textile sector following the announcement of the Production Linked Incentive (PLI) scheme."

As of 16:14 on the second day, the public issue has been subscribed 2.07 times in the retail category, has not yet seen subscriptions in the Qualified Institutional Buyer (QIB) category, and is at 1.27 times in the Non-Institutional Investor (NII) category.