Upcoming IPO: Sanathan Textiles, Rubicon Research get SEBI nod to launch IPOs

Upcoming IPO: Sanathan Textiles Ltd and Rubicon Research Ltd have received final observations from the Securities and Exchange Board of India (SEBI), allowing them to raise funds through an initial public offering (IPO). Sanathan Textiles refiled its IPO documents with SEBI on August 20, 2024, while Rubicon Research filed draft papers on August 1, 2024.

Sanathan Textiles stands out as one of the few companies in India with operations across the polyester, cotton, and technical textile sectors. The company has three separate divisions focused on yarn production: polyester yarns, cotton yarns, and yarns aimed at technical textiles and industrial uses. Currently, these divisions are overseen under a unified corporate structure.

The firm focuses on producing value-added yarn products, which include dope-dyed, superfine/micro, functional, industrial, and technical yarns, as well as cationic dyeable and specialty yarns.

By June 30, 2024, Sanathan Textiles had over 2,800 active yarn product varieties and held more than 30,000 stock-keeping units (SKUs).

Sanathan Textiles IPO details

The IPO includes a fresh equity share issue worth up to ₹500 crore, along with an offer for sale (OFS) of up to ₹300 crore from the Promoters and Promoter Group.

From ₹500 crore raised via fresh issue, ₹160 crore will be allocated for the repayment or pre-payment, either partially or fully, of certain existing borrowings taken by the Company, and ₹215 crore for investing in its subsidiary, Sanathan Polycot Private Limited, to support its long-term working capital needs. The company will also use the proceeds for general corporate purposes.

The book-running lead managers for the issue are Dam Capital Advisors Ltd and ICICI Securities Ltd, while KFin Technologies Ltd will serve as the registrar. The equity shares are intended to be listed on both the BSE and NSE.

Rubicon Research is a pharmaceutical formulations company that emphasises innovation through concentrated research and development. It has an expanding range of specialty products and drug-device combination offerings aimed at regulated markets, especially in the United States.

The pharmaceutical company operates two USFDA-inspected research and development facilities, one located in India and the other in Canada, along with two manufacturing plants in India.

As of March 31, 2024, Rubicon Research has a portfolio consisting of 69 products approved by the USFDA, 19 new drugs pending approval from the USFDA, and 46 products in different phases of development.

Rubicon Research IPO details

The initial public offering consists of a new issuance of equity shares amounting to ₹500 crore and an offer for sale of shares worth ₹585 crore by its promoter, General Atlantic Singapore RR Pte Limited, as stated in the draft documents.

Currently, General Atlantic holds more than 57% stake in Rubicon Research.

The firm plans to allocate ₹310 crore from the fresh issue towards debt repayment. Additionally, the funds will be directed towards fostering inorganic growth through undisclosed acquisitions, as well as for other strategic initiatives and general corporate purposes.

Axis Capital, IIFL Securities, JM Financial, and SBI Capital Markets are the primary book-running managers for the offering.

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