Sanathan Textiles share price lists at a 31% premium on BSE; check details
Sanathan Textiles share price witnessed a healthy listing gain as the stock debuted at a 31 per cent premium on the BSE on Friday, December 27.
Sanathan Textiles share price witnessed a healthy listing gain as the stock debuted at a 31 per cent premium on the BSE on Friday, December 27. Sanathan Textiles share price opened at ₹419.10 on the BSE, up 30.6 per cent against its issue price of ₹321. On the NSE, the stock opened at ₹422.30 at a premium of 31.6 per cent.
The listing of Sanathan Textiles share price was slightly better than the grey market expectations. According to market sources, the grey market premium (GMP) of Sanathan Textiles this morning was ₹88. As the issue price of the stock was ₹321 per share, the estimated listing price of the stock is ₹409, a premium of 27 per cent.
Sanathan Textiles IPO
Sanathan Textiles' IPO opened for subscription on Thursday, December 19, and concluded on Monday, December 23, with an aim of raising ₹550 crore. The issue saw a healthy response from investors, with an overall subscription of about 37 times.
The company has fixed the Sanathan Textiles IPO price band at ₹305 to ₹321 per equity share.
The company intends to use the net proceeds from the issue for repayment and/ or prepayment, in full or part, of certain borrowings, investment in a subsidiary, Sanathan Polycot Pvt Ltd, and general corporate purposes.
Several experts suggest investors should hold the stock for the long term.
Prashanth Tapse, senior VP of research at Mehta Equities, pointed out that despite a downtrend in the stock market last week followed by multiple IPOs, Sanathan Textiles managed to get healthy demand from all sets of investors due to reasonable valuations.
Tapse said while risk-averse investors can consider booking profits, investors with long-term investment goals should keep the stock.
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