Sanathan Textiles IPO listing date today. Here’s what GMP, experts indicate

Sanathan Textiles IPO share price listing: With the completion of Sanathan Textiles’ initial public offering (IPO) and the share allotment process, investors are now eagerly awaiting the stock’s listing. The ₹550 crore mainboard issue opened for subscription on Thursday, December 19 and concluded on Monday, December 23. The issue saw a healthy response from investors, with an overall subscription of about 37 times. According to SEBI’s T+3 rule, the stock is to be listed on the BSE and the NSE today, i.e. Friday, December 27. Meanwhile, grey market trends show the stock could be listed at a significant premium.

Sanathan Textiles IPO GMP

According to market sources, the current grey market premium (GMP) of Sanathan Textiles IPO is ₹91. This indicates the issue could be listed at a premium of ₹91 on the BSE and the NSE. As the issue price of the stock was ₹321 per share, the estimated listing price of the stock is ₹412, a premium of 28.35 per cent.

What should investors do?

Some experts suggest investors should hold the stock for the long term due to the company’s healthy growth prospects.

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.

“We recommend conservative allotted investors can think of booking profits over and above our expectations, while long-term investors should consider holding it for the long term despite the short-term volatility in the markets. For non-allotted investors, we advise accumulating if we get dips post-listing due to profit booking attempts,” said Tapse.

“Expected healthy listing gain is justified as we believe the company has left something on the table to reward new investors with reasonable valuations in comparison to its listed peers. We also believe the company is well-placed to meet the rising global demand for yarn and textile products,” Tapse added.

Tapse believes Sanathan Textiles is set for new growth from its expansion in the Punjab facility. This expansion can boost production to 1,500 tonnes per day by 2027, and with a diverse product range and advanced capabilities, Sanathan Textiles will have a competitive advantage.

On the other hand, Akriti Mehrotra, a research analyst at StoxBox, underscored the company is facing challenges, including a modest market share of 1.7 per cent, declining revenues and profits, and high working capital requirements even as the company is well-positioned to benefit from India’s growing textile sector, which is driven by rising domestic demand and government initiatives like the PLI scheme.

“While the company is expanding its production capacity and focusing on recycled yarn, these risks should be considered. For those allocated shares, booking profits on a premium listing is advised. We will reassess our recommendation if the company shows a sustained improvement in its financial performance in the future,” said Mehrotra.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.