New Delhi, Dec 19 (PTI) The initial public offering (IPO) of yarn manufacturer Sanathan Textiles Ltd got subscribed 45 per cent on the first day of share sale on Thursday.

The initial share sale received bids for 56,67,016 shares against 1,26,22,950 shares on offer, as per NSE data.

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The retail individual investors (RIIs) part received 76 per cent subscription while the quota for non-institutional investors fetched 32 per cent subscription.

Sanathan Textiles on Wednesday said it has mobilised Rs 165 crore from anchor investors.

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The issue, with a price band of Rs 305-321 per share sale, will conclude on December 23.

The company's Rs 550-crore IPO is a combination of a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) of shares valued Rs 150 crore by promoters and promoter group entities.

The company plans to utilise the proceeds from its fresh issue worth Rs 160 crore for payment of debt, while Rs 140 crore will be invested in its subsidiary, Sanathan Polycot Pvt Ltd, for the repayment or prepayment of its borrowings, and the rest will be allocated for general corporate purposes.

Sanathan Textiles operates three distinct yarn business divisions -- polyester yarns, cotton yarns, and yarns -- for technical textiles and industrial applications. These divisions are managed under a single corporate entity.

Dam Capital Advisors and ICICI Securities are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the NSE.

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