Sanathan Textiles Listing Date Today. This is what GMP experts say

Price quotation of the Sanathan Textiles IPO share: After completing the initial public offering (IPO) of Sanathan Textiles and the share allotment process, investors are now eagerly waiting for the stock to be listed. The ₹The ₹550 Crore motherboard issue opened for subscription on Thursday, December 19 and closed on Monday, December 23. The issue received a good response from investors, with a total subscription of around 37 times. As per SEBI’s T+3 rule, the stock is scheduled to be listed on the BSE and NSE today i.e. Friday, December 27. Meanwhile, gray market trends show the stock could trade at a significant premium.

Sanathan Textiles IPO GMP

According to market sources, the current gray market premium (GMP) of Sanathan Textiles’ IPO is ₹91. This indicates that the issue could be quoted at a premium of ₹91 on BSE and NSE. The issue price was the share ₹The estimated stock market price is 321 per share ₹412, a premium of 28.35 percent.

What should investors do?

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

Prashanth Tapse, senior vice president of research at Mehta Equities, pointed out that despite a downtrend in the stock market last week followed by several IPOs, Sanathan Textiles has managed to receive healthy demand from all investor groups due to reasonable valuations.

Tapse said while risk-averse investors may consider booking profits, investors with long-term investment goals should hold on to the stock.

“We recommend that conservative allocation investors consider booking profits above our expectations, while long-term investors should consider holding for the long term despite the short-term volatility in the markets. For unallocated investors, we advise accumulation if there are dips after listing due to profit booking attempts,” said Tapse.

“The expected strong stock market appreciation is justified as we believe the company has left something left to reward new investors with reasonable valuations relative to its listed peers. We also believe the company is well positioned to meet increasing global demand for yarn and textile products,” Tapse added.

Tapse believes that Sanathan Textiles will achieve new growth through the expansion of its plant in Punjab. This expansion can increase 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, research analyst at StoxBox, highlighted that the company is facing challenges including a modest market share of 1.7 percent, declining sales and profits, and high working capital requirements, although the company is well positioned to benefit from the growing textile sector India, driven by increasing domestic demand and government initiatives such as the PLI scheme.

“As the company expands its production capacity and focuses on recycled yarn, these risks should be taken into account. For the allocated shares, it is recommended to record profits at a premium listing. We will re-evaluate our recommendation if the company shows sustained improvement in its financial performance in the future,” Mehrotra said.

Read all the news about the IPO here

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.