Rajasthan textile firm Sitaram Denims India files draft papers for IPO
The company plans to issue 3.09 crore equity shares to fund debt repayment and a new garment manufacturing facility.
Sitaram Denims India, a Rajasthan-based fabric manufacturing company, has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), according to Moneycontrol.
The IPO consists of a fresh issue of 2.64 crore equity shares and an offer-for-sale of 44.71 lakh shares by the promoters. The company may also consider a pre-IPO placement of 50 lakh shares, which would reduce the fresh issue size by the amount raised.
The company intends to use Rs 40 crore of the net fresh issue proceeds to repay certain debt and Rs 41.3 crore to set up a readymade garment manufacturing facility in Bhilwara. An additional Rs 23.2 crore will be used for working capital, with the remainder for general corporate purposes.
The Nuwal-family promoted firm manufactures various woven fabrics, including denim, cotton-spandex, and polyester-viscose. As of September 2026, the company's total fund-based outstanding borrowings were Rs 255 crore.
For the fiscal year ended March 2026, the company reported a 52 per cent year-on-year surge in profit to Rs 24.2 crore, while revenue grew by 16.1 per cent to Rs 242.4 crore. For the three months ended June 2026, profit stood at Rs 7.9 crore on revenue of Rs 75.1 crore.
SMC Capitals has been appointed as the merchant banker to manage the IPO process.