News · BFSI
Bhilwara-based woven fabric manufacturer Sitaram Denims India has submitted draft IPO papers to Sebi, proposing a fresh issue and an offer for sale to fund debt repayment and a new garment facility.
✦ AI SUMMARY 30-second read
- IPO comprises a fresh issue of 2.64 crore equity shares and an OFS of 44.71 lakh shares by promoters.
- Rs 40 crore of fresh issue proceeds earmarked for debt repayment; Rs 41.37 crore for a new garment manufacturing facility in Bhilwara.
- Proposed garment facility at Banera, Bhilwara, to have an installed capacity of 3.12 million garments annually.
Why it matters: The listing would provide public capital for a fabric manufacturer seeking to move into readymade garment production in Rajasthan.
This summary was generated by AI. Editors may review and update it.
Sitaram Denims India, a woven fabric manufacturer based in Bhilwara, has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India for an Initial Public Offering. The proposed issue combines a fresh issue of equity shares with an offer for sale by existing promoters.
The OFS portion of 44.71 lakh shares will be offloaded by promoters Madhu Nuwal, Mamta Nuwal and Sangeeta Nuwal. SMC Capitals is the book-running lead manager to the issue, and Bigshare Services is acting as registrar.
What was announced
The fresh issue comprises 2.64 crore equity shares. Of the proceeds, Rs 40 crore is allocated towards repayment or prepayment of outstanding borrowings, Rs 41.37 crore towards setting up a readymade garment manufacturing facility in Bhilwara, and Rs 23.23 crore towards working capital requirements. A portion will also be used for general corporate purposes.
The company proposes to establish the new garment facility at Banera, Bhilwara, with an installed capacity of 3.12 million garments annually.
About the company
Sitaram Denims India manufactures and supplies both branded and unbranded woven fabrics, with its products primarily serving the apparel segment. Its portfolio covers cotton-spandex, rigid cotton, denim, polyester-viscose and other blended fabrics.
The company currently operates a manufacturing facility with an installed weaving capacity of 25.20 million metres per annum and a sizing capacity of 6 million kg per annum.
What happens next
The IPO is subject to Sebi's review and approval of the draft papers. The proposed garment facility at Banera would represent a step beyond the company's existing fabric manufacturing operations into finished garment production.
Elets will update this story as the regulatory process progresses.
