Sitaram Denims India has lodged its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the stage for a stock market debut through an initial public offering (IPO) of 3.09 crore equity shares.
The offering comprises a fresh issue of 2.64 crore equity shares and an offer for sale (OFS) of 44.71 lakh shares by the promoter group.
Total proceeds of the Rajasthan-headquartered woven fabric producer cannot yet be calculated, as the price band for the shares remains to be fixed.
The company has also kept open the option of a pre-IPO placement of up to 50 lakh shares, to be completed ahead of filing the red herring prospectus with the Registrar of Companies.
Should it proceed, the fresh issue will be scaled back by the amount mobilised through that placement, according to the submitted draft documents.
Use of Proceeds
Operating from its manufacturing base in Bhilwara, Rajasthan, and promoted by the Nuwal family, Sitaram Denims produces woven fabrics. Its range spans cotton, stretch, blended and denim categories.
From the net fresh issue proceeds, Rs 40 crore is earmarked for settling selected borrowings, while Rs 41.3 crore will fund a new readymade garment manufacturing facility at Bhilwara.
A further Rs 23.2 crore is allocated to working capital needs, with any balance directed to general corporate purposes.
“The prospectus shows that fund-based borrowings stood at Rs 255 crore as of September 2026,” Money Control reported.
Financial Track Record
Recent financial results have been robust. For the quarter ended June 2026, the company posted a profit of Rs 7.9 crore on revenue of Rs 75.1 crore.
Sitaram Denim has informed on its website that it has a fully captive annual woven fabric production capacity of 25.20 million metres which is produced on 204 airjet looms.
