Sitaram Denims India, the Rajasthan-based fabric products manufacturing company, filed draft red herring prospectus with Securities and Exchange Board of India to raise funds via initial public offering (IPO) of 3.09 crore equity shares.
The IPO included fresh issue of 2.64 crore equity shares, along with an offer-for-sale of 44.71 lakh shares by promoters.
Further, the company may also consider raising funds by issuing 50 lakh shares in pre-IPO placement before filing the red herring prospectus with the Registrar of Companies. If the pre-IPO round is undertaken, the fresh issue size will be reduced to the extent of amount raised in pre-IPO placement, as per the draft papers filed on November 3.
With manufacturing operations in Bhilwara, Rajasthan, Nuwal-family promoted Sitaram Denims India manufactures woven fabrics, comprising products like cotton-spandex, rigid cotton, denim, polyester-viscose fabrics and other blended fabrics.
The company proposes to utilise Rs 40 crore of proceeds from net fresh issue for repaying certain debt, and Rs 41.3 crore for setting up of readymade garment manufacturing facility at Bhilwara.