Sitaram Denims India files IPO papers with Sebi

Woven fabric manufacturer Sitaram Denims India Ltd has filed draft papers with capital markets regulator Sebi for an initial public offering (IPO).

The Bhilwara-based company's proposed IPO comprises a fresh issue of 2.64 crore equity shares and an offer for sale (OFS) of 44.71 lakh shares by promoters -- Madhu Nuwal, Mamta Nuwal and Sangeeta Nuwal, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday.

Sitaram Denims India plans to utilise the proceeds from the fresh issue to the tune of Rs 40 crore towards repayment or prepayment of outstanding borrowings, Rs 41.37 crore for setting up a readymade garment manufacturing facility in Bhilwara, Rs 23.23 crore towards working capital requirements and a portion will be used for general corporate purposes.

Sitaram Denims India manufactures and supplies branded and unbranded woven fabrics, primarily catering to the apparel segment. Its product portfolio includes cotton-spandex, rigid cotton, denim, polyester-viscose and other blended fabrics.

The company operates a manufacturing facility with an installed weaving capacity of 25.20 million metres per annum and sizing capacity of 6 million kg per annum.

As part of its expansion plans, the company proposes to set up a readymade garment manufacturing facility at Banera, Bhilwara, with an installed capacity of 3.12 million garments annually.

SMC Capitals is the book-running lead manager to the issue, while Bigshare Services is the registrar.
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