Sitaram Denims India Files Draft Papers with SEBI to Raise Funds via 3.09 Crore Share IPO
Bhilwara-based textile manufacturer Sitaram Denims India Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO).
According to the draft papers filed with the market regulator and stock exchanges, the public issue comprises an offer of up to 30,938,000 equity shares with a face value of ₹5 each.
Issue Structure and Offer Details
The proposed initial share sale will be conducted through the book-building mechanism and consists of a fresh issue alongside an offer for sale (OFS):
- Fresh Issue: Up to 26,467,000 equity shares of face value ₹5 each.
- Offer for Sale (OFS): Up to 4,471,000 equity shares of face value ₹5 each by existing shareholders.
- Total Issue Size: Up to 30,938,000 equity shares.
In addition, the company, in consultation with the merchant banker, may consider a pre-IPO placement of equity shares not exceeding 20% of the fresh issue size. If such a placement is completed, the fresh issue component will be reduced accordingly.
SMC Capitals Limited has been appointed as the sole Book Running Lead Manager (BRLM) to manage the public issue. The equity shares are proposed to be listed on the BSE and the National Stock Exchange of India (NSE).
Business Overview and Operations
Sitaram Denims India is headquartered in Bhilwara, Rajasthan, a prominent textile manufacturing cluster in northern India. Promoted by Anil Nuwal and family members, the company operates in the textile weaving and garment fabric space, manufacturing grey denim fabric and finished fabric under the 'Sitaram' brand.
Beyond the domestic market, the company has been ramping up its overseas footprint, supplying fabrics directly to overseas markets such as Latin America, Bangladesh, and Saudi Arabia, with an ongoing strategy to generate half of its revenue from export sales.
Financial Snapshot
In recent financial years, the company has seen significant scaling up of its operations following capacity enhancement initiatives. Driven by higher volumes of fabric manufacturing, Sitaram Denims India reported operating revenues of approximately ₹210 crore in fiscal 2025, up from around ₹112 crore in fiscal 2024, maintaining operating profit margins in the range of 18% to 23%.
The company's planned primary market debut comes amid ongoing momentum in the Indian IPO landscape, where manufacturing and export-oriented industrial firms are seeking public capital to deleverage balance sheets, meet working capital needs, and fund operational expansions.
