Sitaram Denims India Files DRHP With SEBI for IPO Comprising 2.64 Crore Fresh Shares
Bhilwara-headquartered woven fabric 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).
The proposed issue includes a fresh issue of up to 2.64 crore equity shares (face value ₹5 each) and an offer for sale (OFS) of up to 44.71 lakh equity shares by promoter selling shareholders Madhu Nuwal, Mamta Nuwal, and Sangeeta Nuwal. The equity shares will be listed on both the BSE and the National Stock Exchange of India (NSE).
Allocation of IPO Proceeds
According to the draft prospectus, Sitaram Denims India plans to allocate the net proceeds raised from the fresh issue across several key operational and capital expenditure objectives:
- Debt Reduction: ₹40 crore will be utilized towards full or partial repayment or prepayment of outstanding borrowings.
- Capacity Expansion: ₹41.37 crore is earmarked to set up a new readymade garment manufacturing unit at Banera in Bhilwara, Rajasthan.
- Working Capital: ₹23.23 crore will be deployed to meet the company's day-to-day working capital requirements.
- General Corporate Purposes: The remaining funds will support ongoing business development and corporate needs.
Business and Operational Overview
Incorporated in 2011, Sitaram Denims India manufactures and supplies branded and unbranded woven fabrics catering largely to apparel makers. Its portfolio encompasses cotton-spandex, rigid cotton, denim, polyester-viscose (PV), and diverse blended fabrics.
The company's primary manufacturing hub currently houses an annual weaving capacity of 25.20 million metres and a sizing capacity of 6 million kilograms. With its proposed Banera facility, the business intends to expand downstream into apparel manufacturing, adding an annual production capacity of 3.12 million readymade garments, such as trousers and shirts.
Financial Snapshot
Sitaram Denims India has registered notable top-line and bottom-line growth over recent fiscal years:
- Revenue and Net Profit: Total revenue climbed to ₹242.38 crore in FY26 from ₹111.68 crore in FY24, reflecting a compound annual growth rate (CAGR) of 47.32%. Profit after tax (PAT) rose 51% to ₹24.23 crore in FY26, up from ₹15.94 crore in FY25.
- First-Quarter FY27 Performance: For the quarter ended June 30, 2026, the company logged total income of ₹75.43 crore and a net profit of ₹7.98 crore.
- Debt and Cash Flow: Total debt stood at ₹255.03 crore as of September 30, 2026, with a debt-to-equity ratio of 2.01 times in FY26. Operating cash flow remained modest relative to accounting profit, coming in at ₹2.36 crore for FY26 following an operating cash outflow of ₹2.92 crore in FY25.
Issue Structure and Intermediaries
The public offer reserves not more than 50% of the net issue for Qualified Institutional Bidders (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for Retail Individual Investors (RIIs).
SMC Capitals Limited has been appointed as the sole book-running lead manager for the issue, while Bigshare Services Private Limited will serve as the registrar. Pricing and bidding dates will be determined after regulatory review and final clearances from SEBI.
