Sitaram Denims India IPO: DRHP Filed, 3.09 Crore Shares On Offer; Check Issue Details And Fund Utilisation Plans

Sitaram Denims India has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO) of 3.09 crore equity shares.

The proposed Sitarams Denims IPO comprises a fresh issue of 2.64 crore shares and an offer for sale (OFS) of 44.71 lakh shares by promoters.

The Rajasthan-based fabric manufacturer may also raise funds through a pre-IPO placement of up to 50 lakh shares. If it goes ahead with this plan, the number of shares offered in the fresh issue will come down accordingly.

The company intends to use the IPO proceeds to repay debt, set up a garment manufacturing unit and meet its working capital needs.

How Does Sitaram Denims India Plan To Use The IPO Proceeds?

The company plans to use ₹40 crore from the fresh issue proceeds to repay certain outstanding borrowings. Another ₹41.3 crore has been earmarked for setting up a readymade garment manufacturing facility in Bhilwara, Rajasthan.

Additionally, ₹23.2 crore will go towards meeting working capital requirements. The remaining amount will be used for general corporate purposes.

Promoted by the Nuwal family, Sitaram Denims India manufactures woven fabrics, including cotton-spandex, rigid cotton, denim and polyester-viscose fabrics. The DRHP shows that the company’s fund-based loans stood at ₹255 crore as of September 2026.

What Do the Company’s Latest Numbers Look Like?

For the quarter ended June 2026, Sitaram Denims reported ₹75.1 crore in revenue. Profit for the same period came in at ₹7.9 crore.

For FY26, its profit rose 52% year-on-year to ₹24.2 crore. Revenue also increased by 16.1% to ₹242.4 crore during the financial year ended March 2026.

SMC Capitals has been appointed as the merchant banker for the proposed IPO. The company has not yet announced the issue dates or price band. These are among the key Sitaram Denims IPO details investors may want to watch as the issue progresses.

Source DRHP

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