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Corporate Update

Sitaram Denims India Files DRHP For IPO, Plans ₹41.3-Crore Garment Unit

• By  Textile Excellence
• November 01, 2026

Sitaram Denims India Ltd has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) comprising 3.09 crore equity shares. The issue includes a fresh issue of 2.64 crore shares and an offer for sale (OFS) of 44.71 lakh shares by existing promoters. The company may also undertake a pre-IPO placement of up to 50 lakh shares.

The Bhilwara-based textile manufacturer plans to use the proceeds from the fresh issue for debt repayment, working capital and a major expansion into garment manufacturing.

Of the proceeds, ₹40 crore is earmarked for repayment of borrowings, ₹23.2 crore for working capital requirements and ₹41.37 crore for setting up a new readymade garment facility at Banera, Bhilwara. The balance will be used for general corporate purposes.

The proposed garment unit will have a capacity of 10,000 pieces per day, or 3.12 million garments annually, comprising equal quantities of shirts and trousers. The facility will occupy around 7,200 sq metres adjoining the company's existing manufacturing operations.

The garment manufacturing expansion marks a strategic move towards greater vertical integration, enabling Sitaram Denims to extend its presence from fabric production into finished apparel.

The company manufactures cotton-spandex, rigid cotton, denim, polyester-viscose and other blended woven fabrics. Its manufacturing infrastructure includes 204 airjet looms, with additional weaving capacity accessed through job-work arrangements. It produced 24.46 million metres of fabric in FY26 against an installed capacity of 25.20 million metres, representing 97.06% utilisation.

The company reported revenue of ₹242.38 crore in FY26, up 16.1% from ₹208.84 crore in FY25. EBITDA increased 20.5% to ₹50.48 crore, while net profit surged 52% to ₹24.23 crore. For the quarter ended June 2026, revenue stood at ₹75.1 crore and net profit at ₹7.9 crore. Its outstanding fund-based borrowings stood at ₹255 crore as of September 2026.

The IPO is being managed by SMC Capitals. The proposed listing is on the BSE and NSE. 

The company reported revenue of ₹242.38 crore in FY26, up 16.1% from ₹208.84 crore in FY25. EBITDA increased 20.5% to ₹50.48 crore, while net profit surged 52% to ₹24.23 crore. For the quarter ended June 2026, revenue stood at ₹75.1 crore and net profit at ₹7.9 crore. Its outstanding fund-based borrowings stood at ₹255 crore as of September 2026. The IPO is being managed by SMC Capitals. The proposed listing is on the BSE and NSE.