Sitaram Denims India IPO

The offer

Issue method	Book built issue
Total issue	Up to 3,09,38,000 shares
Issue type	Fresh issue and offer for sale
Fresh issue	Up to 2,64,67,000 shares
Offer for sale	Up to 44,71,000 shares
Total issue size	Depends on the price band
Face value	₹5 per share
Price band	Not announced (comes with the RHP)
Lot size	Not announced
IPO dates	Not announced

Shares & intermediaries

Shares before the issue	8,40,40,000
Shares after the issue	11,05,07,000 (pre-issue + fresh shares)
Proposed listing	BSE, NSE
Book running lead managers	SMC Capitals Limited
Registrar	Bigshare Services Private Limited

Strengths · 6

• 01Revenue from operations grew from Rs 111.68 crore in FY2024 to Rs 242.38 crore in FY2026, a CAGR of 47.32%.
• 02EBITDA margin rose from 18.18% in FY2024 to 20.83% in FY2026, and PAT margin from 4.69% to 9.99%.
• 03The plant ran at 97.06% average capacity utilisation in FY2026 on 204 looms, up from 79.54% in FY2025.
• 04The customer base grew from 147 revenue-generating customers in FY2024 to 316 in FY2026.
• 05Return on equity stood at 23.97% in FY2026 against 7.42% in FY2024.
• 06The plant sits in Bhilwara, a textile hub with spinning, weaving and processing, close to suppliers, job workers and customers.

Risks · 10

• 01The top ten customers gave 57.76% of revenue from operations in FY2026 and 64.54% in FY2025.
• 02Cotton-spandex fabric gave 60.60% of revenue in FY2026 and 72.33% in FY2025, so one product drives most sales.
• 03Rajasthan and Delhi together gave 88.44% of domestic revenue in FY2026.
• 04Operating cash flow was negative at Rs -2.92 crore in FY2025 and only Rs 2.36 crore in FY2026, while PAT was Rs 24.23 crore in FY2026. Net working capital days were 200 in FY2026.
• 05Total borrowing was Rs 227.27 crore at 31 March 2026 against a net worth of Rs 113.06 crore, a debt-to-equity ratio of 2.01.
• 06The top ten suppliers gave 74.13% of purchases in FY2026, mostly through purchase orders and not long-term contracts.
• 07The company depends on promoter Sitaram India Limited for dedicated weaving capacity, which brings related-party risk.
• 08All dyeing and finishing is done by third-party processors in Rajasthan; processing expenditure was Rs 20.94 crore in FY2026.
• 09Promoters face 20 direct and indirect tax proceedings of Rs 10.63 million, and one civil case against them is not ascertainable.
• 10Of the objects, Rs 40.00 crore goes to debt repayment and 3 promoter group members sell up to 44,71,000 shares in the offer for sale at an average cost of Rs 2.50 per share.

Sitaram Denims India Limited makes branded and unbranded woven fabrics, mainly for the apparel segment. Its main products are cotton-spandex fabrics, rigid cotton fabrics, denim fabrics and polyester-viscose fabrics. It sells them as grey fabric and as finished fabric. It also does job-work weaving and sizing for other customers and sells sized yarn.

The company has one owned plant at Balesaria, Banera tehsil, Bhilwara district, Rajasthan. The plant has 204 shuttleless airjet looms, an installed weaving capacity of 25.20 million metres a year and a sizing capacity of 6.00 million kilograms a year. The company also uses dedicated weaving capacity at Sitaram India Limited, one of its promoters, under an exclusive job-work arrangement made after FY2026.

Its customers are business buyers: textile and apparel makers, wholesalers and other textile players, reached directly and through agents. It served 316 revenue-generating customers in FY2026, against 232 in FY2025 and 147 in FY2024. In FY2026, domestic sales were 96.16% of revenue from operations, direct exports 3.02% and sales through merchant exporters 0.81%. Products reached 15 states and union territories, and exports went to countries such as Nepal, Syria, Ecuador, Peru and South Africa.

The company was incorporated on 2 February 2011 as a public company and is based in the RIICO Industrial Area, Bhilwara. Anil Kumar Nuwal, its Chairman and Managing Director, has 38 years of experience in the textile industry. Downstream dyeing and finishing are done by third-party processors, all of them in Rajasthan.

The industry

As per the CareEdge report, the Indian textile and apparel industry is set to grow from USD 188 billion in FY26 to USD 350 billion in FY30, a CAGR of 16.8%. The global textile market rose from USD 1,209 billion in 2019 to USD 1,518 billion in 2025. Cotton woven fabric production in India was 3,68,142 thousand metres in FY26 against 3,71,200 thousand metres in FY25. The Indian readymade garments market rose from USD 70.2 billion in FY20 to USD 110.7 billion in FY26. Bhilwara in Rajasthan is a key hub for spinning, weaving and processing.

Customer concentration: Top 5 customers gave 44.37% of FY2026 revenue from operations (52.03% in FY2025).