Sanathan Textiles has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise as much as Rs 800 crore through an initial public offering (IPO). The IPO is a combination of a fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale (OFS) of up to Rs 300 crore by promoters and promoter group entities.Proceeds from the fresh issue of shares worth Rs 210 crore will be used for investment in the company's subsidiary -- Sanathan Polycot Private Limited -- for funding its long-term working capital requirements, Rs 175 crore for repayment of debt and besides general corporate purposes. Dam Capital Advisors and ICICI Securities are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.Sanathan Textiles operates three distinct yarn business divisions - polyester yarns, cotton yarns, and yarns - for technical textiles and industrial applications. These divisions are currently managed under a single corporate entity.