Sitaram Denims India has filed draft papers with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The company’s proposed IPO comprises a fresh issue of 2.64 crore equity shares and an offer for sale (OFS) of 44.71 lakh shares by promoters -- Madhu Nuwal, Mamta Nuwal and Sangeeta Nuwal.The company plans to utilise the proceeds from the fresh issue to the tune of Rs 40 crore towards repayment or prepayment of outstanding borrowings, Rs 41.37 crore for setting up a readymade garment manufacturing facility in Bhilwara, Rs 23.23 crore towards working capital requirements and a portion will be used for general corporate purposes. SMC Capitals is the book-running lead manager to the issue.Sitaram Denims India manufactures and supplies branded and unbranded woven fabrics, primarily catering to the apparel segment. Its product portfolio includes cotton-spandex, rigid cotton, denim, polyester-viscose and other blended fabrics.