Textile and garment maker Mandhana Industries has filed draft prospectus with market regulator SEBI for its proposed initial public offer.

The company plans to raise funds through public offer to meet its expansion projects and has filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI), a company statement said.

Mandhana Industries plans to issue 83 lakh equity shares of face value Rs 10 each at a price to be decided later.

“The company has placed 6.56 per cent of post-issue fully diluted equity with Axis Bank on a preferential basis to raise Rs 250 crore,” it said.

Edelweiss Capital and Axis Bank are the lead book managers of the issue that would be through a 100 per cent book building process.

Mandhana has textile and garment manufacturing facilities located at Mumbai and Bangalore, respectively.

The company plans to raise funds to set up a new garment manufacturing facility and expand its existing yarn dyeing and weaving facility at an estimated capex of Rs 206 crore, it said.

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