India’s primary market has two new developments to watch as textile manufacturer Sitaram Denims India Limited filed its Draft Red Herring Prospectus with SEBI, while agrochemical company Crystal Crop Protection Limited moved closer to its public issue after filing its Red Herring Prospectus with the Registrar of Companies. The two companies represent different industries, but their filings reveal interesting plans for expansion, capital allocation and business development.

Sitaram Denims’ DRHP is dated November 3, 2026, and was filed with SEBI on November 13. The proposed offering is a book-built issue comprising a fresh issue of up to 2.65 crore equity shares and an offer for sale of up to 44.71 lakh shares.

The total proposed offer comprises up to approximately 3.09 crore shares. The final rupee size, price band, subscription dates and other commercial terms have not yet been established in the draft document.

The fresh issue is intended to support several business priorities. These include repayment of borrowings, setting up a readymade garment manufacturing facility, meeting working capital requirements and general corporate purposes.

One of the more interesting parts of the proposal is the planned garment manufacturing facility at Banera in Bhilwara, Rajasthan. The company has earmarked approximately ₹41.37 crore from the fresh issue for this expansion, with deployment currently planned for FY28.

This project could take Sitaram Denims further along the textile value chain. The company currently manufactures woven fabrics, while the proposed facility would give it an additional presence in readymade garment manufacturing.

The company has also proposed using ₹40 crore towards repayment or prepayment of outstanding borrowings. A further ₹23.23 crore is earmarked for working capital, reflecting the funding requirements of its manufacturing and customer supply operations.

Sitaram Denims has reported improving financial performance over the last three financial years. Revenue from operations increased from ₹111.68 crore in FY24 to ₹208.84 crore in FY25 and ₹242.38 crore in FY26.

Profit after tax increased from ₹5.24 crore in FY24 to ₹15.94 crore in FY25 and ₹24.23 crore in FY26. This represents substantial growth in reported profitability over the three-year period.

EBITDA also increased from ₹20.30 crore in FY24 to ₹41.88 crore in FY25 and ₹50.48 crore in FY26. The improvement suggests that the company expanded its operating earnings alongside its revenue base.

An interesting detail is the company’s changing product mix. Cotton-spandex fabrics contributed 72.33% of revenue in FY25, but their contribution declined to 60.60% in FY26 as the company expanded sales across other fabric categories.

Despite this diversification, cotton-spandex remains a significant part of the business. Changes in demand, selling prices and customer preferences for this particular fabric category could therefore influence future revenue and profitability.

Customer concentration is another important disclosure. The top ten customers contributed 57.76% of FY26 revenue, while the largest customer alone accounted for 23.05%. Losing or reducing business from a major customer could have a meaningful impact on the company’s financial performance.

Geographical concentration also deserves attention. Rajasthan and Delhi together accounted for 88.44% of domestic revenue in FY26, making the company particularly dependent on business conditions in these two markets.

The DRHP also highlights working capital and raw material risks. Yarn prices, procurement conditions, inventory requirements and the ability to pass higher input costs to customers can affect margins and cash flows.

There is also a proposed pre-IPO placement provision of up to 50 lakh shares, subject to applicable conditions. If completed, the amount raised through that placement would reduce the size of the fresh issue.

The second development involves Crystal Crop Protection, which filed its RHP with the Registrar of Companies on November 12. Unlike Sitaram Denims, which is still at the draft filing stage, Crystal has announced the commercial details of its upcoming public issue.

Crystal Crop Protection has set a price band of ₹259 to ₹272 per share for its ₹455.49 crore IPO. The issue is scheduled to open on November 18 and close on November 20, 2026, with a proposed listing on the NSE and BSE.

The offering comprises a fresh issue of approximately ₹354.77 crore and an offer for sale of approximately ₹100.71 crore. The fresh issue will bring capital into the company, while the proceeds from the offer for sale will go to the selling shareholder.

The promoter selling shareholder is Ankur Aggarwal, who is offering up to 37.03 lakh shares. The distinction between the fresh issue and the offer for sale is important when assessing how much money will actually be available for the company’s operations.

Crystal plans to use part of the fresh issue proceeds to repay or prepay certain borrowings. It has also earmarked funds for repayment of borrowings at its material subsidiary, Saffire Crop Science, alongside proposed inorganic growth opportunities and general corporate purposes.

Crystal Crop Protection operates across crop protection products and seeds. Its portfolio includes herbicides, fungicides, insecticides, bio-stimulants, plant growth regulators, fertilisers, micronutrients and seeds for field crops, vegetables and flowers.

The company has an integrated business model covering research and development, manufacturing, seed processing and distribution. Its product portfolio and distribution reach give it exposure to several parts of the agricultural input market, although performance remains linked to agricultural demand, weather conditions and farmer purchasing power.

Crystal’s IPO also presents valuation questions. At the upper end of the price band, the reported FY26 earnings multiple is approximately 24.59 times, compared with an industry peer group average of approximately 20.07 times, according to the IPO details reported by the company and market coverage. Investors will need to examine the company’s growth, profitability, debt and risks alongside this valuation.

Together, the two filings show different capital market strategies. Sitaram Denims is seeking funds for debt reduction, working capital and a move into garment manufacturing, while Crystal Crop Protection is preparing a priced public issue to support its financial and strategic priorities. The next developments to watch are SEBI’s review of Sitaram’s draft offer document and the subscription response to Crystal Crop Protection’s IPO.