Terry towel products exporter TC Terrytex files draft papers with SEBI, plans to raise Rs 170 crore via fresh issue

Punjab-based terry towel products maker TC Terrytex has filed Draft Red Herring Prospectus with Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).

As per the draft papers filed on March 30, the company has proposed to raise Rs 170 crore by issuing fresh shares, while Chandigarh-based textiles trading company Ashis Living - investor - will be selling 67.5 lakh shares via offer-for-sale.

The firm may also consider raising funds up to Rs 15 crore before the launching of IPO for the public subscription, i.e. pre-IPO round. It is a part of fresh issue component.

Being a business-to-business (B2B) supplier, TC Terrytex operates in the cotton-based home textile segment, manufacturing terry towel products primarily for international markets. In addition, it also involves in sale and processing of dyed yarn in the domestic market.

Its manufacturing facility at Dera Bassi, Punjab has a production capacity of 9,349.90 MTPA and 5,845 MTPA of terry towel and dyed yarn, respectively.

Click Here To Read All IPO News

The primary reason for approaching capital markets is to raise funds for repayment of certain outstanding borrowings up to Rs 120 crore. And the remaining fresh issue proceed will be utilsied utilised for general corporate purposes.

As of December 2025, the company had total outstanding borrowings of Rs 170.9 crore.

On the financial front, TC Terrytex has recorded profit of Rs 7.8 crore and revenue of Rs 324.5 crore for six months period ended September 2025. Profit in the financial year ended March 2025 grew by 26.5 percent to Rs 17 crore from Rs 13.4 crore in previous year. Revenue from operations in the same period soared 2.9 percent to Rs 673.5 crore from Rs 654.4 crore.

Sobhagya Capital Options is appointed as the book running lead manager for the TC Terrytex IPO.