Mumbai-based Mandhana Industries has filed draft red herring prospectus (DRHP) with market regulator SEBI for its proposed initial public offer.

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

The raised funds will be utilized to partly finance the expansion of its yarn dyeing capacity to 3 million kg per annum, its weaving capacity to 30 million m, its processing capacity to 51.6 million m and its garmenting capacity to 14 million pieces per annum.

Recently, rating agency CRISIL has assigned CRISIL IPO grade 3/5 to the IPO.

Mandhana is engaged in the production of fabrics for domestic market and garments largely for export markets. The company has textile and garment manufacturing facilities located at Mumbai and Bangalore, respectively.

Edelweiss Capital and Axis Bank are the lead book managers of the issue.