TCTerrytex Files Draft Red Herring Prospectus with SEBI to Raise Rs 170 Crore

TC Terrytex Seeks to Raise Rs 170 Crore via IPO

Punjab-based terry towel products maker TC Terrytex has filed a Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an 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, an investor, will be selling 67.5 lakh shares via an offer-for-sale.

The firm may also consider raising funds up to Rs 15 crore before the launching of the IPO for public subscription, a pre-IPO round, which is part of the fresh issue component. As 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 the sale and processing of dyed yarn in the domestic market.

The company's 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.

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

Reasons for Raising Funds

The primary reason for approaching capital markets is to raise funds for the repayment of certain outstanding borrowings up to Rs 120 crore. The remaining fresh issue proceeds will be utilized for general corporate purposes. As of December 2025, the company had total outstanding borrowings of Rs 170.9 crore.

Financial Performance

On the financial front, TC Terrytex has recorded a profit of Rs 7.8 crore and revenue of Rs 324.5 crore for the six-month 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 the previous year. Revenue from operations in the same period soared 2.9 percent to Rs 673.5 crore from Rs 654.4 crore.

Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO

IPO Details

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