New Delhi

J B Ecotex Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO) comprising a fresh issue of shares worth Rs 400 crore. Along with the fresh issue, there will be an Offer for Sale (OFS) of up to 1.29 crore equity shares by promoters, according to the Draft Red Herring Prospectus (DRHP) filed by the Surat-based company on Monday. The company may also consider a pre-IPO placement of up to Rs 80 crore. If completed, the amount raised through the placement will be reduced from the fresh issue size. Of the fresh issue proceeds, Rs 320 crore will be used for repayment or pre-payment, in full or part, of outstanding borrowings of the company and its subsidiary, with the balance earmarked for general corporate purposes. J B Ecotex, incorporated in 2012, is engaged in recycling PET bottles and other PET waste to manufacture recycled PET products, which are used in textiles, food-grade packaging and other packaging materials.