The Coimbatore-based SP Apparels has received capital market regulator Sebi’s approval for raising around Rs 215 crore through an initial public offering (IPO).

The firm, which had filed its draft red herring prospectus (DRHP) with Sebi in December 2015 for launching the IPO, received clearance from the regulator recently, according to the latest update.

Established in 1989, the company manufactures and exports knitted garments for infants and children. The firm also manufactures and retails menswear in India under the brand ‘Crocodile’.

Proceeds from the fresh issue will be utilised for repayment of debt, expansion and modernisation of manufacturing facility at Salem in Tamil Nadu and opening of new stores for the sale of ‘Crocodile’ products.

The funds raised will be also used for addition of balancing machineries for its existing dyeing unit at Sipcot, Perundurai in Tamil Nadu and other general corporate purposes.

The company expects to realise the benefits of listing of the equity shares on the stock exchanges, including the enhancement of its brand name and provision of liquidity to the shareholders.