J B Ecotex has filed its draft red herring prospectus with SEBI for an initial public offering built around a Rs 400 crore fresh issue.

The filing, reported on September 29, also includes an offer for sale of up to 1.295 crore shares by existing shareholders.

The company plans to use Rs 320 crore of the proceeds to repay debt, with the balance earmarked for general corporate purposes.

The filing adds to a busy IPO pipeline, as companies look to tap strong investor appetite for primary market offerings this year.

J B Ecotex will now await SEBI’s observations before moving to the next stage of the listing process, which includes setting the price band and opening the issue for subscription. Merchant bankers say investor appetite for mid-sized IPOs remains healthy despite market volatility. The company will need SEBI’s clearance before fixing a price band and opening the issue. A listing would make it one of the notable debuts in its segment this year.