Nandan Denim Ltd, denim fabric maker in India aims to raise Rs 100 crore ($15 million) through an issue of warrants to foreign investors to fund its expansion.

Apart from expansion, the funds will also be used for investment in proposed subsidiaries, meeting long-term working capital requirement and improving capital structure, among others, the company said in a stock market disclosure.

"Over the years, the magnitude of the operations of the company has increased manifold. To fast track (its) strategic vision, the company requires the infusion of additional funds," said Deepak Chiripal, CEO of Nandan Denim.

The company is planning to issue 50 lakh convertible warrants on a preferential basis to foreign investors at Rs 200 each including a premium of Rs 190.

Existing portfolio investors of the company -- LTS Investment Fund Ltd and LGOF Global Opportunities Ltd -- will be investing. The company will be issuing 25 lakh warrants to them.

This will be the second warrant issue by Nandan Denim Ltd. Last year, the company had issued 25 lakh convertible warrants to an FII, namely Polus Global Fund which has been converted into equity shares at Rs 200 per share upon receipt of Rs 50 crore towards the consideration.

The company has also proposed to increase the aggregate limit for holding shares by the FIIs/FPIs from 24% to 49%. FII and FPI held 11.02% in the company while promoter group holding was at 58.27%, as of June 2016. Post issue of the 50 lakh warrants, the holding of FII and FPIs will increase to 19.70% and promoter holding will decrease to 52.78%.

Nandan Denim's revenue increased to Rs 300.50 crore in the quarter ended June 30 against Rs 280.51 crore in the same period last year. Its net profit rose marginally to Rs 15.97 crore in the last quarter from Rs 15.61 crore in the year-ago period.

The company is part of the diversified conglomerate Chiripal Group, which was established in 1972. The group is engaged in businesses including textiles, chemicals, packaging, infrastructure and education.

Nandan Denim, which is headquartered in Ahmedabad, expanded its capacity from 6 million meters per annum (mmpa) to 110 mmpa over the last 12 years, the company said.