KOCHI — Kitex Garments Ltd. plans to raise as much as ₹3,000 crore through a qualified institutional placement and other securities as the Kerala-based apparel maker seeks fresh capital while expanding its manufacturing footprint in Telangana.

The company’s board approved the fundraising proposal on Aug. 14, allowing Kitex to issue equity shares, non-convertible debentures with warrants, convertible securities or a combination of instruments, according to the company.

The size, pricing and structure of the transaction will be determined by the board or an authorised committee. The fundraising will also require applicable regulatory and shareholder approvals.

The proposed capital raise comes as Kitex undertakes a major expansion outside its home state of Kerala. The company is developing manufacturing facilities at the Kakatiya Mega Textile Park and Sitarampur Industrial Park in Telangana, projects that are expected to require significant investment as production capacity is scaled up.

The fundraising plan also comes against a weaker quarterly performance.

Kitex reported consolidated revenue of ₹158.43 crore in the quarter ended June, compared with ₹196.69 crore in the same period a year earlier, a decline of about 19%. The company posted a consolidated loss of ₹17.12 crore for the quarter.

The planned ₹3,000 crore capital raising would give Kitex additional financial flexibility as it pushes ahead with its Telangana manufacturing strategy, subject to securing the necessary approvals.