Sumeet Industries Limited’s Rs. 199.75 Cr Rights Issue to Fund 140,000 TPA Capacity Expansion, Debt Reduction and Solar Project

PNN

Jun 23, 2026 - 19:30

Rights Issue Overview:

The Board of Directors of Sumeet Industries Limited has approved the terms of a Rights Issue aggregating to ₹199.75 Cr through the issuance of ₹16.84 Cr fully paid-up equity shares.

The Company proposes to deploy ₹49.00 Cr from the Rights Issue proceeds towards the acquisition and operationalization of an additional 140,000 Ton Per Annum Polyester Chips (CP) Plant acquired from Nakoda Limited in Surat, Gujarat. The project involves a total capital outlay of ₹90.00 Cr, with the balance ₹41.00 Cr being funded through internal accruals. Expected to be recommissioned in Q1 FY27-28, the facility will strengthen backward integration and support the Company’s downstream polyester manufacturing operations.

Key Terms of Rights Issue:

Rights Issue Size: ₹199.75 Cr
Shares Offered: 16.84 Cr Equity Shares
Issue Price: ₹11.86 Per Share
Face Value: ₹2 Per Share
Entitlement Ratio: 8 Rights Shares for every 25 Shares Held
Record Date: June 12, 2026
Issue Opens: June 22, 2026
Last Date for Renunciation: July 15, 2026
Issue Closes: July 20, 2026

Proposed Utilisation of Net Proceeds (₹194.90 Cr):

Working Capital Support (₹100.00 Cr): To strengthen working capital requirements, support higher production volumes, and ensure efficient procurement of raw materials.
Nakoda Asset Integration (₹49.90 Cr): To facilitate the integration, operationalization, and ramp-up of acquired assets of Nakoda Limited.
Debt Repayment (₹23.00 Cr): To prepay existing borrowings, reduce finance costs, and strengthen the Company’s balance sheet.
6.5 MW Solar Power Plant (₹22.00 Cr): To establish a captive solar power plant, reduce energy costs, and enhance long-term energy security and sustainability.

Strategically, the proposed capital allocation is focused on four key pillars – manufacturing scale-up, asset integration, balance sheet strengthening, and energy security. Together, these initiatives are expected to enhance operational resilience, improve resource efficiency, and strengthen the Company’s long-term growth platform. The planned investments are intended to strengthen Sumeet Industries’ competitive positioning while supporting sustainable and profitable growth over the long term.

The capital raised through the Rights Issue will support Sumeet Industries’ next phase of growth by strengthening working capital, accelerating the integration of acquired manufacturing assets, optimizing the capital structure through debt reduction, and enhancing energy security through a captive solar power facility. These initiatives are expected to improve operational efficiency and expand manufacturing capabilities.

Commenting on the Rights Issue, Mr. Pratik R. Jaju, Managing Director of Sumeet Industries Limited said, “The Rights Issue marks an important milestone in Sumeet Industries’ growth journey and reflects our commitment to strengthening the Company’s operational and financial position. We are pleased to offer our existing shareholders an opportunity to participate in the Company’s future growth.

The proposed fund raise of ₹199.75 Cr will support key strategic priorities, including working capital requirements, integration of acquired manufacturing assets, debt reduction, and investment in a captive solar power facility. A key focus area will be the operationalization of the recently acquired Polyester Chips manufacturing facility from Nakoda Limited, which is expected to strengthen backward integration and enhance our integrated polyester value chain.

This acquisition will support our downstream POY and FDY operations, enhance operational scale, and provide a strong platform for future growth. Driven by the anticipated benefits of this acquisition and its integration, the Company expects approximately 30% growth in Total Income during FY 2026-27, with EBITDA margins in the range of 5.0%–6.0%. Following the successful integration of the acquisition, Total Income is expected to nearly double in FY 2027-28, while EBITDA margins are expected to improve to 5.5%–6.5%.

As we continue to focus on expanding our presence across the polyester value chain and strengthening backward integration, we believe this Rights Issue will further position the Company to capitalize on emerging growth opportunities and deliver sustainable long-term value for all stakeholders.”

About Sumeet Industries Limited

Incorporated in 1988, Sumeet Industries Limited is a Surat-based integrated polyester manufacturer engaged in the production of Pet Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Polyester Texturized Yarn. The company has been taken over by the Eagle Group, Successful Resolution Applicant, in pursuance of the Hon’ble NCLT order dated 16 July 2024. The promoters of Eagle Group are seasoned technocrats with over 40 years of experience in the textile industry, bringing strong operational and strategic expertise to the company.

With over four decades of experience, Sumeet Industries operates a technologically advanced manufacturing facility equipped with international-standard quality testing and R&D infrastructure for developing a wide range of yarns and applications. The Board has approved Phase 1 of the polyester yarn capacity expansion, involving an addition of 15,000 tonnes per annum with an investment of ₹30 Cr, aimed at strengthening the company’s presence in the value-added synthetic yarn segment while supporting scale and profitability.

The company has also invested a 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant which has an installed capacity of 14 MW as a captive consumer and has been sourcing solar. Apart from this, the company has also been weighing to source to get renewable power (Solar, Wind, and Both) under Captive/Group captive from various generators.

Sumeet Industries is also focusing on developing value-added yarns, introducing bright and dope dyed yarn, and widening its product range to cater to diverse applications within the domestic textile industry.

In FY26, the company recorded revenue of ₹1,053.81 Cr, EBITDA of ₹60.77 Cr, and Profit After Tax (Including Exceptional Item) of ₹27.33 Cr.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

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