Sumeet Industries Limited, a prominent integrated polyester manufacturer based in Surat, Gujarat, has announced a Rights Issue aggregating to Rs 199.75 crore. The company is listed on both the NSE (SUMEETINDS) and BSE (514211). The move is aimed at enhancing financial flexibility and supporting strategic business priorities, including a major capacity expansion, debt reduction, and investment in renewable energy.
Rights Issue Details
The Board of Directors has approved the issuance of 16.84 crore fully paid-up equity shares at an issue price of Rs 11.86 per share, with a face value of Rs 2 per share. The entitlement ratio is set at 8 rights shares for every 25 shares held. The record date is June 12, 2026, with the issue opening on June 22, 2026, and closing on July 20, 2026. The last date for renunciation is July 15, 2026.
Utilisation of Proceeds
The net proceeds of Rs 194.90 crore will be deployed across four key areas:
- Working Capital Support (Rs 100.00 crore): To strengthen working capital requirements, support higher production volumes, and ensure efficient procurement of raw materials.
- Nakoda Asset Integration (Rs 49.90 crore): To facilitate the integration, operationalization, and ramp-up of acquired assets from Nakoda Limited, including a 140,000 Ton Per Annum Polyester Chips (CP) plant in Surat, Gujarat. The total capital outlay for this project is Rs 90.00 crore, with the balance funded through internal accruals. The facility is expected to be recommissioned in Q1 FY27-28.
- Debt Repayment (Rs 23.00 crore): To prepay existing borrowings, reduce finance costs, and strengthen the company’s balance sheet.
- 6.5 MW Solar Power Plant (Rs 22.00 crore): To establish a captive solar power plant, reduce energy costs, and enhance long-term energy security and sustainability.
Strategic Rationale
The capital allocation is focused on four pillars: manufacturing scale-up, asset integration, balance sheet strengthening, and energy security. These initiatives are expected to enhance operational resilience, improve resource efficiency, and strengthen the company’s long-term growth platform. The planned investments aim to bolster Sumeet Industries’ competitive positioning while supporting sustainable and profitable growth.
Management Commentary
Mr. Pratik R. Jaju, Managing Director of Sumeet Industries Limited, commented: “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 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 producing Pet Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Polyester Texturized Yarn. The company was taken over by the Eagle Group, the Successful Resolution Applicant, pursuant to the Hon'ble NCLT order dated July 16, 2024. The promoters of Eagle Group are seasoned technocrats with over 40 years of experience in the textile industry. Sumeet Industries operates a technologically advanced manufacturing facility with international-standard quality testing and R&D infrastructure. The Board has approved Phase 1 of the polyester yarn capacity expansion, adding 15,000 tonnes per annum with an investment of Rs 30 crore, aimed at strengthening the company's presence in the value-added synthetic yarn segment. The company also holds a 27% stake in HI-URJA TECHNO LLP, a solar power generating plant with an installed capacity of 14 MW, and is exploring further captive renewable energy sources. In FY26, the company recorded revenue of Rs 1,053.81 crore, EBITDA of Rs 60.77 crore, and Profit After Tax (including exceptional items) of Rs 27.33 crore.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same.)
