Sumeet Industries Limited (NSE Code: SUMEETINDS, BSE Code: 514211), one of the leading integrated polyester manufacturers engaged in the production of PET chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Polyester Texturized Yarn, has announced a Rights Issue for its eligible shareholders aimed at enhancing financial flexibility and supporting the Company’s strategic business priorities.
The Board of Directors of Sumeet Industries Limited has approved the terms of a Rights Issue aggregating to ₹199.75 Cr, comprising the issuance of ₹16.84 Cr of fully paid-up equity shares.
The Company proposes to deploy ₹49.00 Cr from the Rights Issue proceeds towards the acquisition and operationalisation of 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 |
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, expand manufacturing capabilities. 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 company has also invested a 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant with an installed capacity of 14 MW, as a Captive consumer, and has been sourcing solar. Apart from this, the company has also been considering sourcing 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 yarns, and expanding 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.
Management Commentary
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. 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%.”
