Sumeet Industries Limited (NSE: SUMEETINDS, BSE: 514211) has announced a rights issue to raise ₹199.75 crore through the issuance of 16.84 crore fully paid-up equity shares. The issue price is set at ₹11.86 per share against a face value of ₹2 per share.

Rights Issue Details

The entitlement ratio is 8 rights shares for every 25 shares held. The record date is set for June 12, 2026. The issue opens on June 22, 2026, with the last date for renunciation being July 15, 2026, and closes on July 20, 2026.

Utilization of Proceeds

The net proceeds of ₹194.90 crore will be utilized as follows:

  • ₹100.00 crore for working capital support to facilitate higher production and raw material procurement
  • ₹49.90 crore for acquisition and operationalization of additional 140,000 TPA Polyester Chips Plant acquired from Nakoda Limited in Surat, Gujarat
  • ₹23.00 crore for prepayment of borrowings to reduce debt
  • ₹22.00 crore for a 6.5 MW solar power plant to reduce power cost and improve energy security

The Nakoda Limited asset acquisition involves a total capital outlay of ₹90.00 crore, with the balance ₹41.00 crore being funded through internal accruals. The facility is expected to be recommissioned in Q1 FY27-28.

Financial Performance and Guidance

In FY26, the company recorded revenue of ₹1,053.81 crore, EBITDA of ₹60.77 crore, and Profit After Tax (including exceptional item) of ₹27.33 crore.

Management guidance provided by Mr. Pratik R. Jaju, Managing Director, expects approximately 30% growth in Total Income during FY 2026-27 with EBITDA margins in the range of 5.0%–6.0%. Following 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%.

Corporate Background

The company was incorporated in 1988 and was taken over by the Eagle Group, Successful Resolution Applicant, pursuant to 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.

The company has also invested 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant with installed capacity of 14 MW as a Captive consumer. 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 crore.