Rights Issue Details

  • Allotment Approved: 16,84,24,217 Equity Shares of face value ₹2 each
  • Issue Price: ₹11.86 per Equity Share
  • Total Issue Size: ₹199.75 Crore
  • Rights Ratio: 8 Rights Equity Shares for every 25 fully paid-up Equity Shares held
  • Issue Period: June 22, 2026 to July 20, 2026

Capital Structure Impact

  • Pre-issue paid-up capital: ₹105.27 Crore (52,63,25,680 Equity Shares of ₹2 each)
  • Post-issue paid-up capital: ₹138.95 Crore (69,47,49,897 Equity Shares of ₹2 each)
  • Capital increase: ₹33.68 Crore

Utilization of Net Proceeds

  • ₹100.00 Crore towards strengthening working capital for higher production levels and raw material procurement
  • ₹49.90 Crore towards general corporate purposes for operationalization and integration of the CP Plant acquired from Nakoda Limited (Under Liquidation)
  • ₹23.00 Crore towards prepayment of borrowings to improve financial flexibility
  • ₹22.00 Crore towards setting up a 6.5 MW captive solar power plant to reduce power costs and improve energy security

Nakoda CP Plant Acquisition and Expansion

  • Acquired CP Plant under liquidation from Nakoda Limited located in Surat, Gujarat
  • Installed manufacturing capacity: 140,000 TPA for Bottle Grade PET Chips
  • Planned recommissioning: Q1 FY27-28 (April-June 2027)
  • Expected impact: Approximately double the company's existing production capacity
  • Strategic benefits: Improved backward integration, enhanced operational efficiencies, and support for future revenue growth

Management Commentary

Mr. Pratik R. Jaju, Managing Director, commented on the successful completion and thanked shareholders for their participation. He stated the capital will accelerate strategic priorities including Nakoda CP Plant operationalization while strengthening working capital and balance sheet.

Company Background

  • Incorporated in 1988, Surat-based integrated polyester manufacturer
  • Produces Pet Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Polyester Texturized Yarn
  • Taken over by Eagle Group (Successful Resolution Applicant) per NCLT order dated 16 July 2024
  • Promoters have over 40 years of experience in textile industry

Recent Financial Performance (FY26)

  • Revenue: ₹1,053.81 Crore
  • EBITDA: ₹60.77 Crore
  • Profit After Tax (Including Exceptional Item): ₹27.33 Crore

Other Strategic Initiatives

  • Board approved Phase 1 polyester yarn capacity expansion: 15,000 TPA with investment of ₹30 Crore
  • Holds 27% stake in HI-URJA TECHNO LLP (14 MW Solar Power Generating Plant as captive consumer)
  • Focusing on developing value-added yarns, Bright and dope dyed yarn

Disclaimer

Contains forward-looking statements subject to risks and uncertainties including government actions, economic developments, and technological risks. Company undertakes no obligation to update these statements.