Rights Issue Overview
Tuni Textile Mills Limited is launching a rights issue of 48,98,66,250 fully paid-up Equity Shares of face value ₹1 each to raise ₹489.87 crore. The issue offers 15 Rights Equity Shares for every 4 fully paid-up Equity Shares held as of the record date of September 16, 2026, at an issue price of ₹1 per share (at par).
Issue Schedule and Structure
- Issue Opening Date: September 28, 2026
- Issue Closing Date: October 26, 2026
- Finalization of Allotment: October 27, 2026
- Listing Date: October 29, 2026
- Pre-Issue Capital: ₹1,306.31 lakhs (13,06,31,000 shares)
- Post-Issue Capital: ₹6,204.97 lakhs (62,04,97,250 shares) assuming full subscription
Utilization of Proceeds
Proceeds will be allocated as follows:
- Loan Repayment/Pre-payment: ₹105.48 crore (21.71%)
- Working Capital: ₹222.13 crore (45.72%)
- Machinery Upgradation: ₹35.07 crore (7.22%)
- Factory Renovation: ₹28.58 crore (5.88%)
- General Corporate Purposes: ₹94.61 crore (19.47%)
- Issue Expenses: ₹40.00 lakhs
Promoter Participation and Risk Factors
Promoters Narendra Kumar Sureka and Pradeep Kumar Sureka have indicated they will not subscribe fully to their rights entitlement and may renounce their rights, potentially leading to under-subscription. The document includes extensive risk factors covering business risks, issue-specific risks, and external risks.
Investor Eligibility and Compliance
The document outlines comprehensive eligibility criteria requiring investors to be outside the United States when the offer was made, with representations that investment is for investment purposes only. All equity shares will be allotted in dematerialized form only. The company confirms full compliance with Companies Act 2013 and SEBI regulations, with neither the company nor its promoters/directors being wilful defaulters.
Material Contracts and Documents
Key agreements include Registrar Agreement, Escrow Agreement, Monitoring Agency Agreement, and Tripartite Agreements with NSDL and CDSL. Material documents available for inspection include Memorandum and Articles of Association, Board resolutions, consents from various parties, annual reports, and in-principle listing approval from BSE Limited.
Financial Information
Based on audited financials for year ended March 31, 2026:
- Net Profit Before Tax: ₹35.82 lakhs
- Net Profit After Tax: ₹26.50 lakhs
- Basic EPS: ₹0.02
- Return on Networth: 1.74%
- Net Asset Value per share: ₹1.17
Key Intermediaries and Signatories
- Registrar to Issue: Purva Sharegistry (India) Private Limited
- Banker to Issue: Kotak Mahindra Bank Limited
- Monitoring Agency: Infomerics Valuation and Rating Private Limited
- Signed by Directors and Key Managerial Personnel including Urmiladevi Sureka, Mahendra Shyambihari Agarwal, Gaurishankar Ramlal Saraf, Gaurav Ganesh Tibe, Archit Pradeep Sureka, and Jyoti Kothari