4,200% multibagger returns from 52-week low & Promoters bought 9,45,60,193 shares: Board announces stock split from Rs 10 to Rs 2

Sumeet Industries Ltd. has approved a 1:5 stock split, meaning each existing equity share with a face value of Rs 10 will be subdivided into 5 new equity shares with a face value of Rs 2 each. This move aims to enhance liquidity and encourage wider participation from small investors by making the shares more affordable. The split will apply to all authorised, issued, subscribed, and fully paid-up equity shares. The process is expected to be completed within approximately three months from the date of shareholder approval, subject to necessary regulatory clearances. The record date for this subdivision will be determined by the Board after obtaining shareholder approval.

Sumeet Industries Ltd has strategically approved the acquisition of a 27 per cent stake in Hi-Urja Techno LLP for up to Rs 20 crore, aiming to procure 14.00 MW (DC) of solar power under a group captive scheme from its Gujarat plant. Concurrently, the company is expanding its FDY production capacity by 40 tons per day to a total of 160 tons per day with an investment of around Rs 22.50 crore, and replacing old air compressors with new ones at a capital cost of Rs 10.40 crore, projected to save approximately Rs 5 crore per annum in power costs. Furthermore, their ongoing captive solar project, initially planned for 30 MW at an approximate cost of Rs 105 crore, has been updated to a total of 34 MW, including the 14 MW from Hi-Urja Techno LLP and a 20 MW portion that has received Stage-II approval from GETO, with the 14 MW plant ready to commission this month.

About the Company

Sumeet Industries Ltd, incorporated in 1993, is a prominent Indian manufacturer and exporter of polyester chips and various polyester yarns, including POY, FDY, texturising yarn, and carpet yarn. The company operates manufacturing units in Surat, Gujarat, with a substantial installed capacity of 1,00,000 tons per annum for POY. Sumeet Industries has evolved into a diversified conglomerate, emphasising eco-friendly practices and continuous innovation to deliver quality yarns.

With a focus on total customer satisfaction and timely fulfilment of contracts, Sumeet Industries has established a strong reputation in the industry. Beyond its significant presence in the Indian market, the company actively engages in global polyester markets, exporting its products to a wide range of countries, including Egypt, China, Brazil, USA, and Turkey, showcasing its international reach and competitive standing.

On Wednesday, shares of Sumeet Industries Ltd hit a 2 per cent upper circuit to Rs 128.40 per share from its previous closing of Rs 125.90 per share. The stock has a 52-week high of Rs 138.91 per share and its 52-week low is Rs 2.98 per share. The company has a market cap of Rs 1,352 crore and the stock has given multibagger returns of over 4,200 per cent from its 52-week low. The Promoters bought 9,45,60,193 shares or 89.83 per cent stake in the company.

Disclaimer: The article is for informational purposes only and not investment advice.