Stock Below Rs 30 Launches Rs 199.75 Crore Rights Issue At 54% Discount To CMP; Plans 1.4 Lakh TPA Capacity Expansion

On Monday, Indian equity benchmarks traded higher, with the benchmark Nifty 50 index rising 0.63 per cent to 24,164.10. Amid the positive market sentiment, Sumeet Industries share price traded at Rs 26.05, up 0.81 per cent from the previous close after the company announced a Rs 199.75 crore rights issue to support capacity expansion, debt reduction and renewable energy investments.

Sumeet Industries Announces Rs 199.75 Crore Rights Issue Approved

Sumeet Industries has approved a rights issue aggregating to Rs 199.75 crore through the issuance of 16.84 crore fully paid-up equity shares. The company has fixed an entitlement ratio of 8 rights shares for every 25 shares held, with the issue opening on June 22, 2026 and closing on July 20, 2026.

The rights issue is priced at Rs 11.86 per share, representing a discount of approximately 54.5 per cent to the current market price of Rs 26.05.

Funds To Be Utilised For Capacity Expansion And Debt Reduction

The company plans to deploy Rs 49 crore from the rights issue proceeds towards the acquisition and operationalisation of an additional 1,40,000 tonnes per annum polyester chips plant acquired from Nakoda Limited in Surat. The project involves a total capital outlay of Rs 90 crore, with the remaining Rs 41 crore to be funded through internal accruals. The facility is expected to be recommissioned in Q1 FY28.
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The net proceeds will also be used to strengthen working capital, reduce debt and improve energy security through a captive Solar power project.

Management Expects Growth Following Asset Integration

According to Managing Director Pratik R. Jaju, the proposed fund raise will support working capital requirements, integration of acquired manufacturing assets, debt reduction and investment in a captive solar power facility. He added that the company expects approximately 30 per cent growth in total income during FY27, with EBITDA margins in the range of 5 per cent to 6 per cent. Following the successful integration of the acquired facility, total income is expected to nearly double in FY28, while EBITDA margins are projected to improve to 5.5 per cent to 6.5 per cent.

About Sumeet Industries

Sumeet Industries is a Surat-based integrated polyester manufacturer engaged in the production of PET Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY) and Polyester Texturised Yarn. The company was taken over by the Eagle Group pursuant to an NCLT order in July 2024.

For FY26, the company reported revenue of Rs 1,053.81 crore, EBITDA of Rs 60.77 crore and profit after Tax of Rs 27.33 crore.

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