The ₹199.75 crore rights issue of Sumeet Industries officially opened for subscription today, with the stock opening at ₹26.51 per share compared to the previous close of ₹25.84 on Friday. The stock touched an intraday high of ₹26.60 per share on NSE on June 22. According to the company's exchange filing dated June 19, eligible shareholders are entitled to receive 8 rights shares for every 25 fully paid-up equity shares held as on the record date of June 12, 2026. The rights issue will remain open until July 20, 2026, with shareholders having until July 15, 2026 to renounce their entitlements.
The rights issue is being offered at a price of ₹11.86 per share with a face value of ₹2 each. As per the company's announcement, the shares are being issued through the issuance of ₹16.84 crore fully paid-up equity shares. The issue aims to raise capital while providing existing shareholders an opportunity to increase their stake in the company at a predetermined price. The proposed capital allocation is focused on four key pillars - working capital enhancement, Nakoda asset operationalization, debt prepayment, and 6.5 MW solar facilities. The company has potential net proceeds of approximately ₹194.90 crore from the rights issue.
The company proposes to deploy ₹49 crore from the rights issue proceeds towards the acquisition and operationalization of an additional 140,000 tonne per annum polyester chips plant acquired from Nakoda Ltd in Surat, Gujarat. As reported by Moneycontrol, the project involves a total capital outlay of ₹90 crore, with the balance ₹41 crore being funded through internal accruals. The facility is expected to be recommissioned in Q1 FY27-28 and will strengthen backward integration capabilities while supporting the company's downstream polyester manufacturing operations. The company has also invested a 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant, which has an installed capacity of 14 MW as a Captive consumer.
According to Pratik R. Jaju, Managing Director of Sumeet Industries, the proposed fund raise will support key strategic priorities including working capital requirements, integration of acquired manufacturing assets, debt reduction, and investment in renewable energy infrastructure. The operationalisation of the recently acquired polyester chips manufacturing facility from Nakoda Limited is expected to strengthen backward integration and enhance the integrated polyester value chain. The company has also approved Phase 1 of polyester yarn capacity expansion, involving an addition of 15,000 tonnes per annum with an investment of ₹30 crore, aimed at strengthening the company's presence in the value-added synthetic yarn segment. The company recorded revenue of ₹1,053.81 crore, EBITDA of ₹60.77 crore, and Profit After Tax of ₹27.33 crore in FY26. As of mid-June 2026, the stock trades around ₹25-26, with a market capitalization of approximately ₹1,795-1,830 crore and promoter holding at a high of around 89.83%.
