Details of the Rights Issue
Sumeet Industries Limited has successfully concluded its Rights Issue, which remained open for subscription from June 22, 2026, to July 20, 2026. The Board of Directors approved the allotment of 16,84,24,217 equity shares with a face value of ₹2 each, priced at ₹11.86 per share. This exercise has significantly expanded the company's capital base, with the paid-up equity share capital increasing from ₹105.27 crore to ₹138.95 crore.
The issue was structured to allow existing shareholders to participate in the company's growth journey following its recent corporate restructuring under the Eagle Group.
Strategic Use of Proceeds
- ₹100.00 Cr for strengthening working capital and raw material procurement
- ₹49.90 Cr for the operationalization and integration of the Nakoda CP Plant
- ₹23.00 Cr for the prepayment of borrowings to improve financial flexibility
- ₹22.00 Cr for setting up a 6.5 MW captive solar power plant in Surat
Capacity Expansion and Growth Strategy
A central component of the company's long-term strategy is the acquisition of a CP Plant from Nakoda Limited, currently under liquidation. Located in Surat, Gujarat, this facility has an installed manufacturing capacity of 140,000 TPA for Bottle Grade PET Chips. These chips serve as vital raw materials for the company's downstream production of Partially Oriented Yarn and Fully Drawn Yarn.
Sumeet Industries plans to modify and recommission the facility during Q1 FY27-28, a move expected to approximately double its existing production capacity while enhancing backward integration and overall operational efficiencies.
Corporate Turnaround and Performance
Following a takeover by the Eagle Group as the Successful Resolution Applicant in July 2024, Sumeet Industries has transitioned into a new growth phase. The company operates as a Surat-based integrated polyester manufacturer specializing in Pet Chips and various synthetic yarns. In the financial year 2026, the company recorded a revenue of ₹1,053.81 crore and an EBITDA of ₹60.77 crore.
The current expansion plans, including a ₹30 crore investment in Phase 1 of polyester yarn capacity addition, aim to strengthen its market presence in value-added synthetic yarn segments.
