Sumeet Industries rights issue: ₹200 crore for plant, debt, solar

Sumeet Industries is raising ₹200 crore through a rights issue. The board approved the issuance of ₹16.84 crore fully paid-up equity shares.

The company makes polyester chips, partially oriented yarn, fully drawn yarn, and textured yarn. It plans to spend ₹49 crore of the proceeds on a 140,000-tonne-per-annum polyester chips plant it bought from Nakoda in Surat, Gujarat. The total project cost is ₹90 crore; the remaining ₹41 crore comes from internal accruals. The plant is expected to restart in the first quarter of FY28.

Another ₹23 crore will repay debt. A 6.5 MW solar power plant will cost ₹22 crore. The rest, roughly ₹100 crore, goes to working capital.

Managing Director Pratik R Jaju said the fund raise supports working capital, integrating the acquired plant, cutting debt, and building the solar facility. He expects income to grow about 30% in FY27, with EBITDA margins of 5–6%. After full integration in FY28, income could nearly double, with margins improving to 5.5–6.5%.

The rights issue is open to existing shareholders. The record date and pricing have not been announced yet.