Sumeet Industries Ltd., (SIL) erstwhile known as Sumeet Synthetics Ltd., initially focused on manufacturing and exporting synthetic yarn, the company established its first manufacturing facility for Polypropylene Multifilament Yarn (āPPMFYā) in 1993. Over the years, the Company expanded its PPMFY capacity by approximately 2.6 times in 1997ā98 to meet growing demand. In 2004, as part of a backward integration strategy, it set up a Polyester Filament Yarn (āPFYā) manufacturing facility with an annual capacity of 12,000 tons, using state-of-the-art technology from Barmag, Germany. As part of its commitment to sustainable growth, the company also installed a coal-based captive power plant in 2004, which was later converted to a gas-based plant to address environmental concerns and rising coal costs.
In 2005, the company expanded its product offerings by setting up a weaving division equipped with high-speed Waterjet Looms imported from Tsudakoma, Japan, with a capacity to produce 3.5 million meters of woven fabric annually. Diversifying further, it established a Menthol Distilling & Crystallizing plant in 2006, with an annual capacity of 900 metric tons of peppermint oil and 300 metric tons of menthol crystals. This step enabled it to enter the production of value-added products, and the Indian government recognized the company as a Star Export House.
Over the years, it has continuously invested in modernizing operations. In 2009, it commissioned a 100,000 Tons Per Annum (āTPAā) Continuous Polymerization Plant and a 6 MW gas-based Captive Power Plant. In 2010, the company expanded production with the commissioning of a 23,500 TPA Polyester Filament Yarn Plant and a 21,000 TPA Fully Drawn Yarn (āFDYā) Plant. By 2012, it doubled spinning capacity to 1,00,000 TPA and added an 8.6 MW captive genset power plant. SILās focus on sustainability continued in 2013 when it commissioned a 5,400 TPA waste recycling plant, and further upgraded its FDY production capacity to 51,450 TPA. Building on this momentum, the 1,00,000 TPA Continuous Polymerization Plant enabled the production of high-quality PET Chips, a critical raw material for polyester yarn lines. This backward integration solidified its position as a leading integrated polyester manufacturer, with PET Chips output exceeding 1,00,000 tons annually. In the past, this capacity supported exports to over 20 global markets across Asia, Latin America, the Middle East, and Africa, including Italy, Argentina, Vietnam, Indonesia, Bangladesh, Mexico, Greece, Algeria, Kenya, Colombia, Peru, Egypt, Brazil, and Turkey.
In 2014, the company enhanced ability to produce texturized yarns with the addition of four new texturizing machines, bringing its capacity to 7,200 TPA. SIL also upgraded FDY line to manufacture Bright and Coloured FDY yarns and installed 25 TFO machines dedicated to plying and twisting carpet yarns. In 2016, It took another step toward sustainability by commissioning a 4.80 MW furnace oil-based captive genset power plant, with plans for further expansion.
On July 16, 2024, the resolution plan proposed by the Eagle Group (which is also active in the textile and apparel manufacturing and trading sector) for acquiring Sumeet Industries Ltd received approval from the NCLT Ahmedabad bench.
The Board of the Company recently approved strategic investment for a 27% stake in Hi-Urja Techno LLP, a solar power firm, enabling captive renewable energy sourcing via a Power Purchase Agreement for 11 MW from its Gujarat plant. Furthermore, the board also approved strategic investment for 27% in Bajrang Green Energy One Pvt. Ltd. a wind Power generating company enabling wind captive power by entering Power Purchase agreement for 4.2 MW to be sourced from its Guajarati Plant. As of April 30, 2026, it had 618 employees on its payroll, and additional 314 contract workers in various departments.
The company is coming out with its 2nd Rights Issue (RI) of 168424218 equity shares of Rs. 2 each at a fixed price of Rs. 11.86 per share to mobilize Rs. 199.75 cr. The RI opens for subscription on June 22, 2026, and will close on July 20, 2026. The company is offering RI in the ratio of 8 for 25 to its eligible stakeholders as of the record date of June 12, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 4.85 cr. for this RI process, from the net proceeds, it will utilize Rs. 100.00 cr. for working capital, Rs. 22.00 cr. for capex on setting up of solar power plant, Rs. 23.00 cr. for repayment/prepayment of certain outstanding borrowings, Rs. 49.90 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and Bigshare Services Pvt. Ltd. is the registrar to the issue.
Post-RI, companyās current paid-up equity capital of Rs. 105.27 cr. will stand enhanced to Rs. 138.95 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 823.97 cr.
On the financial performance front, for the last four fiscals, the company has posted total income / net profit/ -(loss), of Rs. 1033.12 cr. / Rs. ā (63.75) cr. (FY23), Rs. 984.86 cr./ Rs. ā (63.47) cr. (FY24), Rs. 1003.37 cr. / Rs ā (9.33) cr. (FY25), Rs. 1050.42 cr. / Rs. 31.60 cr. (FY26). It just turned the corner for FY26 after posting losses for earlier three fiscals. Its NAV stood at Rs. 3.18 as of March 31, 2026.
All amounts in Indian Rupees crores
| Year | Revenue | Expense | PAT |
|---|---|---|---|
| 2024 | ā¹985.71 | ā¹1,049.17 | ā¹59.01 |
| 2025 | ā¹1,005.74 | ā¹1,015.43 | ā¹151.01 |
| 2026 | ā¹1,053.81 | ā¹1,022.22 | ā¹23.61 |
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
The scrip last closed on cum-right basis at Rs. 27.72 on June 11, 2026, and opened on an ex-right basis at Rs. 23.38 on June 19, 2026. Since then, it has marked a high/low of Rs. 26.91/ Rs. 23.06. The scrip last closed at Rs. 25.81 as of June 19, 2026. For the last 52 weeksā it has posted a high/low of Rs. 34.91 / Rs. 9.06.
The promotersā holding has been constant around 89.83% for the last three quarters ended on March 31, 2026. The counter is trading above the RI price indicating vested interest operations.
This is the 2nd RI from SIL since December 2017. The company under went many ups and downs in its history so far. For the last four fiscals, while it posted inconsistency in its top lines, it just turned the corner in FY26. Based on its recent financial data, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds for long term.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
