Tuni Textile Mills Rights Issue 2026 Review ā Well-informed/Cash Surplus Investors May Park Moderate Funds for Long Term
Tuni Textile Mills Ltd., (TTML) is engaged in the manufacturing of high-quality shirting fabrics in India. The Company primarily operates in the business-to-business (B2B) segment, supplying premium fabrics to several well-established Indian brands. TTML has over the years evolved into a manufacturing and trading enterprise with a business model focused on quality, innovation, and customer satisfaction.
The company has a rich history spanning over three decades in the domestic textile industry. Established in 1987 and headquartered in Mumbai, the company specializes in the manufacture of high-quality synthetic grey fabrics for shirting, suiting, uniforms, and casual wear. Its state-of-the-art weaving facility at MIDC Murbad is equipped with advanced European rapier looms and auxiliary machinery, enabling an annual production capacity of 2.70 million meters of fabric. This capacity, combined with the companyās commitment to innovation, stringent quality control, and on-time delivery, has earned it a strong reputation as a trusted supplier of premium fabrics to some of Indiaās most respected brands, leading garment exporters, and uniform manufacturers.
A customer-centric company at its core, TTML has successfully carved out its niche as a responsive, design-driven manufacturer. Its product range spans a diverse spectrum of weaves and blends ā such as pick-and-pick, chambray, fil-Ć -fil, poly-viscose, cotton-linen, and twills ā allowing it to serve a variety of market needs. Beyond weaving, the company enhances its value proposition through an integrated business model that includes in-house design and product development, as well as flexible order fulfillment through job-work and trading arrangements. The offer document is silent on its human resources strength.
Issue Details / Capital History
The company is coming out with its Rights Issue (RI) of 489866250 equity shares of Re. 1 each at a par value to mobilize Rs. 48.99 cr. The RI has already opened for subscription on September 28, 2026, and will close on October 26, 2026. The company is offering RI in the ratio of 15 for 4 to its eligible stakeholders as of the record date of September 16, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.40 cr. for this RI process, from the net proceeds, Rs. 10.55 cr. for repayment/prepayment of certain borrowings, Rs. 22.21 cr. for working capital, Rs. 2.86 cr. for repairing/replacement of industrial shed and other strengthening work, Rs. 3.51 cr. for upgradation of existing machineries, and Rs. 9.46 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue.
Post-RI, companyās current paid-up equity capital of Rs. 13.06 cr. (130631000 equity shares) will stand enhanced to Rs. 62.05 cr. (620497250 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 62.05 cr.
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit of Rs. 76.69 cr. / Rs. 0.57 cr. (FY24), Rs. 114.84 cr. / Rs. 0.61 cr. (FY25), Rs. 22.78 cr. / Rs. 0.20 cr. (FY26). For Q1 of FY27 ended on June 30, 2026, it earned a net profit of Rs. 0.27 cr. on a total revenue of Rs. 23.47 cr. Its NAV stood at Rs. 1.17 as of June 30, 2026. The company marked inconsistency in its top and bottom lines for the reported periods.
Dividend Policy
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy.
Scrip Performance: Based On Bse Website Data: Scrip Code: 531411 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.30 on September 15, 2026, and opened on an ex-right basis at Rs. 1.16 on September 16, 2026. Since then, it has marked a high/low of Rs. 2.00 / Rs. 1.16. The scrip last closed at Rs. 2.00 as of September 29, 2026. For the last 52 weeksā it has posted a high/low of Rs. 2.10 / Rs. 0.69.
The promotersā holding has been constant at 21.73%L for the last three quarters ended on June 30, 2026. The counter is well maintained above the RI price to tempt investors. The counter is being rigged by vested interests since its ex-right status.
Conclusion
This is the 2nd RI from the company since September 2025. TTML is a high quality shirting fabrics manufacturer in India, with over 30 years of existence. The company posted lack luster financial performances for the reported periods. It is operating in a highly competitive and fragmented segment. Though the RI is at par value, itās a high risk/low return bet. 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.
