Sumeet Industries board approves rights issue of Rs 199.75 cr

Sumeet Industries has announced a rights issue for its eligible shareholders aimed at enhancing financial flexibility and supporting the Company's strategic business priorities.

The board of Sumeet Industries has approved the terms of a rights issue aggregating to Rs 199.75 crore through the issuance of Rs 16.84 crore fully paid-up equity shares. The company proposes to deploy Rs 49 crore from the rights issue proceeds towards the acquisition and operationalisation of additional 140,000 Ton Per Annum Polyester Chips (CP) plant acquired from Nakoda in Surat, Gujarat.

The project involves a total capital outlay of Rs 90 crore; with the balance Rs 41 crore being funded through internal accruals. Expected to be recommissioned in Q1 FY27 28, the facility will strengthen backward integration and support the company's downstream polyester manufacturing operations.