Sumeet Industries share price edged higher in Monday’s trading session as the ₹199.75 crore rights issue opens today. The stock opened at ₹26.51 apiece today, as compared to previous close of ₹25.84 on Friday. The stock touched an intraday high of ₹26.60 per share on NSE on 22 June.
Sumeet Industries rights issue details
In an exchange filing dated 19 June, Sumeet Industries announced a Rights Issue for its eligible shareholders aimed at enhancing financial flexibility and supporting the company’s strategic business priorities.
The Board of Directors of the company approved the terms of a Rights Issue aggregating to ₹199.75 crore through the issuance of ₹16.84 crore fully paid-up equity shares.
The shares are being offered at a price of ₹11.86, with a face value of ₹2 each. Eligible shareholders will be entitled to receive 8 rights shares for every 25 fully paid-up equity shares held as on the record date of June 12, 2026.
The rights issue opened for subscription on June 22 and will remain open until July 20. Shareholders who do not wish to subscribe to their entitlement may renounce their rights in favour of another investor until July 15, 2026. The issue is aimed at raising capital while providing existing shareholders an opportunity to increase their stake in the company at a predetermined price.
The company plans to utilize ₹49 crore from the proceeds of the rights issue to acquire and operationalise an additional 140,000 tonnes per annum (TPA) Polyester Chips (CP) plant purchased from Nakoda Limited in Surat, Gujarat. The project entails a total investment of ₹90 crore, with the remaining ₹41 crore to be financed through internal accruals.
The facility is expected to be recommissioned in the first quarter of FY27-28 and will enhance the company’s backward integration capabilities while supporting its downstream polyester manufacturing business.
According to the filing, the proposed capital allocation is focused on four key pillars – manufacturing scale-up, asset integration, balance sheet strengthening, and energy security. Together, these initiatives are expected to enhance operational resilience, improve resource efficiency, and strengthen the Company’s long-term growth platform. The planned investments are intended to strengthen Sumeet Industries’ competitive positioning while supporting sustainable and profitable growth over the long term.
“The Rights Issue marks an important milestone in Sumeet Industries’ growth journey and reflects our commitment to strengthening the Company’s operational and financial position. We are pleased to offer our existing shareholders an opportunity to participate in the Company’s future growth.
The proposed fund raise of ₹199.75 croe will support key strategic priorities, including working capital requirements, integration of acquired manufacturing assets, debt reduction, and investment in a captive solar power facility. A key focus area will be the operationalisation of the recently acquired Polyester Chips manufacturing facility from Nakoda Limited, which is expected to strengthen backward integration and enhance our integrated polyester value chain,” said Pratik R. Jaju, Managing Director of Sumeet Industries.
Sumeet Industries share price trend
The multibagger stock has remained positive in the near-term despite a volatile market amid ongoing geopolitical tensions. Sumeet Industries share price has given marginal gains of 2% in a week and 1.33% in a month.
On a year-to-date basis, the stock has gained over 1.33%. However, the stock has proven to be a multibagger stock by delivering nearly 157% returns in a year.
Looking at the broader level, Sumeet Industries share price has more than quadrupled investors’ money by delivering whopping 5,946% returns in just three years and 2,424% returns in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
