Sumeet Industries Raises Rs 200 Cr for Expansion, Solar

Mumbai, Jun 22 (PTI) Surat-based integrated polyester manufacturer Sumeet Industries Ltd is looking to raise nearly Rs 200 crore through a rights issue to fund plant acquisition and construction of a captive solar project and debt reduction, according to a statement.

The company launched the Rs 199.75-crore rights issue, comprising 16.84 crore equity shares, on Monday at a price of Rs 11.86 per share, the statement said, adding that the issue closes on July 20.

The company proposes to deploy Rs 49 crore from the rights issue proceeds towards the acquisition and operationalisation of an additional 140,000 tonne per annum polyester chips plant acquired from Nakoda Ltd in Surat, Gujarat.


The project involves a total capital outlay of Rs 90 crore, it said.

The company will also utilise the proceeds for funding working capital needs, debt repayment and setting up a 6.5 MW solar power plant to reduce power cost and improve energy security, it added.

The company is an integrated polyester manufacturer engaged in the production of pet chips, partially oriented yarn, fully drawn yarn and polyester texturised yarn.