Investor Stitch-Up: Tuni Textile Unspools ₹490 Mn Rights Issue Amid Profit Surge

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Tuni Textile Mills Ltd has announced plans to raise up to ₹490 million through a rights issue, marking a strategic move to bolster its working capital and fund future growth initiatives. The decision was approved during the company’s 38th Annual General Meeting held on June 25, 2025.

Key Highlights:

Fundraising Mode: The capital will be raised via a rights issue, allowing existing shareholders to subscribe to additional shares at a predetermined price and ratio.
Purpose: Proceeds will be used to strengthen working capital, reduce debt exposure, and support operational expansion.
Shareholder Approval: The rights issue was greenlit through a special resolution passed with overwhelming majority during the AGM.
Strategic Timing: The move comes amid a 78% YoY jump in net profit for FY25 and a 23% rise in annual earnings, signaling improved fundamentals.
Market Sentiment: Despite short-term stock volatility, the rights issue is expected to improve liquidity and investor confidence.
Debt Management: The company aims to address its high Debt-to-EBITDA ratio and optimize capital structure through this infusion.

This capital raise reflects Tuni’s intent to stitch together a more resilient financial fabric, positioning itself for long-term sustainability in India’s competitive textile sector.

Source: Moneycontrol, Economic Times, Trendlyne