– By Dilip Davda
- This is the 2nd RI from the company since September 2025.
- The company 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, it’s a high risk/low return bet.
- Well-informed/cash surplus investors may park moderate funds for long term.
ABOUT COMPANY:
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 company’s 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 India’s 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 — such as pick-and-pick, chambray, fil-à-fil, poly-viscose, cotton-linen, and twills — 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:
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, company’s 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.
FINANCIAL PERFORMANCE:
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 weeks’ it has posted a high/low of Rs. 2.10 / Rs. 0.69.
The promoters’ 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, it’s a high risk/low return bet. Well-informed/cash surplus investors may park moderate funds for long term.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
