Tuni Textile BSE RI review - (Not Rated)

•    The company is in the business of trading and manufacturing shirting fabrics in India.
•    It posted small growth in its top and bottom lines for the reported periods.
•    It is operating in a highly competitive and fragmented segment.
•    The counter is well managed above the par value to tempt investors as its financial data and other parameters are indicating it as a costly at par bet.
•    There is no harm in skipping this at par but “High Risk/Low Return” bet.

ABOUT COMPANY:
Tuni Textile Mills Ltd. (TTML) is engaged in the business of manufacturing shirting fabrics in India. The Company primarily operates in the business-to-business (B2B) segment and supplies high quality fabrics to several well-established Indian brands. Over the years, the Company has evolved into a manufacturing and trading enterprises, with a business model centered on quality, innovation, and customer satisfaction.

The Company commenced its operations in 1987 as a trading enterprise and subsequently undertook a public offering in the year 1992, pursuant to which its equity shares were listed on the Bombay Stock Exchange (BSE). As of the date hereof, TTML operates a fully-equipped weaving facility located at Murbad, Maharashtra. The said manufacturing unit comprises 44 rapier looms along with modern preparatory equipment, enabling a monthly production capacity of approximately 225,000 meters of grey fabric. The Company’s operational infrastructure is aligned with industry standards and is geared towards ensuring consistent product quality and timely delivery to its clients.

The company is operating in a highly competitive and fragmented segment, and hence posting low profit margins with continuing pressure. The offer document is silent on its employees’ strength.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 423244440 equity shares of Re. 1 each at par value to mobilize Rs. 42.32 cr. The RI opens for subscription on November 24, 2025, and will close on December 08, 2025. The company is offering RI in the ratio of 81 for 25 to its eligible stakeholders as of the record date of November 15, 2025. The company is asking for full money) on application for the number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 0.50 cr. for this RI process, and from the net proceeds, it will utilize Rs. 8.38 cr. for part repayment/prepayment of certain loans, Rs. 4.67 cr. for capex on renovation/repairs of Industrial shed, Rs. 13.72 cr. for working capital, Rs. 5.65 cr. for upgradation of existing machinery, purchase of new machinery etc., and Rs. 9.90 cr. for general corporate purposes. 

The RI is self-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. will stand enhanced to Rs. 55.39 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 55.39 cr. Over three fold jump in post-RI equity hints at its servicing issue going forward.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit/ - (loss), of Rs. 42.96 cr. / Rs. 0.26) cr. (FY23). Rs. 56.50 cr. / Rs. 0.32 cr. (FY24), and Rs. 76.50 cr. / Rs. 0.57 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 0.78 cr. on a total revenue of Rs. 52.68 cr. It posted growth in its top and bottom lines for the reported periods, but the rise in net profit is on a minuscule level, indicating expanded capital servicing issue going forward. Its NAV stood at Rs. 1.06 as of March 31, 2025.

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 531411 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.29 on November 13, 2025, and opened on an ex-right basis at Rs. 1.30 on November 14, 2025. Since then, it has marked a high/low of Rs. 1.34 / Rs. 1.23. The scrip last closed at Rs. 1.28 as of November 20, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 1.48 / Rs. 0.85. The counter is currently under ASM LT: Stage 1.

The promoters’ holding has been constant at 21.73% for the last three quarter ended with September 30, 2025. The counter is well maintained above the par value by vested interests to tempt investors.