Unitec Fibres Limited / Unitec Fibres Limited IPO: Compelling Business & Offering Overview

Unitec Fibres Limited

(Updated as of September 2026)

Company Overview

Incorporated in February 2005, Unitec Fibres Limited is a manufacturer of Recycled Polyester Staple Fibre (RPSF). The company processes post-consumer plastic waste, including recycled PET flakes and PET chips, to produce eco-friendly, sustainable polyester fibers.

The manufactured fibers cater to diverse industrial applications:

• Automotive: Used in vehicle carpeting, headliners, trunk liners, and acoustic insulation felts.

• Home Furnishings & Textiles: Applied in upholstery, curtains, cushion filling, and yarn spinning.

• Revenue Breakdown: Approximately 82.61% of FY26 revenue was driven by the automotive and home furnishing segments.

Manufacturing Capabilities & Infrastructure

• Existing Facilities: Operates 2 manufacturing plants located in the M.I.D.C. Tarapur Industrial Area, Maharashtra, with a combined installed capacity of 27,984 MTPA (~90.85% capacity utilization in FY26).

• Expansion Plans: Setting up a 3rd manufacturing facility in Valsad, Gujarat to further expand production capacity.

• Global Certifications: Compliant with international standards including ISO 9001:2015, ISO 14001:2015, OEKO-TEX®, and the Global Recycled Standard (GRS).

Financial & Operational Highlights (FY26 / RHP Data)DRHP

• Workforce: Employs 171 permanent personnel as of March 31, 2026.

• Order Book: Holds confirmed pending orders worth ₹19.03 Crore (excluding taxes) as of September 10, 2026.

• Financial Performance (FY26): Reported total revenue of ₹224.86 Crore and a Profit After Tax (PAT) of ₹7.60 Crore.

IPO Structure & Timetable (BSE SME)

• IPO Dates: Opens Wednesday, September 23, 2026 – Closes Friday, September 25, 2026

• Price Band: ₹83 to ₹88 per share

• Lot Size: 1,600 shares (Minimum Retail Application: 2 lots / 3,200 shares amounting to ₹2,81,600)

• Total Issue Size: 39,16,800 equity shares (Aggregating up to ₹34.47 Crore)

• Objects of the Issue: Out of the net proceeds, ₹31.00 Crore will be allocated toward the repayment/prepayment of existing debt, significantly improving the company’s leverage ratio.

Key Competitive Strengths

1. Eco-Friendly Product Portfolio: Sustainable recycling processes aligned with global green initiatives.

2. Robust Manufacturing Base: Proven 27,984 MTPA capacity with active expansion in Gujarat.

3. Quality & Standard Assurance: Backed by recognized certifications (GRS, ISO, OEKO-TEX®).

4. Experienced Leadership: Promoters bring over two decades of domain expertise.

5. Healthy Order Book: Long-standing client relationships supported by ₹19.03 Cr in confirmed orders.

Unitec Fibres Limited IPO: Compelling Business & Offering Overview

Unitec Fibres Limited is launching its Book Building Public Offering to raise funds on the BSE SME platform.

2. Key Offer Timetable (Tentative Schedule)

The subscription and listing schedule for the issue follows standard settlement timelines:

• IPO Opening Date: Wednesday, September 23, 2026

• IPO Closing Date: Friday, September 25, 2026

• Finalization of Allotment: Monday, September 28, 2026

• Initiation of Refunds: Monday, September 28, 2026

• Credit of Shares to Demat: Tuesday, September 29, 2026

• Tentative Listing Date: Wednesday, September 30, 2026

3. Shareholding Pattern & Investor Reservation Structure

The issue comprises a total of 39,16,800 equity shares. Out of these, 2,00,000 shares are reserved for the Market Maker (Shreni Shares Ltd.), leaving a Net Public Issue of 37,16,800 equity shares.

Total Issue Size: 39,16,800 Shares
 ├── Market Maker Reservation: 2,00,000 Shares (5.11%)
 └── Net Offer to Public: 37,16,800 Shares (94.89%)
      ├── QIB Portion: 18,48,000 Shares (49.72% of Net Issue)
      │    ├── Anchor Portion: 11,07,200 Shares (28.27%)
      │    └── Net QIB Portion: 7,40,800 Shares (18.91%)
      ├── NII (HNI) Portion: 5,63,200 Shares (15.15% of Net Issue)
      │    ├── Big HNI (> ₹10L): 3,76,000 Shares (9.60%)
      │    └── Small HNI (< ₹10L): 1,87,200 Shares (4.78%)
      └── Retail Portion (RII): 13,05,600 Shares (35.13% of Net Issue)

Promoter Shareholding Shift:

• Pre-IPO Shareholding: 94.20% (1,05,01,778 shares)

• Post-IPO Shareholding: 68.61% (1,44,18,578 shares)

4. Lot Size & Investment Requirements

Retail investors must bid for a minimum of 2 lots (3,200 shares) due to SME minimum subscription guidelines.

5. Company Overview & Core Business

Incorporated in February 2005, Unitec Fibres Limited is a manufacturer of Recycled Polyester Staple Fibre (RPSF).

• Business Process: Converts discarded PET flakes, PET chips, and post-consumer plastic waste into sustainable polyester fibers.

• Applications & Target Markets:

  • Automobiles: Used in car carpets, roof liners, trunk liners, and acoustic felts.

  • Home Furnishings: Applied in sofas, curtains, cushion fills, and high-loft wadding.

  • Textiles & Non-wovens: Processed for yarn spinning, fashion fibers, HVAC filtration, and geotextiles.

• Manufacturing Facilities: Operates two units in M.I.D.C. Tarapur Industrial Area, Maharashtra, with a total installed capacity of 27,984 MTPA (achieving ~90.85% capacity utilization). A third unit is being set up in Valsad, Gujarat to scale up operations.

• Certifications: Holds ISO 9001:2015, ISO 14001:2015, OEKO-TEX®, and Global Recycled Standard (GRS) certifications.

• Workforce: Employs 171 permanent personnel as of March 31, 2026.

6. Company Financial Metrics (Restated)

(All figures in ₹ Crores unless stated otherwise)

Financial Ratios & KPIs (FY26)

• PAT Margin: 3.39%

• EBITDA Margin: 7.03%

• Return on Equity (ROE): 12.41%

• Return on Capital Employed (ROCE): 9.05%

• Debt / Equity Ratio: 1.19x (increased from 0.64x in FY25 due to borrowing additions)

• Net Asset Value (NAV): ₹61.89 per share

• Price-to-Book Value (P/B): 1.61x

• Post-IPO P/E Ratio: 16.7x (at upper price band)

• Post-IPO EPS: ₹5.27

7. Objects of the Issue

The primary objective of raising fresh equity capital is balance sheet deleveraging.

1. Repayment or Prepayment of Borrowings: Allocation of ₹31.00 Crore towards debt repayment. This will reduce interest burdens and lower the debt-equity ratio significantly.

2. General Corporate Purposes: Allocation of remaining proceeds (approx. ₹3.47 Crore) for operational requirements, business development, and working capital needs.

8. Key Business Strengths vs. Major Risks

Key Strengths:

• Eco-Friendly Market Focus: High demand growth in recycled polyester and green manufacturing solutions.

• Expanding Infrastructure: Proven capacity of ~28k MTPA with expansion under development in Gujarat.

• Global Certifications: High standards compliant with GRS, ISO, and OEKO-TEX®.

• Promoter Experience: Management brings nearly two decades of domain experience in industrial recycling.

Associated Risks:

• Debt Dependence: High debt buildup reaching ₹77.19 Cr in FY26.

• Input Price Volatility: RPSF manufacturing profitability is linked to crude oil derivatives and plastic waste availability.

• Segment Concentration: Automobile and home-furnishing sectors generate over 80% of revenue.

9. Intermediaries & Key Contact Details

• Book Running Lead Manager (BRLM): Smart Horizon Capital Advisors Pvt. Ltd.

• Registrar to the Issue: Bigshare Services Pvt. Ltd. (Phone: 022-62638200 / Email: ipo@bigshareonline.com)

• Market Maker: Shreni Shares Ltd.

• Company Registered Address: Building No. 8, Flat No. 3, Oshiwara MADA Complex, Andheri (W), Mumbai, Maharashtra – 400053.