A Tarapur-based recycled-polyester-fibre maker opens its Rs 34.47 crore BSE SME issue on September 23
Unitec Fibres Ltd (UFL) operates in the sustainable-materials space — the manufacture of Recycled Polyester Staple Fibre (RPSF), a fibre created from recycled polyester raw materials. It’s a play on the circular economy and rising demand for eco-friendly, recycled inputs.
Its process begins with procuring PET flakes, PET chips and other polyester waste (largely from discarded plastic bottles and post-consumer waste streams), which are converted into raw inputs, spun into fibre, and processed to meet customer requirements for properties like colour, denier and density.
UFL offers hollow, solid, dope-dyed and down-type polyester staple fibres (0.9 to 20 denier), finding applications across automobiles (carpets, roof liners, trunks), home furnishing (sofas, curtains, carpets), non-woven fabrics and textiles (spinning mills).
The sustainability credentials and a secondary revenue stream stand out. UFL holds ISO 9001:2015, ISO 14001:2015, OEKO-TEX and Global Recycled Standard (GRS) certifications — important for winning repeat B2B orders from large, audit-driven customers — and generates additional revenue through Extended Producer Responsibility (EPR) certificates from its recycling operations, plus government incentives like duty drawbacks. That EPR credit can cushion cash needs when core product demand slows.
The operating base is Tarapur, with expansion underway. UFL runs two operational units at MIDC Tarapur (Palghar, Maharashtra) on MIDC-leased land, with a combined installed capacity of 27,984 MTPA and high utilisation (~90.85% in FY26).
It has acquired ~47,494 sq m in Valsad, Gujarat, to set up a third RPSF line (Unit 3). One structural feature: it relies on transactional purchase orders without long-term contracts, sourcing raw materials from local vendors. It had 171 employees plus 116 contract labourers as of March 31, 2026, with two-decades-experienced promoters.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 23, 2026 |
| Issue Closes | September 25, 2026 |
| Listing | BSE SME |
| Listing Date | September 30, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 83 – Rs 88 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 34.47 crore (39,16,800 shares, entirely fresh) |
| Min. Application | 3,200 shares (2 lots; multiples of 1,600 thereafter) |
| Min. Retail Investment | Rs 2,81,600 |
| Post-IPO Market Cap | Rs 126.88 crore |
| IPO as % of Post-IPO Capital | 27.16% |
| Lead Manager | Smart Horizon Capital Advisors Pvt. Ltd. |
| Market Maker | Shreni Shares Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
The issue is entirely a fresh issue. From the net proceeds, UFL will utilise Rs 31.00 crore for repayment or prepayment of certain borrowings, with the rest for general corporate purposes — a debt-reduction-focused use of proceeds, which should reduce finance costs and strengthen the balance sheet.
Post-IPO, paid-up equity capital rises from Rs 10.50 crore to Rs 14.42 crore. On capital history, the company issued further equity in the Rs 42–100 range between March 2010 and February 2021; the promoters’ average cost of acquisition is missing from the offer document.
Price Band
At the upper band of Rs 88, on FY26 earnings the issue is valued at a P/E of about 16.70x, with a P/BV of just 1.42 on the March 31, 2026 NAV of Rs 61.89 (post-IPO NAV disclosure is missing).
GMP
Grey-market interest has been flat. As of the days around opening, the Unitec Fibres IPO GMP stood at ₹0 — trackers recording no premium, offering no directional signal on listing-day demand.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 204.99 | 227.13 | 224.86 |
| Net Profit (PAT) | 7.42 | 8.22 | 7.60 |
| PAT Margin (%) | 3.63 | 3.63 | 3.39 |
| RoCE (%) | 20.20 | 15.04 | 9.05 |
Total income rose from Rs 204.99 crore in FY24 to Rs 227.13 crore in FY25, then dipped marginally to Rs 224.86 crore in FY26, while PAT moved narrowly (Rs 7.42 crore → Rs 8.22 crore → Rs 7.60 crore) — actually declining ~8% in FY26. So neither the top nor the bottom line shows a clear growth trajectory.
The bigger structural point is that this is a thin-margin, commoditised fibre business: PAT margins sit at just ~3.4–3.6%, characteristic of the man-made-fibre segment where raw-material (PET waste) costs dominate.
Return ratios have weakened sharply — RoCE fell from 20.20% (FY24) to 9.05% (FY26) — and borrowings have risen (reviewers cite debt more than doubling to ~Rs 77 crore, D/E ~1.19), which is exactly why Rs 31 crore of the raise goes to debt repayment. The company reported an average EPS of about Rs 7.40 and an average RoNW of 13.13%. Contingent liabilities of Rs 7.40 crore are a further flag. The company has no dividend history.
Peer Comparison
Ganesha Ecosphere and Divyadhan Recycling are peers, trading at P/Es of roughly 47.6x and 35.4x (as of September 22, 2026). UFL’s ~16.7x FY26 P/E sits well below both, which the low P/BV reinforces.
Risks to Consider
Revenue dipped and PAT fell ~8% in FY26, and RoCE more than halved (20.20% to 9.05%) over three years — so the growth trajectory is unproven and profitability is weakening.
PAT margins of ~3.4% mean earnings are highly sensitive to PET-waste input-price swings and competitive pricing, with limited pricing power in a fragmented, competitive man-made-fibre segment.
Borrowings have risen sharply (D/E ~1.19); while Rs 31 crore of proceeds goes to repayment, leverage and finance costs remain a key monitorable, and the raise plugs debt rather than funding growth.
The business relies on transactional purchase orders without long-term contracts, sources raw materials from local vendors, and has revenue concentrated in a few states — so demand and supply can swing, and local disruption or stronger competitors could hit sales fast.
RPSF depends on a steady supply of PET flakes/chips and post-consumer waste; disruption in the recycling feedstock chain could affect production.
