IPO Overview
Incorporated in February 2005, Unitec Fibres Limited is a manufacturer of Recycled Polyester Staple Fibre (RPSF) used by the automobile, home-furnishing, and textile industries. Its fibres are utilised in carpets, vehicle roof liners and trunks, sofas, curtains, and spinning applications. The company’s manufacturing process involves sorting and quality inspection of raw materials, cleaning and pre-processing, extrusion, spinning, and fibre processing to produce fibres with customer-specific characteristics such as colour, denier, density, and finish. The company offers hollow, solid, dope-dyed, and down-type polyester staple fibres ranging from 0.9 to 20 denier.
The company is coming to the public markets through a book-built SME IPO, aiming to raise ₹34.47 crore via a fresh issue of equity shares with a price band of ₹83 to ₹88 per share. The IPO opens on 23 September 2026 and closes on 25 September 2026, with listing expected on BSE SME on 30 September 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| Anchor Investor Date | 22 September 2026 |
| IPO Open Date | 23 September 2026 |
| IPO Close Date | 25 September 2026 |
| Allotment Date | 28 September 2026 (Expected) |
| Refund Initiation | 28 September 2026 |
| Credit to Demat | 28 September 2026 |
| Listing Date | 30 September 2026 (Tentative) |
| Price Band | ₹83 – ₹88 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares |
| Minimum Investment (Retail) | ₹2,81,600 (2 lots = 3,200 shares) |
| Issue Size | ₹34.47 crore |
| Fresh Issue | 39,16,800 shares (₹34.47 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds will go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Market Maker | Up to 2,00,000 shares (reserved) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for its stated business purposes.
Objects of the Issue (Fund Utilization)
The company proposes to utilize net proceeds from the issue towards repayment/prepayment of all or certain borrowings availed by the company — ₹31 crore — with the remainder allocated for general corporate purposes.
- Repayment / prepayment of existing borrowings — ₹31 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Smart Horizon Capital Advisors Private Limited
- Registrar to the Issue: Bigshare Services Private Limited
Promoters & Management
The promoters of Unitec Fibres are M/s. Magic Films Private Limited, Mr. Vijay Omjagdish Behl, Mr. Virander Behl, Ms. Devina Virander Behl, Mr. Rajiv Behl, and Mr. Mihir Suvanam. The ratings reflect the extensive experience of the promoters in the polyester staple fibre industry. Management has more than two decades of industry experience.
The average cost of acquisition of shares by the promoters is ₹0.00, ₹0.04, and ₹18.34 per share. Post-IPO, the company’s current paid-up equity capital of ₹17.07 crore will stand enhanced to ₹23.33 crore.
Company Details
Unitec Fibres operates two manufacturing units at Tarapur, Maharashtra, with a combined installed capacity of 27,984 MTPA. Capacity utilisation stood at 90.85% in FY2026, compared with 90.98% in FY2025 and 92.32% in FY2024. It is also developing a third manufacturing unit on approximately 47,494 sq. metres of land in Valsad, Gujarat.
Sectors Served:
- Home Furnishing (sofas, curtains, carpets)
- Automobile (vehicle roof liners, trunks)
- Non-Woven Fabrics
- Textile & Spinning
Key Products Manufactured:
- Hollow Polyester Staple Fibre
- Solid Polyester Staple Fibre
- Dope-Dyed Polyester Staple Fibre
- Down-Type Polyester Staple Fibre
- Range: 0.9 to 20 denier, customer-specific
Key Capabilities:
- Diversified geographical reach, clientele, and end-user industry base.
- As of March 31, 2026, it had 362 employees on its payroll and an additional 223 contract employees in various departments, and 19 personnel at R&D laboratories constituting 5.25% of total permanent employee strength.
- Consistent near-full capacity utilization across both manufacturing units
Certifications:
- ISO 9001:2015, ISO 14001:2015, OEKO-TEX, and Global Recycled Standard certifications.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹204.99 | ₹7.42 |
| FY25 | ₹227.13 | ₹8.22 |
| FY26 | ₹224.86 | ₹7.60 |
Key Financial Metrics
EBITDA margin moderated to 7.03% in FY26, while PAT margin slipped to 3.39%. Net worth improved to ₹65 crore, but borrowings rose to ₹77.19 crore, raising the debt-to-equity ratio to 1.19. ROE declined to 12.41% in FY2026 from 15.42% in FY2025, while ROCE dropped to 9.05% from 15.04%.
- IPO Valuation P/E: 12.17x
- Pre-issue EPS: ₹7.23 | Post-issue EPS: ₹5.27 (estimated)
- Post-IPO plan to reduce debt-to-equity ratio significantly by repaying ₹31 crore in borrowings
Company Strengths
- Operates in the growing polyester waste recycling and sustainable materials segment — strong global and domestic demand tailwinds for recycled fibre products
- Extensive promoter experience in the polyester staple fibre industry with diversified geographical reach, clientele, and end-user industry base
- Near-full capacity utilisation (~90%+) across both Tarapur manufacturing units, demonstrating strong operational efficiency and demand visibility
- Holds internationally recognized sustainability certifications — ISO 14001:2015, OEKO-TEX, and Global Recycled Standard — enabling access to quality-conscious and export-oriented customers
- Third manufacturing unit under development at Valsad, Gujarat, providing clear near-term capacity expansion runway
- Entire IPO is a fresh issue — no promoter exit; all proceeds directed towards debt reduction and business strengthening
Key Risks & Challenges
- Recent financial performance is not encouraging — FY2026 total income declined marginally to ₹224.86 crore from ₹227.13 crore, while PAT fell 8% to ₹7.60 crore. EBITDA, ROE, ROCE, and profit margins all weakened.
- Borrowings more than doubled to ₹77.19 crore, raising the debt-to-equity ratio to 1.19 — a significant concern for an SME IPO.
- RPSF accounted for 98.04% of FY26 revenue — extreme product concentration with no meaningful revenue diversification
- Susceptibility to volatility in raw material prices — PET flakes and chips prices are globally linked, creating margin pressure in input-cost-heavy cycles
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME platform
- Flat revenue growth over FY25–FY26 raises questions about near-term scalability before the third plant becomes operational
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
