Rachit Prints IPO issue to open on 1 September

Rachit Prints, a Meerut-based speciality fabric manufacturer for the mattress industry, has fixed a price band of INR 140-149 per share for its initial public offering (IPO), which will open for subscription on 1 September.

The public issue will close on 2 September and comprises a fresh issue of 13,08,000 lakh equity shares with a face value of INR 10 each. Of the total offer, 66,000 shares are reserved for the market maker, 26,000 shares for qualified institutional buyers (QIBs), 6.08 lakh shares for high net-worth individuals (HNIs), and 6.08 lakh shares for retail investors. At the upper price band, the company aims to raise INR 19.5 crore and plans to list its shares on the BSE SME platform. The lot size for the IPO has been set at 1,000 shares.

According to the red herring prospectus (RHP), the company intends to utilise INR 9.5-crore of the net proceeds towards working capital requirements, INR 4.4-crore for the purchase of plant and machinery, and INR 1.32 crore for prepayment of term loans. The balance will be earmarked for general corporate purposes.

Khambatta Securities is the sole book-running lead manager to the issue, while Maashitla Securities is the registrar.

In FY25, Rachit Prints reported revenue from operations of INR 41.70-crore and a profit after tax of INR 4.56-crore, compared with revenue of INR 37.08-crore and a profit of INR 2.03-crore in the previous fiscal.

Established in 2003 by Anupam Kansal, the company manufactures a range of fabrics used in the mattress industry, including knitted and printed fabrics, warp knit, pillow fabric, and blinding tape. It also trades in comforters and bedsheets. Its manufacturing facility in Meerut, Uttar Pradesh, is equipped with machinery sourced from India, Germany, Turkey and China.

The company operates on a B2B model and supplies products to leading brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products. It has a presence across several states, including Delhi, Gujarat, Maharashtra, Karnataka, Tamil Nadu, Punjab, Telangana, Assam and West Bengal.

Rachit Prints also benefits from the Ministry of Textiles’ Amended Technology Upgradation Fund Scheme (ATUFS), which provides capital investment subsidies to textile companies.