Rachit Prints Announces Rs 19.5 Crore IPO with Price Band of Rs 140-149
Rachit Prints Ltd, a specialty fabric manufacturer, has set the price band for its IPO at Rs 140-149 per share. The Rs 19.5 crore IPO on BSE's SME platform will open for subscription from September 1 to September 3. The company plans to issue 13.08 lakh fresh equity shares. Funds raised will be used for working capital, purchasing machinery, debt repayment, and general corporate purposes. Established in 2003, Rachit Prints specializes in fabrics for the mattress industry, supplying to brands like Sleepwell and Kurlon. The company's revenue grew from Rs 37.08 crore to Rs 41.70 crore, with profit after tax increasing from Rs 2.03 crore to Rs 4.56 crore. Khambatta Securities is the lead manager for the IPO.
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Specialty fabric manufacturer Rachit Prints Ltd has set the stage for its initial public offering (IPO) on BSE's SME platform, announcing a price band of Rs 140-149 per share. The Rs 19.5 crore IPO is scheduled to open for subscription on September 1 and close on September 3.
IPO Details
The public issue comprises a fresh issue of up to 13.08 lakh equity shares with a face value of Rs 10 each. At the upper end of the price band, the company aims to raise approximately Rs 19.5 crore.
Utilization of Funds
Rachit Prints has outlined the following allocation for the IPO proceeds:
| Purpose | Amount (in Rs crore) |
|---|---|
| Working capital requirements | 9.50 |
| Purchase of plant and machinery | 4.40 |
| Debt repayment | 1.32 |
| General corporate purposes | Remaining balance |
Company Overview
Established in 2003 and based in Meerut, Rachit Prints Ltd specializes in manufacturing fabrics for the mattress industry. The company has built a strong presence in its niche, supplying to renowned brands such as Sleepwell, Kurlon Enterprises Ltd, and Prime Comfort Products.
Financial Performance
Rachit Prints has demonstrated growth in its financial performance:
| Fiscal Year | Revenue (in Rs crore) | Profit After Tax (in Rs crore) |
|---|---|---|
| FY25 | 41.70 | 4.56 |
| FY24 | 37.08 | 2.03 |
The company's revenue increased from Rs 37.08 crore to Rs 41.70 crore, while profit after tax more than doubled from Rs 2.03 crore to Rs 4.56 crore.
IPO Management
Khambatta Securities is serving as the sole book-running lead manager for the IPO, while Maashitla Securities has been appointed as the registrar to the issue.
Investors interested in participating in Rachit Prints' IPO can mark their calendars for the subscription period from September 1 to September 3. As always, potential investors are advised to carefully review the company's prospectus and consider their financial goals before making an investment decision.
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