Rachit Prints Launches Rs 19.49 Crore IPO on BSE SME Platform
Mattress fabric manufacturer Rachit Prints opens its IPO to raise Rs 19.49 crore, with shares priced at Rs 140-149. The offering, closing on September 3, consists of 13.08 lakh fresh shares. Funds will be used for working capital, plant machinery, loan prepayment, and corporate purposes. The company, supplying to major mattress brands, reported Rs 41.78 crore revenue and Rs 4.56 crore profit in its latest results. Listing on BSE SME platform is scheduled for September 8.
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Rachit Prints, a prominent mattress fabric manufacturer, has opened its Initial Public Offering (IPO) for subscription, aiming to raise Rs 19.49 crore. The IPO, which closes on September 3, marks a significant step for the company as it prepares to list on the BSE SME platform on September 8.
IPO Details
The company has priced its shares in the range of Rs 140-149 per share, with a minimum investment requirement of Rs 2.80 lakh for retail investors. The offering consists entirely of a fresh issue of 13.08 lakh shares.
Grey Market Premium
Currently, the IPO is trading at zero grey market premium, suggesting muted expectations for its listing performance.
Utilization of Funds
Rachit Prints has outlined its plans for the IPO proceeds:
- Working capital requirements: Rs 9.50 crore
- Capital expenditure for plant and machinery: Rs 4.40 crore
- Loan prepayment: Rs 1.30 crore
- General corporate purposes: Remaining amount
Company Overview
Founded in 2003, Rachit Prints has established itself as a supplier of specialty fabrics to renowned mattress brands. Its client portfolio includes industry leaders such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products.
Financial Performance
The company has demonstrated strong financial growth in its latest results:
| Metric | Amount | Growth |
|---|---|---|
| Revenue | Rs 41.78 crore | 13% |
| Profit After Tax | Rs 4.56 crore | 125% |
This substantial increase in profit after tax, coupled with steady revenue growth, underscores the company's financial health and market position.
As Rachit Prints embarks on this new chapter with its public offering, investors and industry watchers will be keenly observing its performance in the coming days. The IPO not only represents a significant milestone for the company but also adds a new player to the BSE SME platform, potentially contributing to the vibrancy of India's small and medium enterprise sector.
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