Rachit Prints sets IPO price band at ₹140-₹149, issue to open on September 1

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

The public issue will close on September 3 and comprises a fresh issue of 13,08,000 Lakh equity shares with a face value of ₹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 ₹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 ₹9.5 crore of the net proceeds towards working capital requirements, ₹4.4 crore for purchase of plant and machinery, and ₹1.32 crore for prepayment of term loans. The balance will be earmarked for general corporate purposes.

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

In FY25, Rachit Prints reported revenue from operations of ₹41.70 crore and a profit after tax of ₹4.56 crore, compared with revenue of ₹37.08 crore and a profit of ₹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 Ltd, and Prime Comfort Products Pvt Ltd. 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.

Source : Equity Bulls

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