Rachit Prints Limited is a premier mattress fabric manufacturer based in India since 2003. The company is committed to delivering high-quality fabrics to customers and specializes in producing top-tier wholesale and knitted fabrics that meet industry standards. With a team of seasoned experts, the company continually enhances its product offerings using the finest materials, ensuring quality and innovation in its operations.

The Rachit Prints IPO is a Book Built Issue amounting to ₹19.49 Crores, consisting entirely of a fresh issue of 13.08 lakh shares. The subscription period opened on 1 September 2025 and closed on 3 September 2025, with allotment expected on 4 September 2025, and a tentative listing on BSE SME on 8 September 2025. The price band was set at ₹140 to ₹149 per share, with a lot size of 1,000 shares. Individual investors were required to apply for a minimum of 2 lots, amounting to ₹2,98,000.

The IPO was managed by KHAMBATTA SECURITIES LIMITED as the Book Running Lead Manager, with MAASHITLA SECURITIES PRIVATE LIMITED as the registrar, and Prabhat Financial Services Limited as the sole Market Maker. The Grey Market Premium (GMP) is ₹0, and the IPO was subscribed 1.28 times on its final day of subscription, indicating moderate investor interest.

IPO Objectives:
The company intends to utilize the net proceeds as follows:

1. ₹950 Lakh for working capital requirements to support operational efficiency.

2. ₹40 Lakh for expansion plans, including capital expenditure for new plant and machinery.

3. ₹132 Lakh for partial pre-payment of term loans, reducing financial obligations.

4. General corporate purposes, supporting strategic growth initiatives.

Management and Leadership:
The company is led by experienced promoters:

• Mr. Anupam Kansal – over 30 years of experience in the textile and apparel industry.

• Ms. Naina Kansal – two decades of experience in manufacturing specialty fabrics, providing expertise in strategic decision-making and operations.

Their leadership ensures continued growth, operational excellence, and adherence to high-quality standards in textile manufacturing.

Financial Performance:
Rachit Prints has demonstrated steady growth over the past three fiscal years:

• Revenue: ₹4,178.43 Lakh (FY25), ₹3,711.11 Lakh (FY24), ₹3,238.75 Lakh (FY23)

• EBITDA: ₹578.19 Lakh (FY25), ₹358.84 Lakh (FY24), ₹203.92 Lakh (FY23)

• Profit After Tax (PAT): ₹456.18 Lakh (FY25), ₹202.99 Lakh (FY24), ₹32.30 Lakh (FY23)

Key performance metrics include pre-issue EPS of ₹13.03, post-issue EPS of ₹9.24, pre-issue P/E ratio of 11.44x, post-issue P/E ratio of 16.12x, ROCE at 29.61%, and ROE at 51.34%, indicating that the IPO is fairly priced.

IPO Listing Outlook:
The Grey Market Premium of ₹0 indicates minimal anticipated listing gains, reflecting moderate investor enthusiasm. Given the company’s financial performance and valuation, investors are recommended to avoid the Rachit Prints IPO for listing gains.

The IPO proceeds will help the company strengthen working capital, fund expansion plans, reduce debt, and continue delivering high-quality fabrics to the Indian textile market.

The Upcoming IPOs in this week and coming weeks are Taurian MPS, Jay Ambe Supermarkets, Krupalu Metals, Urban Company, Shringar House of Mangalsutra, Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Vigor Plast India.

The Current active IPO are Austere Systems, Optivalue Tek Consulting, Goel Construction Company, Amanta Healthcare, Rachit Prints.

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