Rachit Prints IPO Opens Today: Check Key Details, Financials, and Risks from RHP

Meerut, September 1, 2025 – Rachit Prints Limited (BSE SME: RACHIT) has launched its Initial Public Offering (IPO) today, September 1, 2025. The ₹19 crore issue will close on September 3, 2025, with listing scheduled for September 5, 2025. The company is offering up to 13.08 lakh equity shares at a price band of ₹140–₹149 per share, with a lot size of 1,000 shares (minimum application 2,000 shares).

IPO Key Details

Rachit Prints IPO is scheduled to open on September 1, 2025, and close on September 3, 2025, with the listing date set for September 5, 2025. The price band has been fixed at ₹140 per share to ₹149 per share. The company is looking to raise around ₹19 crore through the issue of 13.08 lakh shares. The minimum lot size is 1,000 shares, which corresponds to an investment of ₹1.40 lakh to ₹1.49 lakh. Khambatta Securities Ltd will be the lead manager, registrar will be Maashitla Securities Pvt Ltd, and Prabhat Financial Services Ltd will be the market maker.

The net proceeds will be utilized to meet working capital (₹9.5 crore), expansion of plant and machinery (₹4.4 crore), and repayment of part of term loans (₹1.32 crore), with the balance for general corporate purposes.

Financial Performance – Both Operating Revenue and Total Income in Positive Trajectory

Rachit Prints has recorded consistent financial expansion in the past three years of its financials. Operating revenue improved from ₹3,232.21 lakh in FY23 to ₹4,170.32 lakh in FY25, and total income also tracked in the same direction, reaching ₹4,178.43 lakh. Profitability was much better, with EBITDA improving from ₹200.84 lakh in FY23 to ₹722.78 lakh in FY25, driving margins up from 6.21% to 17.33% over the same period.

Net profit also recorded steep growth, increasing from ₹32.30 lakh in FY23 to ₹456.18 lakh in FY25, while PAT margins improved to 10.94%. The balance sheet of the company also got better, with net worth almost doubling to ₹1,230.91 lakh. The debt-to-equity ratio has fallen from 4.31 to 0.75, indicating improved financial stability. Returns continued to be healthy, with ROE increasing from 9.87% to 51.34% and ROCE improving from 6.41% to 29.61%, which highlights effective utilization of capital and profitability.

Key Takeaways:

Revenue increased at a 13.7% CAGR from FY23 to FY25. PAT increased sharply from ₹32.3 lakh in FY23 to ₹456.18 lakh in FY25. Healthy balance sheet improvement with the debt-equity ratio dropping to 0.75 in FY25 from 4.31 in FY23. Return ratios surged, with ROE at 51.34% and ROCE at 29.61% in FY25.

RHP’s Key Risks

• Customer Concentration: Top 5 customers accounted for 82.5% of FY25 revenues, with Sheela Foam Ltd alone at 35.9%.
• Supplier Dependence: Top 5 suppliers accounted for 67.5% of FY25 purchases.
• Working Capital Intensive: Trade receivables of ₹793.70 lakh (69 days) and inventory of ₹423.21 lakh (37 days) as of FY25.
• Cash Flow Pressures: Negative operating cash flows in FY23; heavy investing outflows in FY25 on account of machinery acquisition.
• Regulatory Delays: Historical GST, EPF, and ESI filing delays, as well as the absence of RoC records prior to 2006.
• Geographic Concentration: Activities are localized in Meerut, Uttar Pradesh.
• Fire Hazard: Factory fire in 2017 resulted in a loss of ₹37.2 lakh; settlement of the insurance claim is still pending.
• Promoter Control: Promoters will retain ~67.69% after IPO, but with huge control.

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