Rachit Prints Lists at ₹119.20 on BSE SME, Slips 24% from Issue Price

Meerut, September 8, 2025 – Rachit Prints Limited (BSE SME: RACHIT) debuted on the BSE SME platform at ₹119.20, which is 20% down from the upper (book) price band of ₹149. Shortly after listing, around 12:40 PM IST, the stocks continued to face selling pressure, and the stock price reached the lower circuit at ₹113, ending down 23.99% from its relaxation price. Given the 1.97 times subscription and overall lukewarm investor interest in the IPO, a weak listing was not entirely unexpected.

Incorporated in 2003, Rachit Prints Limited operates in the manufacture and trading of specialty fabrics, such as knitted and printed fabrics, warp knits, pillow fabrics, and comforters. Recently, it reported a significant financial turnaround in FY25, with the total revenue at ₹4,170.32 lakh and profit after tax of ₹456.18 lakh, amounting to a profit margin of 10.94% and return on equity of 51.34%. The company operates at a B2B model, supplying its products to resellers and mattress manufacturers.

Weak Debut Keeps Stock Below Listing Price, Market Cap At ₹55.9 Crore

Throughout its first session, the stock remained under pressure. The high reached for the first day was limited to the listing price of ₹119.20, while the low matched the last traded price of ₹113.25. With this weak performance, the company’s total market capitalization was ₹55.91 crore, and its free-float market capitalization was ₹14.82 crore. The turnover on day one was ₹31.89 Lakh, which reveals limited trading interest and a cautious stance from investors.

Disconnect Between Fundamentals and Sentiment

Even with decent fundamentals and increased profitability, the poor debut of the stock indicates that there was a disconnect between the company’s financial strength and investor confidence. A weak market debut reflects that in a volatile market environment, sentiment and valuations can supersede fundamentals.

The company plans to use the IPO proceeds for working capital requirements, the purchase of capital assets (plant and machinery), and repayment of existing debt. The remainder amount shall be used for general corporate purposes.

REF: https://www.bseindia.com/stock-share-price/rachit-prints-ltd/rachit/544503/

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