Rachit Prints to Launch ₹19.5 Crore IPO on September 1 with Price Band of ₹140–₹149

August 26, 2025 – Meerut-based speciality fabric maker Rachit Prints Ltd has announced its ₹19.5 crore initial public offering (IPO), with a price band of ₹140–₹149 per share. The IPO will open for subscription on September 1 and close on September 3, with listing slated on the BSE SME platform. The IPO, entirely a fresh issue of 13.08 lakh equity shares (face value ₹10 each), is aimed at funding business expansion and strengthening the balance sheet.

Founded in 2003 by Anupam Kansal, Rachit Prints manufactures speciality fabrics for the mattress industry, including knitted and printed fabrics, warp knit, pillow fabric, and blinding tape. It also trades in comforters and bedsheets. The company operates on a B2B model, supplying to leading brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products. The company also benefits from the Ministry of Textiles’ Amended Technology Upgradation Fund Scheme, which provides subsidies for capital investment in the textile sector.

IPO Snapshot

• The initial public offering (IPO) will open for subscription on September 1, 2025, and close on September 3, 2025.
• The company has set a price band of ₹140 to ₹149 per share.
• The total issue size amounts to ₹19.5 crore, which translates to 13.08 lakh equity shares.
• This IPO is a 100% fresh issue, meaning all proceeds will directly go to the company for business needs.
• Each share carries a face value of ₹10.
• Post-issue, the shares will be listed on the BSE SME platform.
• Khambatta Securities is acting as the Book Running Lead Manager (BRLM) for the issue.
• Maashitla Securities has been appointed as the registrar to the IPO.

Utilisation of Proceeds

• ₹9.5 crore: Working capital requirements
• ₹4.4 crore: Purchase of plant and machinery
• ₹1.32 crore: Debt repayment
• Balance: General corporate purposes

Financial Performance

The company reported a revenue of ₹41.70 crore in FY25, rising from ₹37.08 crore in the previous year, while profit after tax (PAT) more than doubled to ₹4.56 crore compared with ₹2.03 crore in FY24. This reflects robust revenue growth alongside a more than two-fold rise in profitability.

Key Risks (as per RHP)

• Heavy reliance on a limited set of mattress industry clients may expose the company to demand concentration risks.
• Intense competition in the textile and fabric manufacturing sector could impact margins.
• Dependence on subsidies and government schemes for cost advantages may not be sustainable in the long term.

What’s Next?

Investor subscriptions open on September 1, 2025. Allotment is expected shortly after closure, with listing to follow on the BSE SME platform. Market participants will closely watch demand across retail and institutional categories, given the company’s strong client base and improving profitability.

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