IPO size and price band
The company has priced the shares in the range of Rs 140–149 per share. The lot size has been fixed at 2,000 shares, requiring a minimum investment of Rs 2.8 lakh for retail investors. The issue consists entirely of a fresh issue of 13.08 lakh shares, aggregating to Rs 19.49 crore.
Grey market premium (GMP)
So far, the IPO has not generated a premium in the unofficial grey market. The shares are trading at zero GMP, indicating muted listing expectations. However, demand in the SME IPO segment often builds up during the subscription days, especially on the final day.
Use of IPO proceeds
According to the red herring prospectus, the company plans to use Rs 9.5 crore from the IPO proceeds for working capital requirements. Around Rs 4.4 crore will be used for capital expenditure, mainly for purchasing plant and machinery. A portion of the funds, Rs 1.3 crore, will go towards pre-payment of bank loans, while the rest will be used for general corporate purposes.
About the company
Founded in 2003, Rachit Prints manufactures specialty fabrics for the mattress industry. Its product portfolio includes knitted fabric, printed fabric, warp knit fabric, pillow fabric, and binding tape. The company also trades in bedsheets and comforters.Rachit Prints operates as a business-to-business (B2B) supplier. It counts well-known mattress brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products among its customers. The company’s strengths include an experienced management team, advanced knitting technology, and sustained relationships with customers.
Financial performance
The company’s revenue rose 13% to Rs 41.78 crore in FY25, compared with Rs 37.11 crore in FY24. Profit after tax jumped 125% to Rs 4.56 crore from Rs 2.03 crore a year earlier.
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