The Company
Rachit Prints (ipo) is a Meerut based specialist in mattress fabrics, pillow fabric and blinding tape. Founded in 2003 by Anupam Kansal, it also trades in comforters and bedsheets. The company follows a B2B model, serving big names like Sleepwell (Sheela Foam), Kurlon and Prime Comfort products through long-term agreements. Its 30,625 sq ft facility boasts advanced machinery from India, Germany, Turkey, and China and it benefits from textile industry subsidies under the ATUFS scheme.
Important Dates
| Event | Date |
|---|---|
| IPO Opens | September 1, 2025 |
| IPO Closes | September 3, 2025 |
| Allotment Finalization | September 4, 2025 |
| Refund Initiation | September 5, 2025 |
| Shares Credited to Demat | September 5, 2025 |
| Listing Date (BSE SME) | September 8, 2025 |
Application Details
| Category | Details |
|---|---|
| Price Band | ₹140 – ₹149 per share |
| Issue Size | 13,08,000 shares (₹19.49 crore fresh issue) |
| Lot Size | 1000 shares per lot |
| Min. Investment (Retail)(2 lot=2000 shares) | ~₹2,98,000 |
| Max. Investment (Retail)(2 lots=2000 shares) | ~₹2,98,000 |
| Min. Investment (s-HNI) (3 lots=3000 shares) | ~₹4,47,000 |
| Max. Investment (s-HNI) (6 lots=6000 shares) | ~₹8,94,000 |
| Min Investment (b-HNI) (7 lots=7000 shares) | ~₹10,43,000 |
Issue Structure: Total fresh issue of 13.08 lakh equity shares
- 66,000 shares reserved for the market maker
- 26,000 for QIBs
- 6.08 lakh each for HNIs and retail investors
Use of Proceeds:
- ₹9.5 crore for working capital
- ₹4.4 crore for plant & machinery
- ₹1.32 crore for loan prepayment
- The remainder for general corporate purposes
Financial Metrics
| Metric | Value (FY25) |
|---|---|
| Return on Equity (RoE) | 51.34% |
| Earnings Per Share (EPS) | ₹9.24 |
| Book Value per Share | ₹36.4 |
| P/E Ratio (Pre-IPO) | ~12x (based on upper band) |
| Post IPO P/E | ~16x |
| Price-to-Book Value | ~4.24x |
| Debt-to-Equity | Data not disclosed |
| GMP (Grey Market Premium) | ₹13 |
| Expected Listing Price | ₹162 (≈9% gain) |
Pros & Cons: What Matters
Pros
- A focused B2B niche with top-tier clients like Sleepwell and Kurlon
- Consistent year-on-year growth in both revenue and profitability
- Strong promoter background and experience
- Modern machinery and tech aided by government subsidies
- Funds to fuel capacity expansion and debt reduction
Cons
- Highly dependent on demand cycles of the bedding/mattress sector
- Intense competition in textiles may squeeze margins
- Raw material price volatility could shift cost dynamics
- As a small-cap SME, liquidity and stock activity post-listing may be limited
- Absence of visible GMP or P/E metrics may leave listing investors guessing
Final Verdict
If you’re a long term investor, Rachit Prints offers a compelling story a small, profitable textile manufacturer with strong partnerships, modern capacity and clear growth ambitions. The IPO could be a smart entry if you believe in its ability to expand and hit its ₹100 crore revenue target by FY27.
On the flip side, short-term traders hoping for listing gains should watch for GMP trends and how aggressively institutions subscribe. Without those signals, listing IPOs can be a bit of a gamble.
Verdict: Really interesting pick for patient investors focusing on fundamentals. Caution, but not avoidance, for listing speculators.
Disclaimer
This article is intended for informational and educational purposes only and should not be considered as investment advice or a recommendation to subscribe to any IPO. Readers are strongly encouraged to conduct their own research, consult with a qualified financial advisor and review the company’s official Red Herring Prospectus (RHP) before making any investment decisions. The accuracy of financial figures or valuation estimates is based on publicly available information at the time of writing and may change without notice.
Investing in IPOs, especially in SME segments, involves risk including potential loss of capital. Please invest wisely.
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