Rachit Prints IPO : Should You Apply?

---

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.

---

All the best to all the learners.

Keep learning , keep growing.