Rachit Prints Limited, a Meerut-headquartered manufacturer of specialty knitted and printed fabrics for the mattress industry, has received in-principle approval from the BSE SME Exchange for its proposed Initial Public Offering (IPO).
The company is aiming to raise Rs 19.50 crore via a fresh issue of 13.08 lakh equity shares, as it gears up to fuel its growth trajectory, working capital needs, and infrastructure expansion.
The IPO proceeds will be strategically deployed across multiple objectives: Rs 9.50 crore will be utilised to meet working capital requirements, Rs 4.40 crore for business expansion (including capital investments in plant and machinery), Rs 1.32 crore for partial repayment of term loans, and the remainder for general corporate purposes.
Founded in 2003 by textile industry veteran Anupam Kansal, Rachit Prints specialises in the production of high-performance textile products such as knitted and printed fabrics, warp knit, pillow fabrics, and blinding tapes. The company also trades in comforters and bedsheets. It operates a 30,625 sq. ft manufacturing unit in Meerut, equipped with modern machinery sourced from India, Germany, Turkey, and China, and benefits from the government’s ATUFS (Amended Technology Upgradation Fund Scheme).
With a strong B2B focus, Rachit Prints has built long-term relationships with leading players in the mattress industry. It holds supply agreements with Sheela Foam Limited (makers of Sleepwell) and a Memorandum of Understanding (MoU) with Kurlon Enterprises for the supply of 19 lakh meters of fabric signed in February 2024. The company also caters to Prime Comfort Products Private Limited.
Financially, Rachit Prints reported Rs 37.08 crore in revenue with a profit after tax (PAT) of Rs 2.03 crore in FY24. For Q1 FY25, the company clocked Rs 9.8 crore in revenue and a PAT of Rs 1.03 crore, indicating steady growth and profitability.
Khambatta Securities Limited is the Book Running Lead Manager for the IPO, while Maashitla Securities Private Limited has been appointed as the Registrar to the Offer.
The company is currently in the process of filing its Red Herring Prospectus (RHP) with updated financials.
