Rachit Prints IPO 2025 – Complete Detailed Analysis

 

 

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Rachit Prints Limited, a Meerut-based textile company specializing in specialty knitted and printed fabrics catering mainly to the mattress industry, is launching its IPO in September 2025. This IPO marks an important milestone for the company as it expands its footprint in the textile sector, offering investors an opportunity to participate in its growth.

This blog post covers the company background, business model, IPO specifications, financial performance, industry prospects, competitive strengths, risks, and investor considerations.

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Company Background

Rachit Prints Limited was originally incorporated as a private limited company in March 2003 and was converted into a public limited company in May 2024. The promoters have been engaged in fabric manufacturing under a partnership firm even before incorporation. The company specializes in manufacturing specialty knitted fabrics and printed fabrics primarily for mattress manufacturers, offering customized solutions with in-house weaving, designing, printing, and finishing.

Key Company Facts

Parameter	Details
Incorporation Year	2003
Headquarters	Meerut, Uttar Pradesh, India
Business Focus	Specialty knitted and printed fabrics for mattress industry
Operational Model	B2B (Business to Business)
Key Clients (MoUs)	Sheela Foams Limited, Kurlon Enterprise Limited
Manufacturing Capacity	18 Circular high-speed knitting machines; Automatic printing and dying
Technology Adoption	State-of-art machineries including Mayer & Cie circular knitting, OVJA printing machines
Industry Certifications	Amended Technology Upgradation Fund Scheme (ATUFS)
Workforce	Skilled professionals and technical staff

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Business Model

Rachit Prints operates in the textile manufacturing sector, focusing on value-added products for the mattress industry. Its product manufacturing cycle includes:

• Yarn procurement
• Knitting of fabrics using advanced circular knitting machines
• Designing and pattern printing on fabrics
• Dyeing, finishing, and testing for quality assurance
• Packaging and distribution primarily through B2B sales channels

The company predominantly operates on an order basis, supplying fabrics tailored to specific client requirements, thereby maintaining a customized product approach.

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IPO Details

Parameter	Detail
IPO Open Date	September 1, 2025
IPO Close Date	September 3, 2025
Issue Size	₹19.49 crore (Fresh Issue)
Number of Shares	13,08,000 shares
Face Value	₹10 per share
Price Band	₹140 - ₹149 per share
Minimum Lot Size	1,000 shares
Minimum Investment (Retail)	₹2,98,000 (2 lots at upper price band)
Listing Exchange	BSE SME and NSE SME
Listing Date	September 8, 2025
Lead Manager	To be announced
Registrar	Maashitla Securities Private Limited
Mode of Issue	Book-building IPO

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Financial Performance Summary

Financial Parameter	FY 2025 (₹ Cr)	FY 2024 (₹ Cr)	FY 2023 (₹ Cr)	Note
Revenue from Operations	41.70	37.08	32.32	Increasing revenue trend
Profit after Tax (PAT)	4.56	2.03	0.32	Significantly improving profitability
EBIDTA Margin (%)	Not specified	Not specified	Not specified	Data not available in sources
Earnings Per Share (EPS)	Not specified	Not specified	Not specified	Data not available in sources

The company has witnessed a robust leap in profitability alongside moderate revenue growth, demonstrating operational efficiencies and scale advantages.

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Key Strengths

• Use of advanced circular knitting machinery including German and Chinese technologies ensuring high quality and customization.
• Experienced management team with over three decades in textile manufacturing industry.
• Government incentives through the capital investment subsidy scheme (ATUFS) supporting modernization and expansion.
• Established MOUs with prominent mattress companies ensuring steady client engagement and revenue visibility.
• A focused approach on mattress fabric niche leveraging technical expertise for customer-specific products.

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Industry Overview

• India’s textile industry is one of the largest in the world, with steady domestic and export demand.
• The mattress segment demand grows with urbanization and increasing awareness about health and comfort.
• Rising disposable income and increasing residential constructions boost demand for home furnishing fabrics.
• Growing prominence of branded and value-added textile products favor companies specializing in customized, technical fabrics.

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Risks and Challenges

• The company depends heavily on a limited customer base which exposes revenue concentration risk.
• Industry-wide risks include fluctuations in raw material prices (yarn and dyes) impacting cost structures.
• Competition from unorganized and organized textile manufacturers may create pricing pressures.
• Risk of supply chain disruptions affecting timely production and deliveries.
• Dependence on government subsidies and schemes which might be subject to changes.

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Promoters and Management Team

Name	Role	Experience & Background
Mr. Anupam Kansal	Promoter & Managing Director	30+ years in textile and fabric manufacturing; MSc from Meerut College
Other Promoters	Involved in management and operations	Extensive experience in textile trading and manufacturing sectors

Promoter experience and long-standing industry relationships are key growth drivers for the company.

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Grey Market Premium (GMP)

• Currently unavailable due to pending IPO subscription.
• Initial expectations based on industry norms suggest moderate to positive premium post-listing.

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Application Process and Investor Details

Investor Category	Minimum Lot Size	Minimum Investment at Upper Price Band (₹)
Retail Investors	2 lots (2,000 shares)	₹2,98,000
Small Non-Institutional Investors	3 lots (3,000 shares)	₹4,47,000
Large Non-Institutional Investors	7 lots (7,000 shares)	₹10,43,000

Applications accepted online via ASBA and offline through broker channels.

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IPO Timeline

Event	Date
IPO Opening Date	September 1, 2025
IPO Closing Date	September 3, 2025
Basis of Allotment	September 4, 2025
Refunds Begin	September 5, 2025
Share Credit Date	September 5, 2025
Listing Date	September 8, 2025

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Summary Table – Rachit Prints IPO Overview

Feature	Information
IPO Issue Size	₹19.49 Crores (Fresh issue)
Price Band	₹140 - ₹149 per share
Minimum Investment	₹2,98,000 (Retail - 2 lots)
Listing Exchange	BSE SME and NSE SME
Promoters	Mr. Anupam Kansal and team
Business Focus	Specialty knitted and printed fabrics for mattresses
IPO Dates	September 1-3, 2025
Listing Date	September 8, 2025

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Conclusion

Rachit Prints Limited IPO offers access to a niche textile player with steady growth, advanced manufacturing capabilities, and strong customer linkages in the mattress industry. Its strategic focus on customized fabrics supported by government incentives and operational efficiencies presents a compelling growth story.

Investors with medium to long-term outlook interested in the textile manufacturing sector can consider this IPO after assessing its risks relating to customer concentration and market competition.

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This article covers all critical aspects of Rachit Prints IPO with insightful tables and data to assist investors and readers in making informed decisions.