Rachit Prints Limited (RPL), a leading name in the production of specialty knitted and printed fabrics for the mattress industry, has received in-principle approval from the BSE SME Exchange for its upcoming Initial Public Offering (IPO). With a strong foundation in innovation and quality manufacturing, the company is now gearing up for its next phase of growth by tapping into the capital market.
Rachit Prints specializes in manufacturing a wide range of textile products including knitted fabric, printed fabric, warp knit, pillow fabric, and blinding tape, while also trading in comforters and bedsheets. The company primarily operates under a B2B model, supplying high-performance textiles to the mattress industry.
Rachit Prints sources quality yarns and chemicals to produce customized fabric solutions, catering to major mattress brands. It has secured long-term supply agreements with Sheela Foam Limited (Sleepwell) and Kurlon Enterprise, the latter through a Memorandum of Understanding (MoU) signed in February 2024 for the supply of 19 lakh meters of fabric. The company also supplies to Prime Comfort Products Private Limited.
Its 30,625 sq. ft. manufacturing facility in Meerut is equipped with state-of-the-art machinery sourced from India, Germany, Turkey, and China. The unit also benefits from government subsidies under the Amended Technology Upgradation Fund Scheme (ATUFS), supporting its focus on operational efficiency and quality enhancement.
Founded in 2003 by Mr. Anupam Kansal, a textile industry veteran with over three decades of experience, Rachit Prints has grown steadily by prioritizing innovation, quality, and customer satisfaction. Mr. Kansal currently leads the company’s strategic initiatives, including business development and expansion.
Rachit Prints Limited has now taken a significant step towards its next phase of growth, announcing that it has received in-principle approval from the BSE SME Exchange for its IPO. The company had filed its Draft Red Herring Prospectus (DRHP) with the exchange in December 2024 and is currently in the process of submitting its Red Herring Prospectus (RHP) with updated financials.
The proposed IPO comprises a fresh issue of up to 13,08,000 equity shares with a face value of ₹10 each and aims to raise approximately ₹19.50 crore through the book-building route. The net proceeds from the issue will be strategically utilized as follows:
– ₹9.50 crore for working capital requirements
– ₹4.40 crore for business expansion, including investment in plant and machinery
– ₹1.32 crore for partial prepayment of term loans
– The balance for general corporate purposes
In terms of financial performance, the company reported ₹9.8 crore in revenue from operations and a Profit After Tax (PAT) of ₹1.03 crore in Q1 FY25. For the full fiscal year FY24, Rachit Prints posted ₹37.08 crore in revenue and a PAT of ₹2.03 crore, reflecting consistent growth and profitability.