Rachit Prints Files DRHP for IPO with Focus on Fund Utilization for Growth According to the DRHP, RPL plans to allocate INR 10.18 crore of the IPO proceeds to meet working capital requirements, including margin money. Additionally, INR 5.5 crore will be used for expansion through the purchase of plant and machinery, while INR 1.1 crore is earmarked for partial pre-payment of existing bank loans.
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Meerut-based Rachit Prints Limited (RPL), a speciality fabric manufacturer for the mattress industry, has announced the filing of its Draft Red Herring Prospectus (DRHP) with the BSE SME exchange. The Initial Public Offering (IPO) will consist of a fresh issue of 13,08,000 equity shares, each with a face value of INR 10. Khambatta Securities Limited is acting as the sole Book Running Lead Manager, while Maashitla Securities Private Limited serves as the Registrar to the issue, as per a press release.
Rachit Prints, which specializes in knitted fabric, printed fabric, warp knit, and pillow fabric, has carved a niche in the B2B market by supplying high-quality, customised fabrics to the mattress industry. The company also engages in trading comforters and bedsheets. Its manufacturing process transforms sourced yarn into premium fabrics, further enhancing its value proposition.
RPL recently strengthened its market presence by signing a Memorandum of Understanding (MoU) with mattress industry giants Sheela Foam Limited (Sleepwell) and Kurlon Enterprises. Under the agreement, the company will supply 11,00,000 meters of printed fabric and 8,00,000 meters of circular knit speciality fabric.
The company operates a manufacturing facility in Meerut, Uttar Pradesh, spread across 30,625 sq. ft., equipped with advanced machinery sourced from India, Germany, Turkey, and China. According to the DRHP, RPL plans to allocate INR 10.18 crore of the IPO proceeds to meet working capital requirements, including margin money. Additionally, INR 5.5 crore will be used for expansion through the purchase of plant and machinery, while INR 1.1 crore is earmarked for partial pre-payment of existing bank loans. The remainder will fund general corporate purposes.
Founded in 2003, the company also enjoys subsidies under the Amended Technology Upgradation Fund Scheme (ATUFS), aimed at promoting capital investments in the textile sector. Financially, RPL reported robust performance with revenue of INR 9.8 crore and a profit after tax (PAT) of INR 1.03 crore in Q1 FY25. This follows FY24, where it achieved INR 37.08 crore in revenue and a PAT of INR 2.03 crore.
