New Delhi: Rachit Prints, a Meerut-based specialty fabric maker, on Wednesday said it has received in-principle approval from the BSE SME exchange to raise around Rs 19.5 crore through initial public offering.
The company had filed its draft red herring prospectus with BSE SME in December 2024, and is now in the process of submitting the red herring prospectus with updated financials, it said.
The Initial Public Offering (IPO) is entirely a fresh issue of up to 13.08 lakh equity shares with a face value of Rs 10 each, aiming to raise approximately Rs 19.50 crore through the book-building route.
The net proceeds will be utilised with Rs 9.50 crore allocated for working capital requirements, Rs 4.40 crore for business expansion (including capital expenditure for plant and machinery), Rs 1.32 crore for partial prepayment of term loans, and the remaining funds for general corporate purposes.
Rachit Prints manufactures a range of knitted and printed fabrics used in the mattress industry and operates under a business-to-business (B2B) model.
It has supply agreements in place with key players such as Sheela Foam Ltd, the maker of Sleepwell mattresses, and Kurlon Enterprise Ltd. It also supplies products to Prime Comfort Products.
Founded in 2003, the company reported a revenue of Rs 9.8 crore with a profit after tax (PAT) of Rs 1.03 crore in Q1 FY25. It posted Rs 37.08 crore in revenue and a PAT of Rs 2.03 crore in FY24.
Khambatta Securities is the sole book running lead manager, and Maashitla Securities is the registrar to the IPO.
Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.
