Rachit Prints' IPO listed on the BSE SME platform at ₹149 per share, but investors faced a 20% loss as the stock opened at ₹119.20. The company manufactures specialized fabrics for the mattress industry, and the ₹19.50 crore raised from the IPO will be used for plant and machinery, loan reduction, and working capital.
Rachit Prints IPO Listing: Rachit Prints, which supplies B2B fabrics to brands like Sleepwell, Kurlon, and Prime Comfort, listed its IPO on the BSE SME platform at an issue price of ₹149. However, the shares opened at ₹119.20 and later fell to ₹114, resulting in a 23.49% loss for investors. The company had raised ₹19.50 crore through its IPO, which was subscribed between September 1-3, and will be utilized for purchasing plant and machinery, loan reduction, and working capital. Financially, the company is robust, with profits increasing from ₹3.2 lakh to ₹4.56 crore between 2023 and 2025.
Performance on the First Day of Listing
The initial price for Rachit Prints' IPO shares was ₹149. Today, they debuted on the BSE at ₹119.20. Subsequently, during the listing, the shares dropped to ₹114. This means that IPO investors are currently at a 23.49% loss. Despite receiving close to double the subscription during the IPO, investors did not experience listing gains.
Utilization of IPO Funds
Rachit Prints' IPO was for ₹19.50 crore and was open for subscription from September 1 to September 3, 2025. The IPO was subscribed 1.97 times overall. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1.00 times, Non-Institutional Investors (NIIs) subscribed 1.25 times, and retail investors subscribed 2.74 times.
Under the IPO, 13.09 lakh new shares were issued at a face value of ₹10. Out of the funds raised, ₹4.40 crore will be used for the purchase of plant and machinery, ₹1.32 crore for debt reduction, ₹9.50 crore for working capital requirements, and the remaining funds will be used for general corporate purposes.
Company's Business Model
Rachit Prints was established in 2003. The company operates on a B2B model and manufactures specialized printed and knitted fabrics. Its clients include major brands such as Sleepwell, Kurlon, and Prime Comfort. The company's product portfolio includes knitted fabrics, warp knits, printed fabrics, and flame-resistant fabrics.
The company manufactures fabrics and supplies them to brands, which then use these fabrics to create their products. The company's business is growing consistently, and it is recognized as a reliable supplier in its industry.
Financial Health and Growth
Rachit Prints' financial health has been consistently b. In FY 2023, the company's net profit was ₹3.2 lakh, which increased to ₹2.03 crore in FY 2024 and reached ₹4.56 crore in FY 2025. During the same period, the company's total income grew at a Compound Annual Growth Rate (CAGR) of over 12% to ₹41.78 crore.
The company's debt is also under control. At the end of FY 2023, the debt was ₹14.79 crore, which decreased to ₹6.38 crore by the end of FY 2024 and stood at ₹9.23 crore by the end of FY 2025. This indicates that the company has maintained a balance between investment and financial management.
Shares Fell, Will Investors Find Relief?
Rachit Prints' IPO has brought an initial setback for investors, with a decline of 20% on listing compared to the ₹149 share price. The company's financial health is b, and its business model shows continuous growth. The funds raised will be utilized for plant and machinery, debt reduction, and working capital. The company's business prospects remain positive due to its products and market expansion in the future.
