Rachit Prints files DRHP with BSE SME

Rachit Prints, a speciality fabric manufacturer for the mattress industry, announced the filing of its Draft Red Herring Prospectus (DRHP) with BSE SME. The company’s initial public offering comprises a fresh issuance of 13,08,000 equity shares, each with a face value of Rs 10.  

Khambatta Securities is the sole book-running lead manager to the issue, and Maashitla Securities is the registrar.

The Meerut-headquartered company manufactures speciality fabrics tailored for mattresses, such as knitted fabric, printed fabric, warp knit, pillow fabric, and blinding tape and also engages in the trading of comforters and bedsheets. Specialised in knitted fabrics, printed fabrics, and warp knit, the company sources yarn and chemicals to produce specialised textiles. RPL is specialised in converting yarn into fabric through knitting of fabrics and printing.

RPL follows a business-to-business (B2B) model for its products. The company has executed an MoU with Sheela Foam (Sleepwell) and Kurlon Enterprise in February 2024 to supply 11,00,000 meters of printed and 8,00,000 meters of Circular knit speciality fabric. The company also supplies its products to Prime Comfort Products. It operates a manufacturing facility spread over an area of 30,625-sqft. 

Located at Meerut, Uttar Pradesh, the unit is well equipped with Indian, German, Turkish, and Chinese machinery.

According to DRHP, the company intends to utilise Rs 10.18-crore of the total IPO proceeds to fund working capital requirements, including margin money, Rs 5.5-crore to fund the expansion of the company, which includes capital expenditure towards the purchase of plant and machinery, Rs 1.1-crore for partial pre-payment of the term loan to the bank. The company will use the remaining funds for general corporate purposes.

Founded by Anupam Kansal in 2003, the company is focused on producing quality products to increase customer satisfaction and develop a positive brand image in the industry. With over three decades of experience in the textiles industry, Kansal is actively involved in strategic decision-making for the company, corporate and administrative affairs, financial operations, expansion activities, and business development. The company is located in the state of Uttar Pradesh and enjoys the benefits of subsidies under the “Amended Technology Upgradation Fund Scheme” (ATUFS) provided by the Ministry of Textiles, Government of India, towards capital investment subsidy.

RPL has recorded Rs 9.8-crore in revenue from operations with a profit (PAT) of Rs 1.03-crore in the first quarter of the current financial year ended June 2024, compared to Rs 37.08-crore in revenue from operations and a profit of Rs 2.03-crore in FY24.