New Delhi, September 8 (HS): Shares of Rachit Prints, a specialty fabric maker for the mattress industry, made a disappointing debut on the stock market today, leaving IPO investors in the red. Issued at ₹149 per share, the stock listed at ₹119.20 on the BSE SME platform—down 20 percent from the issue price. Post-listing, heavy selling pressure dragged the stock further, with shares trading at ₹114 by 10:15 a.m., marking a 23.49 percent loss for IPO investors within the first hour of trade.

Rachit Prints’ ₹19.50 crore IPO, open for subscription between September 1-3, received only a moderately positive response, being oversubscribed 1.97 times overall. The Qualified Institutional Buyers’ (QIB) quota was subscribed 1.01 times, while the Non-Institutional Investors’ (NII) category saw 1.25 times subscription. Demand was higher in the retail segment, which was subscribed 2.74 times. The issue comprised 13.09 lakh fresh equity shares with a face value of ₹10 each. The company intends to utilize the IPO proceeds for purchase of plant and machinery, debt repayment, working capital needs, and general corporate purposes.

According to its prospectus, the company has shown steady financial improvement over recent years. Net profit climbed from ₹32 lakh in FY 2022-23 to ₹2.03 crore in FY 2023-24 and jumped to ₹4.56 crore in FY 2024-25. Revenue grew at a compound annual growth rate of over 12 percent, reaching ₹41.78 crore. Debt levels, however, fluctuated—falling from ₹14.79 crore at the end of FY 2022-23 to ₹6.38 crore in FY 2023-24, before rising again to ₹9.23 crore in FY 2024-25.

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Hindusthan Samachar / Jun Sarkar