Rachit prints iPO: Rachit Prints Ltd’s ₹ 19.49 crore SME IPO has been completed recently. The company issued a total of 13 lakh new shares under this. This issue was opened for investment from 1 September to 3 September and now its listing day has been fixed on 8 September. The price band of the IPO was kept at ₹ 140 to ₹ 149 per share.
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What did GMP indicate? (Rachit prints iPO)
According to market sources, the gray market premium (GMP) of Rachit Prints IPO has come to zero. The listing price is estimated to be ₹ 149 on the basis of cap price and GMP, that is, the possibility of flat listing is currently being expressed.
- The GMP was ₹ 21 before the issue was opened.
- The first day decreased to ₹ 13.
- As it was closed, it reached zero.
This trend suggests that the enthusiasm of investors did not have been as strong as recent IPO.
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Subscription status (Rachit prints iPO)
Nevertheless, the issue was completely subscribed.
- Total subscription – 1.97 times
- Retail Investor – 2.74 times
- NII category – 1.25 times
- QIB category – 1 fold
It is clear that retail investors showed more confidence, while big investors were a little cautious.
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Company business and client (Rachit prints iPO)
Rachit Prints LTD prepares special fabric for the mattress industry. Its products include nitated, printed, warsp -bow and pillow fabric. Also, the company also trade binding tape, comfort and bedsheet.
It works on the B2B model and has major customers –
- Sleepwell
- Kurlon enterprises
- Prime Comfort Products
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financial performance
The company’s revenue in FY25 was ₹ 41.78 crore, which is 13% more year-on-year.
PAT (post -tax profit) was ₹ 4.56 crore, with a big increase of 125%.
Use of amount raised from IPO (Rachit prints iPO)
- ₹ 9.50 Crore – Need working capital
- ₹ 4.40 Crore – On expansion schemes (new plants and machinery)
- ₹ 1.32 Crore – Partial Payment of Bank Term Loan
- Remaining – for general corporate purposes
GMP is indicating that investors will not get a big benefit on listing. However, the company’s business model and financial performance are strong. Now it has to be seen how the market responds on September 8, will the share be flat or investors will suddenly get any surprise?
