Rachit Prints Plunges 20% on BSE SME Debut

New Delhi, Sep 8 (KNN) Rachit Prints Limited had a lacklustre debut on the Indian stock market as its shares were listed at a 20 per cent discount on Monday.

The stock opened at Rs 119.20 apiece on the BSE SME platform, against the issue price of Rs 149 per share.

The weak debut came in line with market expectations, as the company’s grey market premium (GMP) stood at Rs 0, indicating no significant listing gains.

Rachit Prints’ initial public offering (IPO) was open for subscription between September 1 and September 3, with allotment finalised on September 4.

The company raised Rs 19.50 crore through a fresh issue of 13 lakh equity shares priced at Rs 149 each. Retail investors had to apply for a minimum of 1,000 shares, amounting to Rs 2.98 lakh.

The IPO attracted decent participation, recording an overall subscription of 1.97 times. Retail investors were the most enthusiastic, subscribing 2.74 times, while Qualified Institutional Buyers subscribed fully, and Non-Institutional Investors subscribed 1.25 times.

The company plans to utilise the IPO proceeds to fund working capital, expand operations through capital expenditure on plant and machinery, partially prepay loans, and meet general corporate needs.

Khambatta Securities Ltd. served as the lead manager, with Maashitla Securities Pvt. Ltd. as registrar and Prabhat Financial Services Ltd. as the market maker.

Founded in 2003, Rachit Prints manufactures specialty fabrics for the mattress industry, including knitted, printed, warp-knit, and pillow fabrics, as well as binding tapes.

The firm also trades in bedsheets and comforters. Operating on a business-to-business (B2B) model, it supplies products to mattress manufacturers and resellers.

Its client list includes prominent brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products.

(KNN Bureau)