Rachit Prints share price made a weak debut in the Indian stock market today. The stock was listed on Monday at ₹119.20 apiece on BSE SME, a discount of 20 percent to its issue price of ₹149 per share.
Rachit Prints IPO listing was weaker than the muted Street expectations as indicated by the grey market premium (GMP). Rachit Prints IPO GMP today was ₹0 per share. This indicated a flat listing of shares.
About Rachit Prints IPO
Rachit Prints Limited’s IPO, which opened for public subscription on September 1 and closed on September 3, was successfully listed on the BSE SME platform on September 8. The allotment was finalized on September 4, paving the way for the debut.
The company raised ₹19.50 crore through this book-building issue, which comprised a completely fresh issue of 13 lakh equity shares. The IPO price was fixed at ₹149 per share. Investors were required to apply for a minimum of 1,000 shares, translating to a minimum investment of ₹2,98,000 for retail participants.
The IPO witnessed strong investor interest, with an overall subscription of 1.97 times. The retail investor category was the most active, subscribing 2.74 times, followed by Qualified Institutional Buyers (QIBs) at 1 time, and Non-Institutional Investors (NIIs) at 1.25 times.
Rachit Prints stated that the net proceeds from the IPO will be used to meet working capital requirements, fund the company’s expansion plan (including capital expenditure for plant and machinery), partially prepay term loans, and cover general corporate purposes.
Khambatta Securities Ltd. acted as the book-running lead manager for the IPO, Maashitla Securities Pvt. Ltd. was the registrar, and Prabhat Financial Services Ltd. was the market maker.
About Rachit Prints
Founded in 2003, Rachit Prints Limited is engaged in the manufacturing of specialty fabrics used in the mattress industry. The company produces knitted, printed, warp-knit, and pillow fabrics, along with binding tape, and also trades comforters and bedsheets.
Rachit Prints operates on a B2B model, supplying its products to resellers and mattress manufacturers. The company counts well-known brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products among its customers.
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