Rachit Prints IPO

Rachit Prints Limited, incorporated in 2003, specializes in the manufacturing of specialty fabrics tailored for the mattress industry. Operating on a B2B model, the company supplies its products to businesses involved in reselling or mattress production. It manufactures a diverse range of fabrics including circular knitted fabrics, warp knit fabrics, printed polyester fabrics, and flame-resistant textiles. In addition to manufacturing, it also trades in comforters and bedsheets. Rachit Prints serves well-known brands such as Sleepwell, Kurlon Enterprises, and Prime Comfort Products.

The company’s product portfolio reflects its focus on innovation and quality in home furnishing textiles. Knitted fabrics made from polyester yarns are primarily used in mattresses and other home furnishing applications. Warp knit fabrics feature vertically interlocking loops that offer durability and flexibility. Its printed polyester fabrics are produced using advanced printing technologies for aesthetic appeal, while its flame-resistant fabrics include both naturally fire-resistant fibers and chemically treated materials for enhanced safety.

Rachit Prints IPO Strengths

• The company supplies reputed category leaders in the mattress industry, including Sheela Foam (Sleepwell), Kurlon Enterprises, and Prime Comfort Products, ensuring steady demand and recurring orders.
• Rachit Prints manufactures diverse high-quality fabrics such as knitted, printed, warp knit, pillow fabrics, and blinding tape, catering to various customer needs in the mattress and bedding sector.
• Their Meerut-based 30,625-sqft plant is equipped with state-of-the-art machinery sourced from India, Germany, Turkey, and China, enabling efficient and modern production processes.
• The company has demonstrated solid financial performance, with total income rising from Rs. 32.39 crore in FY23 to Rs. 41.78 crore in FY25 and PAT increasing from Rs. 0.32 crore to Rs. 4.56 crore over the same period.
• Emphasis on using premium raw materials and modern production technology ensures products meet durability, comfort, and industry standards, supporting brand reliability.
• The company secures future revenue through long-term agreements and memoranda of understanding, such as with Kurlon for 19 lakh meters of fabric, enhancing order visibility.
• Rachit Prints is recognized for timely delivery, ethical business conduct, and personalized customer service, contributing to customer retention and satisfaction.

Rachit Prints IPO Risks

• A significant share of revenue is derived from a few large customers in the mattress industry. Loss of any major client or reduction in orders may materially impact business performance.
• Prices of key raw materials, such as yarn and fabric inputs, are subject to fluctuations, which could increase costs and compress margins if not managed through contracts or price revisions.
• The textile and specialty fabric sector is highly competitive, with pressure from both organized and unorganized players potentially leading to price wars and loss of market share.
• The business is working capital intensive, requiring large investments in inventory and receivables. Inefficiencies or delays in collections can create liquidity pressure.
• Rachit Prints derives most of its revenue from mattress and pillow fabrics. Limited diversification makes it vulnerable to downturns in the bedding and mattress segment.
• Any failure to comply with textile industry regulations, labor laws, or environmental standards could lead to penalties, operational interruptions, or reputational damage.
• Failure to timely adopt emerging textile technologies or innovation in fabric manufacturing could impact competitiveness and operational efficiency.