Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Rachit Prints Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Rachit Prints Ltd
Industry: Other Textile Products
Listing At: BSE SME
Overview:
Established in 2003, Rachit Prints Limited is a leading mattress fabric manufacturer in India. The company is committed to providing its customers with high-quality fabrics, specializing in top-tier wholesale and knitted fabrics that adhere to the highest industry standards. With a team of experienced professionals and a passion for quality and innovation, Rachit Prints Limited continually enhances its product offerings using only the finest materials.
The company’s journey began with the visionary founder, Mr. Anupam Kansal, and a simple yet profound goal: to revolutionize the mattress fabric industry. From the outset, the company has been dedicated to blending quality, innovation, and customer satisfaction, focusing on creating fabrics that meet the highest standards of durability and comfort.
Shariah Status
The IPO is Non-Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
- IPO Open Date: Monday, September 1, 2025
- IPO Close Date: Wednesday, September 3, 2025
- Tentative Allotment: Thursday, September 4, 2025
- Initiation of Refunds: Monday, September 5, 2025
- Credit of Shares to Demat: Monday, September 5, 2025
- Tentative Listing Date: Tuesday, September 8, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on September 3, 2025
Lot Size
- Individual Investors (Retail): The minimum and maximum application is for 2 lots, which equals 2,000 shares for a total of ₹2,98,000.
- S-HNI: The minimum application is 3 lots (3,000 shares) for ₹4,47,000, while the maximum is 6 lots (6,000 shares) for ₹8,94,000.
- B-HNI: The minimum application is 7 lots (7,000 shares) for ₹10,43,000.
Financials
Here is a financial summary of Rachit Prints Ltd. for the periods ending March 31, 2025, 2024, and 2023. All amounts are in ₹ Crore.
- Total Income:
- March 31, 2025: ₹41.78 Crore
- March 31, 2024: ₹37.11 Crore
- March 31, 2023: ₹32.39 Crore
- Profit After Tax (PAT):
- March 31, 2025: ₹4.56 Crore
- March 31, 2024: ₹2.03 Crore
- March 31, 2023: ₹0.32 Crore
- Assets:
- March 31, 2025: ₹26.09 Crore
- March 31, 2024: ₹19.02 Crore
- March 31, 2023: ₹23.27 Crore
- EBITDA:
- March 31, 2025: ₹7.23 Crore
- March 31, 2024: ₹4.27 Crore
- March 31, 2023: ₹2.01 Crore
- Net Worth:
- March 31, 2025: ₹12.31 Crore
- March 31, 2024: ₹5.46 Crore
- March 31, 2023: ₹3.43 Crore
- Reserves and Surplus:
- March 31, 2025: ₹8.68 Crore
- March 31, 2024: ₹3.55 Crore
- March 31, 2023: ₹1.52 Crore
- Total Borrowing:
- March 31, 2025: ₹9.23 Crore
- March 31, 2024: ₹6.38 Crore
- March 31, 2023: ₹14.79 Crore
The company’s revenue increased by 13% and its profit after tax (PAT) rose by 125% between the financial years ending March 31, 2025, and March 31, 2024.
KPI
Here are the Key Performance Indicators (KPIs) and their values:
- ROE (Return on Equity): 51.34%
- ROCE (Return on Capital Employed): 29.61%
- Debt/Equity: 0.75
- RoNW (Return on Net Worth): 37.06%
- PAT Margin: 10.94%
- EBITDA Margin: 17.33%
- Price to Book Value: 4.24
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.