Textile firm Raghuvir Exim files papers with SEBI for IPO

Home textiles products manufacturer Raghuvir Exim has filed draft papers with the capital markets regulator SEBI to raise funds through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), filed on March 31, the IPO is a mix of fresh issue of 1.4 crore shares and an offer-for-sale (OFS) of 45 lakh equity shares by promoter Sunil Agarwal.

The company intends to spend Rs 112.87 crore out of the net fresh issue proceeds to set up two stitching units in Ahmedabad, Gujarat, and the remaining for general corporate purposes.

Raghuvir Exim, which processes semi-finished fabrics into finished fabrics, earns 97 percent of its revenue from exports. In each of the last three fiscals, it exported products to more than 25 countries, including the United States, Canada, the United Kingdom, Israel and Australia.

Also read: IREDA, Netweb Tech, and more: Top performing IPOs of FY24

The Ahmedabad-based company recorded a net profit of Rs 19.24 crore in FY23, growing at a CAGR of 29.21 percent during FY21-FY23. During the same period, revenue from operations increased at a CAGR of 5.81 percent to Rs 247.56 crore.

Net profit for the six-month period ended September FY24 stood at Rs 11.96 crore on revenue of Rs 151.4 crore.

Also read: SEBI clears Kross, Saraswati Saree Depot IPO papers; returns Polymatech Electronics, Garuda Construction DRHPs

Unistone Capital is the sole merchant banker to the issue.