Raghuvir Exim Files for IPO to Expand Production and Raise Capital

4 Apr 2024 , 10:09 AM

Raghuvir Exim, a manufacturer of home textile products, has submitted draft papers to the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

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

The company plans to utilize approximately ₹112.87 Crore from the net proceeds of the fresh issue to establish two stitching units in Ahmedabad, Gujarat, and the remainder will be allocated for general corporate purposes.

Raghuvir Exim primarily processes semi-finished fabrics into finished fabrics, with 97% of its revenue generated from exports. Over the past three fiscal years, it has exported products to more than 25 countries, including the United States, Canada, the United Kingdom, Israel, and Australia.

Based in Ahmedabad, the company reported a net profit of ₹19.24 Crore in FY23, marking a compound annual growth rate (CAGR) of 29.21% during FY21-FY23. Over the same period, revenue from operations increased at a CAGR of 5.81% to ₹247.56 Crore.

For the six-month period ending September FY24, the net profit stood at ₹11.96 Crore on revenue of ₹151.4 Crore.

Unistone Capital has been appointed as the sole merchant banker to manage the issue.