Sawaliya Food Products Private Limited, established in 2014, is gearing up for its Initial Public Offering (IPO) starting August 7, 2025, and closing on August 11, 2025. The company, engaged in manufacturing and exporting dehydrated vegetables such as onions, garlic, carrots, and French beans, is launching a Book Built Issue worth ₹34.83 crore.

This IPO comprises a Fresh Issue of 26.02 lakh shares worth ₹31.23 crore, and an Offer for Sale (OFS) of 3 lakh shares worth ₹3.6 crore. The price band is fixed between ₹114 and ₹120 per equity share. The issue is set to list on the NSE SME platform on or about August 14, 2025.

The market capitalisation at the upper band of ₹120 per share stands at ₹119.01 crore. The lot size is 1,200 shares, and retail investors must apply for at least 2 lots, meaning a minimum investment of ₹2,88,000.

About the Company

Sawaliya Food Products is known for its effective food processing and hygienic packaging techniques. Their products retain vital nutrients and vitamins, making them a reliable name in the dehydrated food space. Their robust product range caters to domestic and export markets alike.

Their manufacturing unit will soon see a boost through the IPO proceeds, which will fund the installation of new machinery, upgrade existing equipment, and set up a rooftop solar PV system of 149.04 KWp capacity. The company also plans to utilise funds for working capital needs, partial debt repayment, and general corporate purposes.

The company's leadership includes Promoters Raghav Somani and Priya Somani, who bring extensive experience in the food processing industry. With over two decades of combined domain knowledge, the management team appears well-equipped for future growth.

Financial Performance

The company has shown consistent financial growth over the last three years:

• FY 2022-23: Revenue ₹1,530.26 lakh, EBITDA ₹190.26 lakh, PAT ₹59.41 lakh

• FY 2023-24: Revenue ₹2,367.04 lakh, EBITDA ₹639.56 lakh, PAT ₹311.96 lakh

• FY 2024-25: Revenue ₹3,433.84 lakh, EBITDA ₹1,237.24 lakh, PAT ₹694.57 lakh

These figures demonstrate a compounded annual growth rate (CAGR) that reflects operational efficiency and business expansion.

Key Financial Ratios and Valuation

• Pre-Issue EPS (FY24): ₹9.49

• Post-Issue EPS: ₹7.00

• Pre-Issue P/E: 12.64x

• Post-Issue P/E: 17.14x

• Industry P/E: 25.40x

• ROCE (FY24): 48.96%

• ROE (FY24): 75.70%

• RoNW: 54.91%

These return ratios are impressive, indicating high operational returns. However, the valuation appears slightly expensive compared to other SME peers considering the post-issue P/E.

IPO Objectives in Detail

The net proceeds from the IPO will be deployed as follows:

1. Capital Expenditure: ₹748.66 lakh for machinery purchase, upgrade, and solar setup

2. Working Capital: ₹1,000.00 lakh

3. Debt Repayment: ₹461.15 lakh

4. General Corporate Purpose

This approach supports business expansion and operational efficiency. The investment in a solar PV system also indicates a sustainability-forward outlook.

IPO GMP (Grey Market Premium)

As of August 5, 2025, the GMP stands at ₹0, meaning no premium or discount is currently being offered in the unregulated grey market. This signals a lack of retail excitement or institutional push, suggesting limited listing gains.

It’s important to remember that GMP is unofficial and speculative, and should not be the sole criteria for investment.

IPO Registrar & Lead Manager

• Lead Manager: Unistone Capital Private Limited

• Registrar: Skyline Financial Services Private Limited

• Market Maker: Alacrity Securities Limited

These are reputed players in the SME IPO ecosystem, suggesting a structured and regulated IPO process.

Allotment and Listing

• Allotment Date: August 12, 2025

• Tentative Listing Date: August 14, 2025

Investors can check their IPO allotment status through the registrar’s portal using PAN, application number, or DP ID.

Should You Subscribe? Expert Recommendation

Despite a strong financial track record and impressive return ratios, the flat GMP is a red flag for short-term investors looking for listing gains. The relatively high investment threshold of ₹2.88 lakh also limits retail participation.

For long-term investors, the company’s growth trajectory, sector demand, and renewable energy investment might offer value. However, listing-day gains appear unlikely, and hence, we recommend avoiding the IPO for short-term profit.

Conclusion

Sawaliya Food Products Limited is a financially healthy SME with strong profitability and growth. But the lack of GMP and high post-issue valuation indicate a muted debut. Investors should weigh their risk appetite and investment horizon before subscribing. For now, listing gain seekers may avoid this IPO.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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