Swasth Foodtech India Limited specializes in producing premium edible rice bran oil, renowned for its balanced fat profile, high smoke point, and neutral flavor. This product is especially suitable for manufacturers and packers, offering a healthier choice for cooking applications. Additionally, the company is committed to sustainability, marketing byproducts like fatty acids, gums, spent earth, and wax.

The company is now launching its Fixed Price IPO, raising ₹14.92 Crores through a fresh issue of 15.88 lakh shares. The subscription period for the Swasth Foodtech India IPO is from February 20, 2025, to February 24, 2025, with the IPO price set at ₹94 per equity share. At this price, the market capitalization will be ₹55.06 Crores, and the lot size is set to be 1,200 shares. Retail investors will need to invest a minimum of ₹1,12,800, while High-Net-Worth Individuals (HNIs) must invest in a minimum of two lots (2,400 shares), amounting to ₹2,25,600.

The IPO allotment is set for February 25, 2025, and the shares are expected to be listed on the BSE SME on or around February 28, 2025.

Subscription Status and Market Insights:

As of February 24, 2025, the Swasth Foodtech India IPO live subscription status indicates that the IPO has been subscribed 7.48 times, showing strong demand among investors. The Grey Market Premium (GMP) for the IPO is reported at ₹0, meaning there is no significant pre-listing excitement. It is important to note that the GMP is not a reliable indicator for price discovery and is subject to unorganized trading conditions.

How to Check IPO Allotment Status:

The allotment date for Swasth Foodtech India IPO is February 25, 2025. Investors can easily check the allotment status by visiting the official Registrar Website. To check, investors should:

• Navigate to the IPO allotment status page.
• Select Swasth Foodtech India Limited IPO from the dropdown.
• Enter their application number, PAN, or DP Client ID.
• Submit the details to view their allotment status.

This process is simple and will help investors quickly determine if they have been allotted shares.

Financial Overview and Business Performance:

Swasth Foodtech India has shown steady growth in its financial performance over the past few years. The revenues for FY24 amounted to ₹8,863.21 Lakh, with a Profit After Tax (PAT) of ₹182.94 Lakh. This reflects a positive financial trajectory, with EBITDA for FY24 standing at ₹348.44 Lakh. The company has significantly increased its operations from just ₹122.58 Lakh in FY22, indicating a robust growth path.

The pre-issue earnings per share (EPS) stands at ₹5.03, while the post-issue EPS for FY24 is projected at ₹3.30. The pre-issue price-to-earnings (P/E) ratio is 18.69x, and the post-issue P/E ratio rises to 28.49x, which places the IPO in the fully priced category. The company’s Return on Capital Employed (ROCE) is 13.48%, while its Return on Equity (ROE) for FY24 is 30.97%.

Investment Consideration and Recommendation:

Based on the financial performance, valuation, and the GMP trends, Swasth Foodtech India IPO appears to be fully priced, with little potential for immediate listing gains. Given the market conditions and the IPO’s valuation metrics, we recommend that investors avoid the IPO for both listing gains and long-term investment purposes.

Conclusion:

While Swasth Foodtech India presents a growing business with strong financials and a healthy product portfolio, its IPO pricing and lack of GMP excitement suggest limited short-term investment opportunities. Investors should approach this IPO cautiously, focusing on long-term value rather than immediate market movements. The company's focus on sustainability and value-added byproducts provides a promising outlook in the foodtech sector, but prospective investors should assess their risk appetite before participating.

By keeping these insights in mind, investors can make more informed decisions regarding their participation in the Swasth Foodtech India IPO, especially in terms of pricing and market trends.

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