Swasth Foodtech India, a key player in the edible oil processing industry, has successfully concluded its Initial Public Offering (IPO) with an overwhelming 7.48x subscription on the final day. The IPO, which opened for subscription on February 20, 2025, and closed on February 24, 2025, received strong investor interest, particularly from retail and high-net-worth investors. However, the Grey Market Premium (GMP) remains at ₹0, indicating no unofficial premium before listing.

Swasth Foodtech India IPO Overview

The Swasth Foodtech India IPO was a Fixed Price Issue of ₹14.92 Crores, consisting entirely of a Fresh Issue of 15.88 Lakh Shares. The IPO was priced at ₹94 per equity share, with a lot size of 1,200 shares. Retail investors were required to invest a minimum of ₹1,12,800, while HNWIs needed to invest at least ₹2,25,600. The company’s market capitalization at the IPO price stands at ₹55.06 Crores.

Horizon Management Private Limited acted as the book-running lead manager, with Mas Services Limited serving as the registrar. Giriraj Stock Broking Private Limited was appointed as the market maker for this IPO.

Subscription Status & Investor Interest

On the final day, Swasth Foodtech India IPO was subscribed 7.48 times, highlighting strong demand. This subscription breakdown is a key indicator of investor sentiment:

• Retail Investors: Subscribed significantly, showing faith in the company’s growth potential.
• HNWIs and Institutional Investors: Also showed moderate participation, signaling confidence in the company’s future prospects.

Swasth Foodtech India IPO Allotment & Listing Date

Investors eagerly await the IPO allotment, which is set to be finalized on February 25, 2025. The allotted shares will be credited to investors’ Demat accounts in preparation for the listing on BSE SME, scheduled for February 28, 2025.

To check IPO allotment status, investors can follow these simple steps:

• Visit the Registrar’s website (Mas Services Limited).
• Select Swasth Foodtech India Limited IPO from the dropdown.
• Enter Application Number, PAN, or DP Client ID.
• Submit the details to view allotment status.

Grey Market Premium (GMP) Analysis

Despite high subscription numbers, the Grey Market Premium (GMP) remains at ₹0, meaning no unofficial trading premium before listing. The absence of a GMP suggests that the stock may list close to or slightly below its issue price. Investors should note that GMP is speculative and does not guarantee actual listing performance.

Financial Performance & Valuation Metrics

Swasth Foodtech India Limited has demonstrated steady financial growth in recent years. Below are the key financial highlights:

• Revenue from Operations: ₹8,863.21 Lakh (Sep 2024), ₹13,432.17 Lakh (FY24), ₹9,993.55 Lakh (FY23), ₹122.58 Lakh (FY22).
• EBITDA: ₹348.44 Lakh (Sep 2024), ₹472.19 Lakh (FY24), ₹189.94 Lakh (FY23), ₹2.42 Lakh (FY22).
• Profit After Tax (PAT): ₹182.94 Lakh (Sep 2024), ₹193.24 Lakh (FY24), ₹2.69 Lakh (FY23), ₹1.14 Lakh (FY22).

The pre-issue EPS stands at ₹5.03, while the post-issue EPS is ₹3.30. The Price-to-Earnings (P/E) ratio is 18.69x pre-issue and 28.49x post-issue. Additionally, the Return on Capital Employed (ROCE) is 13.48% and Return on Equity (ROE) is 30.97%, indicating a well-managed financial structure.

Objectives of the IPO

The company plans to utilize the net proceeds from the IPO as follows:

1. ₹3.29 Crores for setting up a new packaging line at its existing facility.
2. ₹7.50 Crores for working capital requirements.
3. ₹2.20 Crores for general corporate purposes.

Should You Invest in Swasth Foodtech India IPO?

While Swasth Foodtech India has a strong financial track record and a growing market presence, the IPO valuation appears fully priced. Additionally, the neutral GMP suggests limited listing gains. Given the high P/E ratio post-issue (28.49x) and moderate growth metrics, investors should carefully analyze their risk appetite before investing.

Final Verdict: Avoid for Listing Gains, Cautious Approach for Long-Term Investment

Market experts suggest that the Swasth Foodtech India IPO is not ideal for short-term listing gains due to the neutral GMP and high valuation. Long-term investors should evaluate the company’s growth potential, market positioning, and financial sustainability before making a decision.

Conclusion

The Swasth Foodtech India IPO saw strong demand, closing with a 7.48x subscription, but the Grey Market Premium (GMP) remains at ₹0. The company has a steady financial track record, but the valuation appears high, making it a risky bet for short-term investors. With the allotment date on February 25 and listing on February 28, investors should carefully assess market trends before making a move.

The Upcoming IPOs in this week and coming weeks are Balaji Phosphates, NAPS Global.

The Current active IPO are Shreenath Paper, Nukleus Office.

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