Swasth Foodtech India IPO: Key Details, Subscription, GMP & Allotment

Swasth Foodtech India Limited, a company specializing in processing edible rice bran oil, is launching its Initial Public Offering (IPO) on February 20, 2025. The IPO is a Fixed Price Issue of ₹14.92 crores, entirely consisting of a Fresh Issue of 15.88 lakh shares.

The IPO aims to raise funds for business expansion, working capital requirements, and general corporate purposes. The shares will be listed on BSE SME, with a tentative listing date of February 28, 2025.

About Swasth Foodtech India

Swasth Foodtech India processes and supplies various grades of edible rice bran oil, which is known for its high Vitamin E and Oryzanol content. The oil has a neutral flavour, a balanced fat profile, and a high smoke point, making it a preferred choice for manufacturers and packers.

The company also markets byproducts like fatty acids, gums, spent earth, and wax, promoting sustainable production and waste utilization.

Swasth Foodtech India IPO Details

• IPO Price: ₹94 per equity share
• Total Issue Size: ₹14.92 Crores
• Lot Size: 1,200 shares
• Retail Investor Minimum Investment: ₹1,12,800
• HNI Minimum Investment: ₹2,25,600 (2 lots, 2,400 shares)
• Market Capitalization at IPO Price: ₹55.06 Crores

Important Dates

IPO Subscription & Market Makers

The book-running lead manager for the IPO is Horizon Management Private Limited, and Mas Services Limited is the registrar. Giriraj Stock Broking Private Limited is acting as the market maker.

Grey Market Premium (GMP) & Expected Listing Price

As of February 17, 2025, the Grey Market Premium (GMP) is ₹0, meaning there is no premium or discount on the IPO price.

Note: GMP fluctuates based on demand and supply and does not guarantee actual listing gains.

How to Check IPO Allotment Status

Investors can check their allotment status online using the following steps:

1. Visit the IPO allotment status page on the registrar's website.
2. Select "Swasth Foodtech India Limited IPO" from the list.
3. Enter your application number, PAN, or DP Client ID.
4. Click submit to view the allotment status.

Objectives of Swasth Foodtech India IPO

The company plans to use the funds raised from the IPO for the following purposes:

• ₹329.87 Lakhs for setting up a new packing line at its existing manufacturing unit.
• ₹750.00 Lakhs to fund working capital requirements.
• ₹220.00 Lakhs for general corporate purposes.

Financial Performance & Valuation

Revenue & Profit Growth

The company has shown steady revenue growth over the years, indicating improving financial performance.

Key Ratios & Valuation

The IPO appears fully priced, with moderate earnings potential based on current financials.

IPO Review & Recommendation

Strengths:

• Established player in edible rice bran oil processing.
• Strong focus on sustainability through byproduct utilization.
• Steady revenue growth over the years.

Risks:

• GMP indicates no premium, suggesting low listing gains.
• Moderate profit margins compared to industry peers.
• Highly competitive market in edible oils.

Should You Invest in Swasth Foodtech India IPO?

Given the current Grey Market Premium (₹0) and the valuation metrics, the IPO does not show signs of significant listing gains. While the company's financials are improving, the high P/E ratio suggests that the stock may be fully priced at the issue price of ₹94.

Verdict: Investors may avoid this IPO if looking for short-term listing gains. However, those interested in the edible oil sector with a long-term perspective can analyze post-listing performance before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Update.