Swasth Foodtech India Limited, a leading processor of edible rice bran oil, has launched its Initial Public Offering (IPO), opening for subscription from February 20, 2025, to February 24, 2025. The IPO follows a Fixed Price Issue, comprising a fresh issue of 15.88 lakh equity shares, aggregating to ₹ 14.92 crore. The offer price is set at ₹ 94 per equity share, and the shares will be listed on BSE SME on February 28, 2025.

The IPO is managed by Horizon Management Private Limited as the Book Running Lead Manager (BRLM), Mas Services Limited as the registrar, and Giriraj Stock Broking Private Limited as the market maker.

Swasth Foodtech India IPO Details

Investors can apply for the IPO in lot sizes of 1,200 shares, with a minimum investment of ₹ 1,12,800 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for a minimum of 2 lots (2,400 shares), amounting to ₹ 2,25,600.

With an IPO price of ₹ 94 per share, the company's market capitalization at the time of listing is projected to be ₹ 55.06 crore. The IPO aims to strengthen the company’s financial position and support its future growth.

Swasth Foodtech India IPO Grey Market Premium (GMP) Trends

As of now, the Swasth Foodtech India IPO Grey Market Premium (GMP) is ₹ 0, indicating that no significant premium is being quoted in the unofficial market. The GMP depends on demand and supply factors, but it does not necessarily reflect the actual performance of the stock on listing day.

Subscription Status & Anchor Investor Participation

On the second day of the IPO (February 21, 2025, at 11:30 AM), the live subscription status shows that the issue is subscribed 2.89 times. Investors can check the real-time subscription status on the BSE website.

How to Check Swasth Foodtech India IPO Allotment Status

The Swasth Foodtech India IPO allotment status will be available on February 25, 2025. Investors can check their allotment status online on the registrar’s website by:

• Visiting the IPO allotment status page

• Selecting Swasth Foodtech India IPO from the dropdown list

• Entering their application number, PAN, or DP Client ID

• Submitting the details to view allotment results

Swasth Foodtech India IPO Objectives

The net proceeds from the IPO will be utilized for:

1. ₹ 329.87 lakh to fund setting up a packing line at its existing manufacturing unit.

2. ₹ 750 lakh for working capital requirements.

3. ₹ 220 lakh for general corporate purposes.

The capital raised will support the company’s expansion strategy and enhance operational efficiency.

Swasth Foodtech India Financial Performance & Valuation

Swasth Foodtech India has demonstrated steady growth in revenue and profitability:

• Revenue from operations:

  • ₹ 8,863.21 lakh (Sep 30, 2024)

  • ₹ 13,432.17 lakh (FY24)

  • ₹ 9,993.55 lakh (FY23)

  • ₹ 122.58 lakh (FY22)

• EBITDA:

  • ₹ 348.44 lakh (Sep 30, 2024)

  • ₹ 472.19 lakh (FY24)

  • ₹ 189.94 lakh (FY23)

  • ₹ 2.42 lakh (FY22)

• Profit After Tax (PAT):

  • ₹ 182.94 lakh (Sep 30, 2024)

  • ₹ 193.24 lakh (FY24)

  • ₹ 2.69 lakh (FY23)

  • ₹ 1.14 lakh (FY22)

Key Performance Indicators

• Pre-issue EPS: ₹ 5.03

• Post-issue EPS: ₹ 3.30

• Pre-issue P/E ratio: 18.69x

• Post-issue P/E ratio: 28.49x

• Industry average P/E: 49x

• ROCE (FY24): 13.48%

• ROE (FY24): 30.97%

• Annualized EPS: ₹ 5.70

• Post-issue PE ratio: 16.47x

These indicators suggest that the IPO is fully priced, with the company showing gradual financial growth.

Swasth Foodtech India IPO Review & Investment Recommendation

Despite stable financials and business sustainability, the lack of a positive Grey Market Premium (GMP) indicates weak demand among short-term investors. The P/E ratio of 28.49x appears high compared to the industry average, suggesting that the IPO is expensive and may not yield immediate listing gains.

Should You Subscribe to Swasth Foodtech India IPO?

Investors looking for long-term investment opportunities may find the IPO overpriced, given the high P/E ratio and low GMP. Those seeking short-term listing gains are advised to avoid this IPO due to the lack of strong market enthusiasm.

The Upcoming IPOs in this week and coming weeks are Nukleus Office, Shreenath Paper.

The Current active IPO are Beezaasan Explotech, Swasth Foodtech, HP Telecom India.

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