Swastika Castal Limited, a pioneer in aluminium casting, launched its IPO between July 21 and July 23 2025, through a fixed price issue of ₹14.07 crore. Though the IPO saw moderate investor response with a subscription of 4.87 times, all eyes are now on the allotment status expected on July 24 2025, followed by the stock's listing on the BSE SME platform on July 28 2025.

Here's a detailed look at the company’s background, IPO structure, financial metrics, and what investors should expect going forward.

Company Background

Swastika Castal, based in Gujarat, has emerged as a leading manufacturer of precision aluminium castings for domestic and international clients. With a state-of-the-art production facility, the company focuses on quality, innovation, and operational excellence.

The company is promoted by Varun Sharda and Indra Sharda. Varun Sharda, who brings over 18 years of experience in aluminium manufacturing, has been instrumental in establishing Swastika Castal’s strong market position.

IPO Details at a Glance

• IPO Type: Fixed Price Issue

• Total Issue Size: ₹14.07 Crores

• Fresh Issue: 21.64 lakh equity shares

• Price Per Share: ₹65

• Lot Size: 2000 shares

• Minimum Investment (2 lots): ₹260000

• Market Capitalisation at Issue Price: ₹53.06 Crores

• Issue Opens: July 21 2025

• Issue Closes: July 23 2025

• Allotment Date: July 24 2025

• Listing Date: July 28 2025

• Exchange: BSE SME

Book Running Lead Manager: Horizon Management Private Limited
Registrar: Accurate Securities and Registry Private Limited
Market Maker: Horizon Financial Consultants Private Limited

IPO Subscription Status

As per data available till 07:00 PM on July 23 2025, the IPO has been subscribed 4.87 times. While not a blockbuster response, the demand shows a reasonable level of investor interest in the SME space.

Anchor Investor and Grey Market Premium (GMP)

Unlike larger IPOs, Swastika Castal did not raise funds through anchor investors. Additionally, the Grey Market Premium (GMP) for this IPO remains ₹0, indicating no expected listing gains based on current market sentiments.

Disclaimer: GMP is unregulated, unofficial, and should not be used as a firm price prediction.

How to Check Allotment Status

Allotment status will be available from July 24 2025 on the registrar’s website. Investors can check their status as follows:

1. Visit the IPO allotment page

2. Select Swastika Castal Limited IPO from the dropdown

3. Enter Application No. / PAN / DP Client ID

4. Submit to check status

Investors are advised to keep their application details handy for faster results.

Use of IPO Proceeds

Swastika Castal will utilise the net proceeds as follows:

1. Capital Expenditure for Plant and Machinery plus Shed Construction: ₹500 lakh

2. Working Capital Requirements: ₹550 lakh

3. General Corporate Purposes: ₹159.68 lakh

The investment in infrastructure and working capital will enable the company to scale operations and improve efficiency.

Financial Performance Overview

Swastika Castal has demonstrated consistent revenue growth and improving profitability:

This growth reflects operational stability and improved cost management, especially over the last two years.

Key Valuation Metrics

• Pre-Issue EPS (FY24): ₹4.39

• Post-Issue EPS (FY24): ₹3.32

• Pre-Issue P/E Ratio: 14.80x

• Post-Issue P/E Ratio: 20.14x

• Industry Average P/E Ratio: 23x

• Return on Capital Employed (ROCE): 32.74 percent

• Return on Equity (ROE): 28.17 percent

• Return on Net Worth (RoNW): 24.70 percent

The IPO appears fairly valued, though not deeply discounted, especially when compared to its industry peers.

Risks and Challenges

Investors should note the following potential concerns:

• High entry barrier for retail investors with a minimum investment of ₹260000

• No GMP movement, indicating weak listing enthusiasm

• SME IPO volatility is typically higher than mainboard listings

• Fixed price mechanism limits price discovery

These factors must be considered before making a final investment decision.

Should You Apply?

Based on available data, Swastika Castal IPO offers stable financials and operational consistency. However, with:

• Low GMP (₹0)

• Moderate subscription (4.87x)

• No anchor investor participation

• High valuation post issue

The IPO may not provide attractive listing gains.

Recommendation: ❌ Avoid for listing gains
Investors looking for long-term exposure to the aluminium casting sector may still evaluate post-listing performance.

Conclusion

Swastika Castal has positioned itself as a reliable player in aluminium casting, and the IPO is designed to support capacity enhancement and capital expenditure. While the company has shown financial discipline and growth, the lack of excitement in the grey market and modest subscription indicate limited short-term upside.

For risk-averse or listing-gain-focused investors, this IPO may be better avoided. Those interested in long-term industrial growth could consider evaluating the stock after market listing and price stabilization.

Stay tuned for allotment status today and market debut on July 28 2025.

Disclaimer: This content is for educational and informational purposes only and does not constitute financial advice or an investment recommendation. All investors should seek professional advice before investing. Market investments carry risks, and past performance is not indicative of future results.

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