Swastika Castal Limited, a company known for its pioneering work in the aluminium casting industry, has launched its Fixed Price IPO on July 21, 2025, with a total issue size of ₹14.07 Crores through a Fresh Issue of 21.64 lakh equity shares priced at ₹65 per share.

The subscription window is open till July 23, 2025, and the shares are proposed to be listed on the BSE SME platform with a tentative date of July 28, 2025. Despite the company’s technical expertise and growing revenue base, the absence of a Grey Market Premium (GMP) indicates a low demand from the investor community, particularly those seeking listing gains.

IPO Details at a Glance

• IPO Type: Fixed Price Issue

• IPO Price: ₹65 per share

• Issue Size: ₹14.07 Crores

• Lot Size: 2,000 shares

• Minimum Investment: 2 lots (4,000 shares) = ₹2,60,000

• Market Capitalisation (at issue price): ₹53.06 Crores

• Book Running Lead Manager (BRLM): Horizon Management Private Limited

• Registrar to the Issue: Accurate Securities & Registry Private Limited

• Market Maker: Horizon Financial Consultants Private Limited

About Swastika Castal

Swastika Castal has established itself as a key player in the precision aluminium casting segment, providing quality and innovation to industries across India and international markets. The company operates from a state-of-the-art facility in Gujarat, serving both OEMs and industrial component buyers.

Over the years, Swastika Castal has evolved into a technologically equipped manufacturing unit with specialised casting, machining, and quality testing capabilities.

The business is spearheaded by Promoters Varun Sharda and Indra Sharda. Notably, Varun Sharda, with 18 years of experience in the aluminium industry, has been instrumental in shaping the company’s strategic vision and growth.

Financial Performance

Swastika Castal has recorded consistent growth in revenue and profitability over the last three financial years:

• Revenue from Operations:

  • FY23: ₹2,441.34 Lakh

  • FY24: ₹2,335.46 Lakh

  • FY25: ₹3,031.28 Lakh

• EBITDA:

  • FY23: ₹240.64 Lakh

  • FY24: ₹256.51 Lakh

  • FY25: ₹520.62 Lakh

• Profit After Tax (PAT):

  • FY23: ₹58.47 Lakh

  • FY24: ₹64.98 Lakh

  • FY25: ₹263.49 Lakh

These numbers indicate a steady financial growth, particularly in FY25 with a notable jump in profit margins. The company appears to have managed operational scale-up effectively.

Valuation Metrics and Ratios

Swastika Castal IPO is being offered at:

• 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 P/E: ~23x

Additional financial indicators:

• Return on Capital Employed (ROCE): 32.74%

• Return on Equity (ROE): 28.17%

• Return on Net Worth (RoNW): 24.70%

While these metrics suggest a financially sound company, the premium valuation combined with lack of investor enthusiasm dampens the listing prospects.

Use of IPO Proceeds

The net proceeds from the IPO will be used for the following purposes:

1. ₹500.00 Lakhs for Capital Expenditure, including plant & machinery and construction of shed & building

2. ₹550.00 Lakhs for Working Capital Requirements

3. ₹159.68 Lakhs for General Corporate Purposes

This allocation highlights a focus on production scale-up and liquidity support, which may enable the company to target larger industrial orders in future.

Live Subscription Status and Market Sentiment

As of 11:30 AM on July 22, 2025, the IPO has been subscribed 2.14 times, suggesting moderate investor interest. However, the absence of institutional investors or anchor investors also indicates limited confidence in early-stage returns.

Grey Market Premium (GMP) Overview

The GMP for Swastika Castal IPO is ₹0 as of the latest update on July 19, 2025. This means:

• No expected listing premium

• Market expectation of flat listing

• Little-to-no retail momentum or speculation

This is a critical red flag for investors expecting short-term profits through listing gains.

Allotment and Listing Information

The allotment of shares is scheduled for July 24, 2025, and the results will be available on the registrar’s website. Investors can check their allotment status by entering:

• PAN

• DP ID / Client ID

• Application Number

Once allotted, the equity shares will be listed on the BSE SME on Monday, July 28, 2025.

Conclusion and Investment Verdict

Swastika Castal has demonstrated moderate financial growth, a focused business strategy, and credible leadership. However, the lack of listing buzz, absence of GMP, and fair-to-premium valuation present concerns for investors seeking quick returns.

The fixed pricing model and SME listing also limit liquidity and price discovery, making this IPO less attractive for retail participants focused on near-term gains.

Recommendation: AVOID the Swastika Castal IPO for Listing Gains

Long-term investors may track the company’s post-listing performance and revisit the stock based on future order books, margin expansion, and scale efficiency.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Sellowrap Industries, Repono, Shanti Gold International, Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, Patel Chem Specialities, TSC India, NSDL.

The Current active IPO are Monarch Surveyors & Engineering Consultants, Swastika Castal, Savy Infra.

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