Another disappointing debut! Swasth Foodtech India shares list flat on BSE SME platform

Swasth Foodtech share price: Keeping up with the recent trend of flat listings, shares of small and medium enterprise (SME) Swasth Foodtech India Ltd made an uneventful trading debut on Friday, February 28, with the stock listing at its issue price on the BSE SME platform.

As the listing price was the same as issue price, investors who were allotted shares in the IPO did not make any gains after the stock started trading in the secondary market.

The ₹14.92-crore Swasth Foodtech India IPO, which was open for subscription from February 20 to February 24, was oversubscribed 7.8 times during the three-day bidding window. The BSE data showed that the company received bids for more than 1.17 crore shares compared to 15.07 lakh shares on offer.

The Swasth Foodtech India IPO was a fixed-price issue comprising a fresh issuance of 15.88 lakh shares, with no offer-for-sale (OFS) component. Shares were offered at ₹94 apiece in a lot size of 1,200 shares, translating into a minimum investment of around ₹1.13 lakh.

The company had appointed Horizon Management Pvt. Ltd as the book-running lead manager and Mas Services Ltd as the registrar. The market maker for the IPO was Giriraj Stock Broking Pvt. Ltd.

About Swasth Foodtech India and use of IPO proceeds

Incorporated in 2021, Swasth Foodtech processes rice bran oil and markets its products in bulk to oil manufacturers and packers.

The company also sells by-products such as wax, fatty acid, lecithin, gums, and spent earth, which are derived from the oil's refining process.

Swasth Foodtech operates from the Burdwan District in West Bengal. It operates a single-location rice bran oil unit with a refining capacity of 123 metric tonnes per day.

Regarding the funds raised through the IPO, Swasth Foodtech India plans to use ₹3.29 crore to set up a packing line at the existing manufacturing unit. This packaging unit would also serve third-party brands besides the company’s own brands.

The company will use ₹7.5 crore of IPO proceeds for funding working capital requirements and ₹2.2 crore for general corporate purposes.

Swasth Foodtech is also considering entering new product categories by introducing additional healthy oils such as sunflower oil, mustard oil, soya oil and palm oil for both institutional customers and prospective end-user customers.

Swasth Foodtech India Financials

Swasth Foodtech India’s revenue from operations stood at ₹88.28 crore for the first six months of the current financial year 2024-25 ended September 2024. Net profit during the period stood at ₹1.8 crore.

For the full financial year 2023-24, the company reported revenue of ₹133.24 crore against ₹99.9 crore in FY 2022-23. Net profit in FY24 increased multifold to ₹1.93 crore against ₹2.69 lakh in the preceding fiscal.