Swasth Foodtech India IPO booked 2.2 times on Day 1; check issue size, price band & more

The initial public offering (IPO) of Swasth Foodtech India Ltd opened to strong demand on Thursday as the issue was fully subscribed within hours of launch, led by retail investors. The ₹14.92-crore IPO is open for subscription from February 20 to February 24.

The BSE SME issue received bids for more than 34.22 lakh shares, against 15.07 lakh shares on offer on the first day of subscription. According to BSE data, the IPO was booked 2.27 times overall.

The Non-Institutional Investors (NIIs) submitted bids for more than 5.12 lakh shares against 7.53 lakh shares reserved for the segment. The NIIs subscribed only 68% of their allocated quota. The retail portion of the IPO was booked 3.86 times, with bids for over 29 lakh shares against 7.53 lakh shares on offer.

Here’s a look at all the key details about the BSE SME IPO for the investors interested in applying for the shares of Swasth Foodtech India Ltd.

Swasth Foodtech India IPO key details

Swasth Foodtech India IPO consists of only a fresh issue of 15.88 lakh equity shares, aggregating to an amount of ₹14.92 crore. The issue does not have any offer for sale (OFS) component.

The company has fixed the issue price at ₹94 per share. The minimum lot size is 1,200 shares, aggregating to a minimum investment of ₹1,29,600 for at least a single lot per application by the retail investors.

Horizon Management Private Ltd is the book-running lead manager of the Swasth Foodtech India IPO. The registrar for the issue is Mas Services Ltd. The market maker for the IPO is Giriraj Stock Broking Private Ltd.

Swasth Foodtech India IPO dates

Swasth Foodtech India IPO allotment status is expected to be finalised on Tuesday, February 25. Refunds will be issued on Thursday, February 27, and the allottees will also receive shares in the Demat accounts on the same day.

The company has proposed to list its shares on the BSE SME platform on Friday, February 28.

About Swasth Foodtech India and use of IPO proceeds

Swasth Foodtech India specialises in processing rice bran oil for sale to oil manufacturers and packers. Incorporated in 2021, the company produces multiple grades of rice bran oil, which are rich in Vitamin E, healthy fats, and Oryzanol.

Besides rice bran oil, Swasth Foodtech also markets products generated during its processing operations, such as fatty acids, gums, spent earth, and wax.

The company has proposed to utilise the net proceeds generated from the fresh issue to set up a packing line at its existing manufacturing unit, while also funding its working capital requirements. The funds will also be used for the company’s general corporate purposes.

Swasth Foodtech India will allocate approximately ₹7.5 crore from the IPO proceeds for its working capital requirements. It will invest ₹3.29 crore to set up a packing line at its manufacturing unit. Another ₹2.2 crore will be spent towards the company’s general corporate purposes.

Swasth Foodtech India financials

As of June 30, 2024, the company’s revenue from operations stood at ₹40.35 crore. In the same period, it reported a profit after tax (PAT) of ₹88.24 lakh.

For the financial year ended March 31, 2024, Swasth Foodtech India’s revenue from operations was recorded at ₹133.24 crore compared to ₹99.89 crore in the preceding fiscal (FY23).

The company’s profit after tax (PAT) for FY24 increased multifold to ₹1.93 crore from ₹2.69 lakh in FY23.