Swasth Foodtech India Ltd
Swasth Foodtech India Ltd IPO: A Promising Opportunity in the Edible Oil Sector
Introduction
Swasth Foodtech India Ltd, a burgeoning name in the edible oil industry, has announced its Initial Public Offering (IPO) to raise ₹14.92 crore. The IPO opened for subscription on February 20, 2025, and is set to close on February 24, 2025. This article provides a comprehensive overview of the company’s background, IPO specifics, financial health, and other pertinent details for potential investors.
Company Overview
Incorporated in 2021, Swasth Foodtech India Ltd specializes in processing rice bran oil from crude oil, catering primarily to oil manufacturers and packers. The company produces various grades of rice bran oil, known for being rich in Vitamin E and Oryzanol, which offer heart-health benefits. Operating on a business-to-business (B2B) model, Swasth Foodtech supplies bulk oil to manufacturers, packers, and repackers. The company’s manufacturing facility, located in Purba Burdwan, West Bengal, boasts a refining capacity of 125 metric tons per day. Emphasizing a zero-waste approach, the company also markets by-products such as fatty acids, gums, spent earth, and wax. Looking ahead, Swasth Foodtech plans to establish a packaging unit to expand into retail markets and offer packaging services for third-party brands.
IPO Timeline and Details
- IPO Opening Date: February 20, 2025
- IPO Closing Date: February 24, 2025
- Issue Size: ₹14.92 crore
- Price Band: ₹94 per share.
- Lot Size: 1,200 shares
- Minimum Investment: ₹112,800
- Listing Exchange: BSE SME
- Listing Date: February 28, 2025
The IPO comprises a fresh issue of 1,587,600 equity shares with no offer-for-sale component. The allocation is divided equally between Non-Institutional Investors (NII) and Retail Individual Investors (RII), each with up to 753,600 equity shares. Additionally, 80,400 equity shares are reserved for the market maker.
Financial Highlights
Swasth Foodtech has demonstrated significant growth since its inception. Below is a summary of the company’s financial performance:
| Fiscal Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin (%) | PAT Margin (%) |
|---|---|---|---|---|
| FY 2022 | 1.22 | 0.01 | 1.98 | 0.93 |
| FY 2023 | 99.89 | 0.02 | 1.90 | 0.03 |
| FY 2024 | 133.24 | 1.93 | 3.52 | 1.44 |
The company has shown a consistent increase in revenue and profitability, with improved EBITDA and PAT margins over the years.
Strengths
- Modern Manufacturing Facilities: Strategically located, fully automated plants enhance production efficiency.
- Strong Institutional Relationships: Established connections with bulk buyers ensure repeat business.
- Quality Assurance: Robust quality control measures maintain high product standards.
- Experienced Management: A seasoned leadership team drives strategic growth initiatives.
- Zero-Waste Operations: Efficient utilization of by-products contributes to additional revenue streams.
Risks
- Customer Concentration: Reliance on a limited customer base may impact revenue stability.
- Geographical Limitations: Operations concentrated in specific regions may expose the company to regional market risks.
- Commodity Price Fluctuations: Variations in raw material prices can affect profit margins.
- Regulatory Changes: Alterations in industry regulations could impact operational compliance.
- Market Competition: The edible oil sector’s competitive nature may influence pricing strategies and market share.
IPO Anchor Investors
As of now, specific details regarding anchor investors for the Swasth Foodtech IPO have not been publicly disclosed. Investors are advised to monitor official communications from the company for updates on anchor investor participation.
IPO Promoter Holding
The company’s promoters, Mr. Dilip Chhajer, Mr. Shrey Jain, and Mr. Lakshay Jain, have been instrumental in steering the company’s growth. Detailed information about the pre- and post-IPO shareholding pattern is yet to be released. Potential investors should refer to the company’s official filings for comprehensive details.
IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) serves as an informal indicator of the IPO’s potential listing performance. As of February 20, 2025, Swasth Foodtech’s shares were trading at a premium of ₹24 in the grey market, suggesting an estimated listing price of ₹118 per share, which is approximately 25.53% above the issue price.
| Date | GMP (₹) | Estimated Listing Price (₹) | Premium (%) |
|---|---|---|---|
| February 20, 2025 | 24 | 118 | 25.53 |
Please note that GMP figures are subject to change and should not be solely relied upon for investment decisions.