New Swan Multitech IPO: Review, Valuation, Opening Date & GMP

New Swan Multitech Limited IPO  - Complete Overview

New Swan Multitech Limited, founded in 2014, specialises in making precise parts of bikes, cars and farming. They create several important pieces for two-wheelers like engine hangers and body covers.The company also plays a role in the agricultural sector by designing brackets and agricultural tools like rotovators and seeders, showcasing its contribution to this industry. 

As of September 30, 2023, the company boasts a product portfolio featuring 300 SKUs encompassing both agricultural equipment and auto parts. Their manufacturing facility for agricultural components is situated in Raian, Ludhiana, Punjab, while the production of auto parts takes place in Vithalapur village, Ahmedabad, Gujarat. 

In the car industry, they work with companies like Honda, MG Motors, and Mahindra & Mahindra. The company operates with a distribution network, supplying products to 200 dealers across 11 Indian states, including Punjab, Rajasthan, and Haryana

 

Their main products are:

 1.Agricultural implements Division.

• Rotovator

• Potato Harvester/Digger

• Super Seeder

• Puddler

• Potato Planter

• Roto Seeder

 

 

 2.Automotive Components Division.

• Stand Comp. Main

• Plate Engine Guard

• Bar Comp. Side Stand

• Link Engine Hanger

• Hinge,Body Cover

• Stay Comp, Head Light

 

 

New Swan Multitech Limited IPO Overview

New Swan Multitech Limited IPO date is slated to be open for subscription from January 11, 2024, to January 15, 2024. This BSE SME IPO follows a Book Built Issue IPO.

New Swan Multitech Limited IPO price is fixed at Rs. 62 to Rs. 66 per share. The upcoming BSE SME IPO will be listed on January 18, 2024.

The total issue size of this IPO amounts to Rs.33.11 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

New Swan Multitech Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	11 January 2024
IPO Closing Date	15 January 2024
IPO Allotment Date	16 January 2024
Refund initiation	17 January 2024
IPO Listing Date	18 January 2024

 

 

New Swan Multitech Limited IPO Details

IPO opening & closing date	11 December to 15 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 62 to Rs. 66 per share
Lot Size	2000 Shares
Price of 1 lot	Rs. 1,32,000
Total Issue Size	5,016,000 shares (aggregating up to Rs. 33.11 Cr)
Fresh issue	5,016,000 shares (aggregating up to Rs. 33.11 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

New Swan Multitech Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2,000
Maximum Lot Investment (Retail)	1 lot	2,000
Minimum Lot Investment (HNI)	2 lot	4,000

 

New Swan Multitech Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

In FY23, the company reported significant financial metrics.

(Amount in Lakhs)

Period	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Total Assets	12,876.43	12,348.80	11,769.68
Total Revenue	15,142.17	14,552.40	14,960.55
PAT	991.93	363.14	342.63
Net worth	2,981.75	1,989.82	1,626.68
Reserve & Surplus	2,631.74	1,639.81	1,276.67
Total Borrowings	3,915.70	4,800.59	4,580.55

 

Revenue Distribution Product Wise

FY23 revenue distribution: 37.13% from Agricultural Implements, 60.70% from Automotive Components, and 2.17% from Scrap.

( in % age)

Particulars	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Agricultural implements	37.13%	44.80%	50.88%
Automotive Components	60.70%	52.90%	47.40%
Scrap	2.17%	2.29%	1.72%
Total Revenue	100.00%	100.00%	100.00%

 

Revenue By operations

Revenue from operations for FY23 increased compared to FY22 and FY21, supplemented by additional revenue from other sources, resulting in higher total revenue for FY23.

(amount in lakhs)

Particulars	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Revenue from operations	15,116.04	14,546.71	14,947.45
Other	26.13	5.69	13.11
Total Revenue	15,142.17	14,552.40	14,960.55

  

 

The Objective of the Issue:

The company intends to use the net proceeds for the following objectives.

1. Allocating funds for capital expenditure to acquire specific machinery for the current manufacturing unit situated in Raian, Ludhiana.

2. Repaying a portion of the company's existing borrowings.

3. Addressing working capital needs.

4. Serving general corporate purposes.

 

Promoters and Management of New Swan Multitech Limited IPO:

1. Upkar Singh.

2. Barunpreet Singh Ahuja.

3. Kanwardeep Singh.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

New Swan Multitech Limited IPO Lead Managers

• Hem Securities Limited

• Share India Capital Services Private Limited

 

Peers of New Swan Multitech Limited IPO

Comparing New Swan Multitech Limited's IPO metrics with its peers reveals variations in face value, P/E ratio, and EPS.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
New Swan Multitech Limited	10.00	9.32	7.09
Sansera Engineering Limited	2.00	34.62	27.17
Endurance Technologies Limited	10.00	47.03	34.09
JBM Auto Limited	2.00	135.69	10.58

 

Evaluation

The IPO is priced within the range of Rs. 62 to Rs. 66 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 7.09 from the last year, the resulting P/E ratio is 9.31x.

- Taking into account the weighted EPS of Rs 4.82 for the last three years, the P/E ratio amounts to 13.70x.

    

Comparative Analysis with Listed Peers:

- JBM Auto Limited has a P/E ratio of 135.69x (the highest).

- Sansera Engineering Limited has a P/E ratio of 34.62x (the lowest).

- The industry's average P/E is 72.45x.

 

The IPO price range, with a P/E ratio ranging from 9.31x to 13.70x, is considered highly undervalued when compared to the industry average P/E ratio of 72.45x.

 

Dividend Policy

Dividends have not been distributed in previous fiscal years. The possibility of future dividend payments is contingent on various factors, including profits, historical dividend patterns, capital requirements, legal constraints, and other pertinent factors assessed by our Board.

 

IPO's Strengths

1. In-house Manufacturing capabilities;

2. Extensive network of dealers and customers, fostering strong relationships.

3. Diverse and comprehensive range of products offered by the company.

4. Stringent quality control mechanisms in place to ensure standardised product quality.

5. Synergistic blend of a youthful and experienced management team.

6. Committed and dedicated employee base contributing to the company's success.

 

IPO's Weaknesses

1. Changes in consumer demand.

2. Changes in laws and regulations affecting our industries.

3. Keeping pace with technological changes.

4. General economic, political, and uncontrollable risks.

5. Inflation, deflation, interest rate fluctuations.

6. Compliance with regulations in operating jurisdictions.

 

 

 

IPO GMP Today 

The latest GMP of New Swan Multitech Limited's IPO is Rs.53.

 

Conclusion

The New Swan Multitech Limited IPO presents an opportunity for investors to invest into a company with a previous record in manufacturing specifically parts for the automotive and agricultural sectors. The company's diversified product portfolio, strong client base, and a strategic presence in key manufacturing locations contribute to its overall appeal.

The IPO's pricing, falling in the range of Rs. 62 to Rs. 66 per share, seems reasonable when considering the industry's average P/E ratio and comparing it with peers. While the IPO comes with inherent strengths such as in-house manufacturing capabilities, a broad customer and dealer base, and a wide range of products, it's crucial for investors to be mindful of potential weaknesses, including market fluctuations, regulatory changes, and technological advancements.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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