Swasth Foodtech IPO: Review, Price, Valuation, Date & GMP

Swasth Foodtech IPO-Complete Overview

Swasth Foodtech IPO under the SME IPO category is a fixed price issue of Rs.14.92 Cr (15.88 lac Shares) by Swasth Foodtech India Limited, which was incorporated in 2021 in the oil refining business, i.e. processing rice bran oil for oil manufacturers and packers. 

The company produces many grades of rice bran oil, rich in vitamin E and oryzanol giving heart-friendly benefits with high smoking points and versatile neutral flavor for cooking. The company markets and sells rice bran oil along with by-products such as fatty acid, gums, spent earth, and wax, which have been generated in the processing of its goods in the open market. 

The facility includes the refinery unit deploying a bulk rice bran oil production facility. The intent is to use the revenues to establish a packaging unit for its own and third-party brands, targeting small retailers and operating a zero-waste unit where it reuses or sells by-products like gums, wax, and fatty acids. The facility for further refining of oil and extraction of by-products is fully automated, and state of the art, with hygienic production practices in place using high-grade stainless steel.

With a production capacity of 125 MT per day, it has a manufacturing facility in Purba Burdwan, West Bengal. 

Products:

• Rice Bran Oil: The company processes crude rice bran oil into by-products from domestically sourced oil and markets bulk oil to manufacturers, refiners, and wholesalers who are in turn interested in health. 
• By-Products: The company produces fatty acids, wax, gums, and spent earth, for use by industries such as soap-making, cosmetics, and animal feeds.

 

Swasth Foodtech India Limited IPO Overview

This new SME IPO comprises a wholly fresh issue of 15.88 lac Shares (Rs.14.92 Cr). The Swasth Foodtech India Limited IPO date is from 19 Feb to 21 Feb 2025.

This upcoming IPO i.e. the Swasth Foodtech IPO Price is Rs.94 per Share. The listing date is 27 Feb 2025 at BSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

Click to open a Demat account and apply for the IPO.

 

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

Net Cash Flow In Multiple Activities	30 Sep 2024	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	43.80	36.08	(1,227.61)
Net Cash Flow Investing Activities	11.90	(5.51)	(140.08)
Net Cash Flow Financing Activities	(71.53)	(102.93)	1473.09

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

• Installation of a packing line at the current production facility.

• Financing the company's operating cash needs.

• General corporate purposes.

Peers of Swasth Foodtech Ltd.

 

Evaluation

The IPO price is Rs.94 for each Share.

 

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.5.03 from the last year, the resulting P/E ratio is 18.69x.

Considering the weighted EPS of Rs.2.55 for the last three years, the P/E ratio is 36.84x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 24.45x.

In simple words, the P/E ratio of this IPO (18.69x), compared with the industry’s average P/E of 24.45x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Manufacturing plants of contemporaneous design and strategic location.

• The proximity of crude oil is available to the manufacturing facility.

• Quality Assurance and Quality Control of the products.

 

IPO’s Weaknesses

• Large customer sales contribute to the company's revenues. Any reductions in orders or loss of these customers would therefore result in an adverse effect on business operations.

• The company relies on very few suppliers for their procurement of key raw materials. Disruption in supply and/or increase in costs of these key raw materials could therefore influence the company, as no long-term agreements are in place with these suppliers.

• Market fluctuations influence the prices of rice bran oil and other products. It would apply to profitability.

• Changes in laws, GST rate changes, or regulations may harm business operations.

 

 

Swasth Foodtech IPO GMP

Swasth Foodtech IPO GMP has not started yet as of 17 Feb 2025.

IPO Timetable (Tentative)

The Swasth Foodtech IPO date is 19 Feb with tentative allotment on 24 Feb, refund initiation on 25 Feb, and listing on 27 Feb 2025.

 

Swasth Foodtech IPO Details 

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 15,87,600 Shares (Rs.14.92 Cr).

 

Swasth Foodtech IPO Lot Details 

The Swasth Foodtech IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,12,800 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,25,600.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Swasth Foodtech Ltd.

• Dilip Chhajer.

• Shrey Jain.

• Lakshay Jain.

• Vandana Chhajer.

• Chhajer Agro Products Private Limited.

• Dilip Chand Chhajer (HUF).

 

 

 

IPO Lead Managers

• Horizon Management Private Limited.

Dividend Policy

The company has not paid a dividend in the last 3 financial years.

Conclusion

To expand its packaging unit and meet operational requirements, Swasth Foodtech IPO is available at Rs.94. The company specializes in the production of rice bran oil and its by-products and has a strong presence in several states. Before investing, market risks, and business growth opportunities need to be taken into consideration by the investors.

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.

DISCLAIMER: This is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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