Swasth Foodtech India Limited, a burgeoning name in the edible oil industry, has recently launched its Initial Public Offering (IPO) to fuel its expansion plans and strengthen its market presence. The IPO, which opened on February 20, 2025, and is set to close on February 24, 2025, has garnered significant attention from investors.
This article delves into the details of the Swasth Foodtech IPO, including subscription status, Grey Market Premium (GMP), company background, and key dates associated with the offering.
Company Overview
Incorporated in 2021, Swasth Foodtech India Limited deals with processing edible rice bran oil from crude oil, serving majorly edible oil manufacturers and packers. The company manufactures several grades of rice bran oil that are full of heart-healthy ingredients such as Vitamin E and Oryzanol.
Operating from a strategically located manufacturing facility in Purba Burdwan, West Bengal, Swasth Foodtech boasts a refining capacity of 125 metric tons per day. The company’s commitment to quality and innovation has positioned it as a promising player in the edible oil sector.
IPO Details
- Issue Size: The IPO comprises a fresh issue of 1.58 million equity shares, aiming to raise approximately ₹14.92 crore.
- Price Band: The shares are priced at ₹94 per equity share, with a face value of ₹10 each.
- Lot Size: The minimum bid should be for a minimum of 1,200 shares and in multiples thereof. That is, a minimum of ₹1,12,800 for retail investors.
- IPO Dates: The subscription window opened on February 20, 2025, and will close on February 24, 2025.
Subscription Status
The Swasth Foodtech IPO has witnessed a robust response from investors. As of February 21, 2025, the second day of bidding, the IPO was subscribed approximately 3.92 times. The retail investor segment saw a remarkable subscription rate of 6.77 times, indicating strong interest from individual investors.
Non-Institutional Investors (NIIs) subscribed 1.08 times, while Qualified Institutional Buyers (QIBs) had yet to make significant bids by that date. citeturn0search3
Grey Market Premium (GMP)
The Grey Market Premium serves as an informal indicator of the IPO’s potential listing performance. On February 20, 2025, Swasth Foodtech’s shares were trading at a GMP of ₹24, suggesting a premium of approximately 25.53% over the issue price.
However, by February 21, 2025, the GMP had adjusted to ₹3, reflecting a 3.2% premium. This fluctuation underscores the dynamic nature of grey market sentiments and highlights the importance of cautious optimism among investors. citeturn0search9turn0search3
Utilization of IPO Proceeds
Swasth Foodtech intends to deploy the funds raised from the IPO for several strategic initiatives:
- Establishment of a Packaging Line: A portion of the proceeds will be allocated to set up a new packaging unit at the existing manufacturing facility. This move aims to enhance operational efficiency and enable the company to cater to a broader market, including small retailers and direct consumers.
- Working Capital Requirements: Funds will be utilized to bolster the company’s working capital, ensuring smooth operations and the ability to meet increasing demand.
- General Corporate Purposes: The remaining funds will address general corporate needs, providing financial flexibility for future growth opportunities.
Key Dates to Remember
- IPO Opening Date: February 20, 2025
- IPO Closing Date: February 24, 2025
- Basis of Allotment Finalization: February 25, 2025
- Initiation of Refunds: February 27, 2025
- Credit of Shares to Demat Accounts: February 27, 2025
- Listing Date on BSE SME Platform: February 28, 2025
Registrar and Lead Managers
- Registrar: Mas Services Limited
- Lead Manager: Horizon Management Private Limited
- Market Maker: Giriraj Stock Broking Private Limited
Investor Considerations
Potential investors should conduct thorough due diligence before participating in the IPO. While the company’s growth prospects appear promising, it’s essential to consider market dynamics, the competitive landscape, and inherent risks associated with the edible oil industry.
Consulting with financial advisors and reviewing the company’s Red Herring Prospectus (RHP) can provide deeper insights into Swasth Foodtech’s financial health and strategic plans.
Conclusion
Swasth Foodtech India Limited’s IPO presents an opportunity to invest in a company positioned within the health-conscious segment of the edible oil industry.
The positive subscription figures and GMP trends reflect a favorable market reception. However, as with any investment, it’s crucial to assess all factors comprehensively to make informed decisions.