Swasth Foodtech IPO Day 1: Strong Demand, GMP Trends, and Key Details You Need to Know
The much-awaited Swasth Foodtech IPO opened for subscription on February 20, 2025, and has already witnessed robust demand from investors. The IPO will remain open until February 24, 2025, with the company aiming to raise ₹14.92 crore through this SME offering. The issue is priced at ₹94 per share, and investors are keenly tracking its subscription status, grey market premium (GMP), and financials.
Swasth Foodtech IPO Subscription Status
On Day 1, the Swasth Foodtech IPO saw strong demand, with an overall subscription of 2.13 times by 4:15 PM. Here’s how different investor segments responded:
- Retail Investors: Subscribed 3.64 times
- Non-Institutional Investors (NII): Subscribed 0.61 times
- Total Subscription: 32.04 lakh shares bid against 15.07 lakh shares available
This indicates significant interest from retail investors, while non-institutional investors are still catching up.
Swasth Foodtech IPO GMP Today
The grey market premium (GMP) for Swasth Foodtech IPO stands at ₹20, suggesting an estimated listing price of ₹114, which is 21.28% higher than the issue price of ₹94. However, this is a slight dip from the previous session when GMP was ₹24.
🔹 Note: The GMP is an unofficial indicator of demand in the unlisted market and may fluctuate before the listing date.
Key IPO Details
| IPO Details | Information |
|---|---|
| IPO Open Date | February 20, 2025 |
| IPO Close Date | February 24, 2025 |
| IPO Price | ₹94 per share |
| Lot Size | 1,200 shares |
| Minimum Investment | ₹1.12 lakh |
| Issue Size | 15.88 lakh shares |
| Total IPO Proceeds | ₹14.92 crore |
| Listing Exchange | BSE SME |
| Tentative Listing Date | February 28, 2025 |
| Lead Manager | Horizon Management Private Limited |
| Registrar | Mas Services Limited |
| Market Maker | Giriraj Stock Broking Private Limited |
Objectives of the IPO
Swasth Foodtech aims to utilize the IPO proceeds for:
✅ Establishing a new packaging line at its manufacturing facility
✅ Meeting its working capital requirements
✅ Funding general corporate purposes
About Swasth Foodtech
Founded in 2021, Swasth Foodtech specializes in the processing of rice bran oil, primarily catering to bulk buyers in the B2B segment. The company focuses on producing various grades of rice bran oil, known for its health benefits like high Vitamin E and Oryzanol content.
Apart from edible oil, Swasth Foodtech also sells byproducts such as fatty acids, gums, spent earth, and wax in the open market. Moving forward, the company plans to expand its operations by setting up a packaging unit to cater to third-party brands and small retailers.
Financial Highlights & Key Ratios
| Metrics | Value |
|---|---|
| Market Cap | ₹55.1 Cr |
| Stock P/E | 28.5 |
| Return on Capital Employed (ROCE) | 14.3% |
| Return on Equity (ROE) | 41.6% |
| Debt-to-Equity Ratio | 2.92 |
| Industry P/E | 23.7 |
| Free Cash Flow (3Yrs) | ₹ -24.2 Cr |
| Free Cash Flow (Current Year) | ₹ 0.29 Cr |
Expert Opinion on Swasth Foodtech IPO
Market analysts have a mixed stance on Swasth Foodtech’s IPO. Dilip Davda from Chittorgarh.com has given it a “may apply” rating, noting that:
🔹 The company operates in a highly competitive and low-margin industry
🔹 Recent financials appear aggressive in valuation
🔹 Well-informed investors can consider it for medium to long-term investment
Should You Invest?
- Pros: Strong demand, high retail subscription, potential upside in listing gains
- Cons: High debt levels, competitive industry, limited growth history
Final Thoughts
Swasth Foodtech IPO has made a strong debut in the subscription market, especially among retail investors. While the GMP signals a decent listing gain, potential investors should evaluate the company’s financials and long-term growth prospects before investing.
📌 Stay tuned for further updates on allotment, listing, and stock performance
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.