Upcoming IPO: Swasth Foodtech IPO opens on February 20; issue price band set at ₹94 apiece; check GMP | Stock Market News

Upcoming IPO: Swasth Foodtech India Ltd IPO will open for subscription on Thursday, February 20, and close on Monday, February 24. Swasth Foodtech IPO price band has been fixed at ₹94 per equity share of face value of ₹10 each. Bids can be made for a minimum of 1,200 equity shares and in multiples of 1,200 equity shares thereafter.

Swasth Foodtech India Limited is involved in the processing of rice bran oil, which it sells to oil manufacturers and packers. The company produces several grades of rice bran oil that are abundant in Vitamin E and Oryzanol, offering health benefits for the heart, a high smoke point, and a versatile, neutral taste for cooking.

The company promotes and sells rice bran oil, as well as byproducts such as fatty acids, gums, spent earth, and wax, which are produced during the processing of its products in the open market. Its facility features a refining unit dedicated to the large-scale production of rice bran oil. It intends to utilize the funds to establish a packaging unit for its own brands and those of third parties, focusing on small retailers.

As per the Prospectus, the company’s listed peers are Halder Ventres Limited (with a P/E of 11.70), and Sarveshwar Foods (with a P/E of 37.20).

In FY24, the firm recorded total revenue of ₹13,432.17 lakhs, an EBITDA of ₹472.19 lakhs, and a PAT of ₹193.24 lakhs. Furthermore, in the first half of FY25, the company generated total revenue of ₹8,863.21 lakhs, an EBITDA of ₹348.44 lakhs, and a consolidated PAT of ₹182.94 lakhs.

Swasth Foodtech IPO details

Swasth Foodtech IPO consists of a fresh issue of 15,87,600 equity shares, aggregating to ₹14.92 crore. There’s no offer for sale (OFS) component.

The company intends to use the net proceeds from the Issue for various purposes, including the establishment of a packing line at the current manufacturing facility, financing the company’s working capital needs, and for general corporate purposes.

“The IPO proceeds will be strategically utilized to enhance our manufacturing capabilities, with a major portion allocated to setting up a new packing line for improved efficiency and product quality, enabling us to expand our product portfolio.

By introducing oils such as sunflower, mustard, soya, and palm oil, we aim to cater to a wider customer base, including both institutional clients and retail customers. Our focus on packaging our products in smaller quantities will help us reach more consumers and build a strong brand presence in the domestic market,” said Dilip Chhajer, Managing Director of Swasth Foodtech India.

Horizon Management Private Limited serves as the book-running lead manager for the Swasth Foodtech IPO, and Mas Services Limited is the registrar overseeing the issue. The market maker for the Swasth Foodtech IPO is Giriraj Stock Broking Private Limited.

Swasth Foodtech IPO GMP today

Swasth Foodtech IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹94 with no premium or discount in the grey market according to investorgain.com

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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