Swasth Foodtech India Limited, a company involved in processing rice bran oil, is preparing to make its market debut through an initial public offering (IPO) worth ₹14.92 crores, offering 15.88 lakh fresh shares. The subscription window opens on February 20, 2025, and closes on February 24, 2025. Investors can follow the company’s progress as it prepares for listing on the BSE SME platform, expected on February 28, 2025.
The public offering will include equity shares with a ₹10 face value, priced at ₹94 per share, and a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,12,800 to purchase 1 lot, while High Net-worth Individuals (HNIs) are required to invest a minimum of ₹225,600 for 2 lots. The company has set a fast post-subscription timeline, with share allotment notifications due on February 25, 2025, and its debut on the BSE SME platform on February 28, 2025. This marks a significant opportunity for investors to engage with an emerging player in India's edible oil market.
Swasth Foodtech India Limited IPO is a fundraise worth ₹14.92 crores comprising purely of a fresh issue with 80,400 shares reserved for the market maker Giriraj Stock Broking Private Limited. The IPO will be available for subscription from February 20, 2025, to February 24, 2025, providing an opportunity for investors looking to gain a stake in the edible oil space.
| Swasth Foodtech India IPO date | February 20, 2025 - February 24, 2025 |
| Fixed price | ₹94 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Fixed Price IPO |
| Fresh issue size | 15,87,600 shares amounting to ₹14.92 crores |
| Total issue size | 15,87,600 shares amounting to ₹14.92 crores |
| Listing at | BSE SME |
| Market maker portion | 80,400 - Giriraj Stock Broking Pvt Ltd |
| Shareholding post-issue | 58,57,282 shares |
| Shareholding pre-issue | 42,69,682 shares |
The Swasth Foodtech India Limited IPO opens for subscription on February 20, 2025, and closes on February 24, 2025, with allotment scheduled for February 25, 2025.
| IPO open date | February 20, 2025 (Thursday) |
| IPO close date | February 24, 2025 (Monday) |
| Basis of allotment | February 25, 2025 (Tuesday) |
| Initiation of refunds | February 27, 2025 (Thursday) |
| Credit of shares to Demat account | February 27, 2025 (Thursday) |
| Listing date on BSE / NSE SME | February 28, 2025 (Friday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 24, 2025 (Monday) |
Swasth Foodtech India Limited, established in 2021, specializes in rice bran oil processing with a focus on supplying to oil manufacturers and packers. Operating from their facility in Purba Burdwan, West Bengal, the company boasts a daily production capacity of 125 MT through their fully automated, high-grade stainless steel facility. Their primary product, rice bran oil, is known for its high Vitamin E and Oryzanol content, offering heart-healthy benefits and a high smoke point that makes it ideal for cooking.
The company operates with an efficient zero-waste model, where by-products like fatty acids, gums, wax, and spent earth are either reused or sold to industries such as soap manufacturing, cosmetics, and animal feed production. With 17 employees as of September 2024, the company is planning to expand its operations by setting up a packaging unit that will cater to both their own brand and third-party brands, targeting the small retail segment. This strategic move aims to complement their existing bulk supply business to manufacturers, refiners, and wholesalers.
The company plans to use the net proceeds from the issue for setting up a packing line at its existing manufacturing unit, meeting its working capital needs, and covering general corporate purposes.
The Swasth Foodtech India Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 30.97%, Return on Capital Employed (ROCE) at 13.48% and a Debt-to-Equity ratio of 3.75. The Return on Net-Worth (RoNW) stands at 30.97%, and the PAT Margin was 1.44%. The Price to Book Value was 6.43. The company’s market capitalisation is ₹55.06 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 36.91 | 31.84 | 30.59 | 12.65 |
| Revenue | 88.63 | 134.32 | 99.94 | 1.23 |
| Profit After Tax | 1.83 | 1.93 | 0.03 | 0.01 |
| Net Worth | 8.07 | 6.24 | 3.03 | 3.00 |
| Reserves & Surplus | 3.80 | 1.97 | 0.04 | 0.01 |
| Total Borrowing | 23.60 | 23.39 | 23.82 | 7.92 |
Amount in ₹ crores
The pre-IPO EPS is at ₹4.53 while the post-IPO EPS will be ₹6.25. Similarly, the pre-IPO Price to Earnings ratio is 20.77 and will become 15.05 post-IPO.
Swasth Foodtech India Limited benefits from modern and strategically located manufacturing facilities, ensuring operational efficiency and market accessibility. The plant's location in Purba Burdwan, West Bengal, offers proximity to crude oil sources, which supports a steady and cost-effective supply for rice bran oil production. Additionally, the company's fully automated, zero-waste manufacturing process boosts efficiency and aligns with its sustainability goals. Its strong institutional partnerships with oil manufacturers also help secure consistent demand and stability in operations.
The company is backed by an experienced management team with proven project management and implementation skills, which strengthens its ability to execute business plans and drive growth. The quality assurance and control mechanisms in place ensure that high-quality rice bran oil is produced, meeting market standards. These factors, combined with reliable raw material sourcing and a strong production capacity, position Swasth Foodtech as a promising player in the edible oil industry.
Despite its strengths, Swasth Foodtech faces several challenges. The company relies heavily on crude rice bran oil availability, making it vulnerable to disruptions in the supply chain or fluctuations in raw material costs. Additionally, it has limited brand presence in the retail market, with its revenue largely dependent on bulk sales to a few key customers. This customer concentration risk could significantly impact revenue if demand from these customers decreases or if the company loses them. The absence of long-term agreements with suppliers further exposes the company to supply chain disruptions and rising material costs.
Another weakness lies in its geographical dependence, as a large portion of sales comes from specific regions, leaving the company susceptible to regional market fluctuations or disruptions. With a limited operating history, investors may find it challenging to assess the company’s long-term growth prospects and business sustainability. Furthermore, the company's heavy reliance on a small number of customers and suppliers makes it vulnerable to any shifts in their purchasing behavior or the market conditions. Lastly, the company has minimal experience in packaging and retail distribution, which could hinder its ability to expand its market reach beyond bulk sales.
Becoming an early public investor in Swasth Foodtech India Limited offers a potential opportunity to tap into the company’s growth in the burgeoning edible oils sector. However, it’s important for investors to carefully evaluate various factors such as the company’s operational performance, financial stability, industry trends, and growth plans. Additionally, investors should align this opportunity with their own financial goals and risk tolerance. To make a well-informed decision, reviewing the offer document and seeking professional advice is strongly recommended before committing to the IPO.
What is the Swasth Foodtech India Limited IPO?
The Swasth Foodtech India Limited IPO is an BSE SME offering consisting of 15.88 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹14.92 crores. The fixed price has been set as ₹94 per share, with a minimum order quantity of 1.200 shares. This IPO will be open for subscription from February 20, 2025, to February 24, 2025. Horizon Management Private Limited is the book-running lead manager, Mas Services Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the Swasth Foodtech India IPO open?
The Swasth Foodtech India Limited IPO will open for subscription on February 20, 2025, and will close on February 24, 2025.
When is the Swasth Foodtech India IPO listing date?
The tentative listing date for the Swasth Foodtech India Limited IPO is Friday, February 28, 2025.
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