Incorporated in 2014, New Swan Multitech Limited is an engineering-led manufacturing company that manufactures complex and critical precision-engineered components and parts that are used in the automotive sector and agricultural farm machinery useful for modern farming.
In the automotive sector, the company offers a wide range of auto components, such as hinge body covers, seat catch components, front cover stay components, fuel filler cap components, front fender stay assemblies, rear brake arm assemblies, engine guard plates, separator breather, etc. In the agricultural sector, they design, manufacture and supply various agricultural components that serve different parts of farming, such as sowing, soil preparation, harvesting, crop residue management and crop management.
The company manufactures agricultural components at its manufacturing unit in Punjab, and the auto components are manufactured at its manufacturing facility in Gujarat.
Exports of automobile components from India have experienced steady growth, with a Compound Annual Growth Rate (CAGR) of 11.89%, rising from US$ 10.83 billion in FY 2016 to US$ 19 billion in FY 2022. As per the Automobile Component Manufacturers Association (ACMA), the exports of auto components from India can reach US$ 30 billion by 2026. As for the agricultural sector, India holds a significant position in the global agriculture sector, serving as the primary livelihood source for approximately 55% of the country's population. According to Bain & Co., the Indian agricultural sector is expected to grow substantially, reaching an estimated US$ 30-35 billion by 2025. This positive outlook for the automotive and agricultural sectors can be a positive opportunity for New Swan Multitech Limited.
New Swan Multitech Limited IPO Details
New Swan Multitech Limited IPO Dates
New Swan Multitech Limited’s IPO will open on January 11, 2024, and close on January 15, 2024. The IPO will be listed on the BSE SME on January 18, 2024.
New Swan Multitech Limited IPO Price Band
New Swan Multitech Limited is a fresh IPO of 5,016,000 shares, aggregating ₹33.11 crore. The price range of the IPO is ₹62 to ₹66 per share.
New Swan Multitech Limited IPO Lot Size
New Swan Multitech Limited’s IPO lot size is 2,000 shares.
New Swan Multitech Limited IPO Objectives
The objectives of New Swan Multitech Limited's IPO are listed below:
- To fund the capital expenditure towards purchasing certain machinery for an existing manufacturing unit located in Punjab.
- To repay a portion of certain borrowing availed by the company.
- To meet working capital requirements.
- For general corporate purposes.
Peer Details
As per DRHP, the listed peers whose business portfolio is comparable to the company are as follows:
- Sansera Engineering Limited
- Endurance Technologies
- JBM Auto Limited
How To Check the New Swan Multitech Limited Allotment Status?
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Contact Details of New Swan Multitech Limited IPO
- Registered office: 310, Vardhman Crown Mall, Plot No. 2, Sector-19, District Court Complex, Dwarka, New Delhi, South West Delhi - 110 075, India.
- Phone: +91-161-4346000
- E-mail: cs@swanagro.in
Company Financials
| Particulars | Year ending on March 31, 2023 (₹ lakh) | Year ending on March 31, 2022 (₹ lakh) | Year ending on March 31, 2021 (₹ lakh) |
|---|---|---|---|
| Revenue from Operations | 15,116.04 | 14,546.71 | 14,947.45 |
| Profit After Tax (PAT) | 991.93 | 363.14 | 342.63 |
| EBITDA | 2,022.34 | 1,149.28 | 1,061.56 |
| Total Borrowings | 3,915.70 | 4,800.59 | 4,580.55 |
| EPS (in ₹) | 7.09 | 2.59 | 2.45 |
Know before investing
Strengths
3The company has two manufacturing facilities where they manufacture the auto and agricultural components in-house.
In the agricultural sector, the company has a network of more than 200 dealers across 11 states in India. The company is also in product supply agreements with John Deere India Private Limited and Mahindra and Mahindra Limited.
Risks
3The company is dependent on the performance of the automotive sector, especially two-wheelers and the agricultural sector in India, for the sale of its products. Any adverse change in the performance of these sectors could adversely affect their business.
The cyclical and seasonal nature of automotive sales and production could adversely affect the company’s auto-components business.
The company’s agricultural implements business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may adversely impact the business.
