Swasth Foodtech is launching an IPO with a fixed issue size of ₹14.92 crore, comprising a fresh issue of 15.88 lakh shares. The subscription window will open on February 20, 2025, and close on February 24, 2025. The allotment is expected to be finalised on February 25, 2025, with a tentative listing date set for February 28, 2025, on the BSE SME platform.
The IPO is priced at ₹94 per share, with a minimum application lot size of 1,200 shares. Retail investors must invest at least ₹1,12,800, while high-net-worth individuals (HNIs) need a minimum of two lots (2,400 shares), amounting to ₹2,25,600.
Horizon Management Private Limited is the book-running lead manager for this IPO, while Mas Services Limited is handling the registrar duties. Giriraj Stock Broking Private Limited has been appointed as the market maker for the issue. Investors looking for detailed insights should refer to the Swasth Foodtech IPO Red Herring Prospectus (RHP) before making investment decisions.
Industry Outlook
- India's edible oil demand is growing faster than production, with a supply gap of 55% met through imports. The estimated oilseed production for 2021-22 rose to 376.97 LMT from 359.45 LMT in 2020-21.
- The processing and production of solvent-extracted oils have also shown positive growth trends. In OY 2022-23, solvent extraction processing from oilseeds, oilcakes, and rice bran increased to 265 lakh tonnes from 250 lakh tonnes in the previous year. As a result, the total production of solvent-extracted oils rose to 40.8 lakh tonnes from 38.5 lakh tonnes in 2021-22.
Swasth Foodtech IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funds will be used to set up a new packing line at the existing unit, improving efficiency and production capacity.
- A portion of the proceeds will support daily working capital needs, ensuring smooth business operations and growth.
- The remaining funds will be used for general corporate purposes.
About Swasth Foodtech India Limited
Swasth Foodtech India Limited is a growing company engaged in processing rice bran oil from crude oil, catering to oil manufacturers and packers. Originally incorporated as Swasth Foodtech India Private Limited on February 2, 2021, the company transitioned to a public limited entity on May 20, 2024. Operating from a strategically located manufacturing facility in Purba Burdwan, West Bengal, the company has a refining capacity of 125 MT per day, enabling efficient processing and production.
Rice bran oil, known for its balanced composition of polyunsaturated and monounsaturated fats, is considered a healthier alternative to other cooking oils. Rich in Vitamin E and Oryzanol, it supports heart health and is ideal for high-heat cooking.
The company produces rice bran oil in various grades and colors based on customer requirements. In addition to rice bran oil, byproducts such as fatty acids, gums, spent earth, and wax are marketed and sold, ensuring optimal resource utilisation.
Future plans include setting up a packaging unit to brand and sell products directly to small retailers and consumers. This initiative aims to enhance brand presence while offering third-party packaging services. Expanding the product portfolio through branded offerings is expected to strengthen market positioning and drive business growth.
How To Check the Allotment Status of Swasth Foodtech IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Swasth Foodtech IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Swasth Foodtech IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Swasth Foodtech IPO
Registered office: Baro Chowmata Belari, Guskara, Purba Burdwan, Bardhaman – 713 141, West Bengal, India
Phone: +91 890 073 8769
E-mail: cs@swasthfoodtech.com
Swasth Foodtech IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1,200 |
₹1,12,800 |
|
Retail (Max) |
1 |
1,200 |
₹1,12,800 |
|
HNI (Min) |
2 |
2,400 |
₹2,25,600 |
Swasth Foodtech IPO Promoter Holding
Dilip Chhajer, Shrey Jain, Lakshay Jain, Vandana Chhajer, Chhajer Agro Products Private Limited and Dilip Chand chhajer (HUF) are the promoters of the company.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
72.90% |
Key Performance Indicators for Swasth Foodtech IPO
As of March 31, 2024, the market capitalisation of Swasth Foodtech's IPO is ₹55.06 crore. Here are the KPIs of Swasth Foodtech:
|
KPI |
Values |
|
ROE (%) |
30.97 |
|
ROCE (%) |
13.48 |
|
Debt/Equity |
3.75 |
|
PAT Margin |
1.44 |
|
Price to Book Value |
6.43 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
4.53 |
6.25 |
|
P/E (x) |
20.77 |
15.05 |
Note: The Pre-IPO EPS is calculated using the pre-issue shareholding as of the RHP date and the latest available earnings for the fiscal year ending March 31, 2024.
The Post-IPO EPS is based on the post-issue shareholding and the annualised earnings for the fiscal year ending September 30, 2024, as provided in the RHP.
Swasth Foodtech IPO Prospectus
Swasth Foodtech IPO Registrar and Lead Managers
Swasth Foodtech IPO Lead Managers
- Horizon Management Private Limited
Registrar for Swasth Foodtech IPO
Mas Services Limited
- Contact Number: (011) 2610 4142
- Email Address: ipo@masserv.com
Swasth FoodtechIPO Registrar
Financial Performance of Swasth Foodtech India Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 13,324.98 | 9,989.64 |
| Profit After Tax (PAT) (in ₹ lakh) | 193.24 | 2.69 |
| EPS (Earnings per Share in ₹) | 5.03 | 0.09 |
| Total Borrowings (in ₹ lakh) | 2,338.86 | 2,382.18 |
| Return on equity (%) | 30.97 | 0.89 |
| Return on capital employed (%) | 13.48 | 5.11 |
| EBITDA (in ₹ lakh) | 472.19 | 189.93 |
| Current Ratio (x) | 0.95 | 0.84 |
Know before investing
Strengths
8Strategically located in West Bengal, providing easy access to ports.
Fully automated manufacturing unit ensures high production efficiency and consistency.
Refining capacity of 125 MT per day boosts operational scalability.
Quality control measures ensure consistency and meet FSSAI standards.
Strong client relationships drive repeat business and long-term growth.
Experienced management team with expertise in the edible oil industry.
Plans to expand product range with sunflower, mustard, soya, and palm oil.
Global expansion plans targeting markets in Japan, Europe, and America.
Risks
8Loss of key customers could significantly impact revenue and operations.
Dependence on geographical regions makes business vulnerable to adverse developments.
Limited operating history makes it difficult to evaluate long-term business prospects.
Lack of long-term agreements with suppliers may disrupt raw material supply.
Price fluctuations of rice bran oil affect profitability and business stability.
Limited experience in retail market expansion may hinder customer acquisition.
Dependency on a few customers for bulk sales increases business risks.
Past negative cash flow could hinder business growth and financial stability.
Swasth Foodtech India Limited Peer comparison
| Company Name | EPS (Basic) | NAV (per share) (₹) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|
| Swasth Foodtech India Limited | 5.03 | 14.62 | 30.97 | 6.71 |
| Halder Venture Limited | 36.92 | 204 | 19.66 | 1.33 |
| Sarveshwar Foods Limited | 0.17 | 2.95 | 6.64 | 4.5 |
