Swastika Infra Gets SEBI Nod for IPO, Cuts Fresh Issue Size

Swastika Infra, the EPC firm specialising in power distribution infrastructure, has received market regulator SEBI’s clearance to hit the capital markets with its initial public offering(IPO). The IPO will comprise both a fresh share issue and an offer-for-sale, with the fresh component reduced following a successful pre-IPO fundraise.

Reduced Fresh Issue After Pre-IPO Placement

The company filed its draft IPO papers on 30 March this year and obtained SEBI’s observation letter this week, enabling it to launch the issue within the next 12 months. The IPO will feature a fresh equity issue worth ₹160 crore, lowered from an earlier ₹200 crore plan due to the ₹40 crore raised in its pre-IPO round. 

That round, completed on 28 July, saw 24.24 lakh shares allotted at ₹165 per share to investors including Ashvi Ventures, Resonance Opportunities Fund, Equity4life, and Rajputana Biodiesel. The offer-for-sale portion will involve 19.2 lakh shares offloaded by existing shareholders, including promoters.

Business, Fund Use and Market Context

Swastika Infra executes projects such as underground cabling, substation construction, rural and urban electrification, and street lighting installation, competing in the listed space only with Rajesh Power Services. Of the fresh issue proceeds, ₹145 crore is earmarked for working capital requirements, with the balance assigned to general corporate purposes. Srujan Alpha Capital Advisors and PhillipCapital (India) are the book-running lead managers for the IPO.

Also Read: Upcoming IPO: Powerica Ltd Files DRHP with SEBI to Raise ₹1,400 Crore!

Conclusion

With SEBI’s approval in place and a leaner fresh issue size post pre-IPO fundraising, Swastika Infra is positioned to proceed with its public float in the coming months, eyeing capital infusion to scale its operations and push growth within India’s evolving power distribution infrastructure segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.