Swasth Foodtech IPO Day 1: Check subscription status, GMP and other details

Swasth Foodtech IPO: The initial public offering (IPO) of Swasth Foodtech opened for subscription today, February 20 and will closed on February 24. The company, which aims to raise ₹14.92 crore through the SME IPO, has set a price of ₹94 per share.

Swasth Foodtech IPO Subscription

Swasth Foodtech IPO witnessed strong demand by 4:15 pm on its first day of subscription, garnering 2.13 times bids. The IPO received bids for 32.04 lakh shares against 15.07 lakh shares on offer. The retail investor segment was booked 3.64 times, while the non-institutional investors (NII) category was subscribed 0.61 times.

Swasth Foodtech GMP today

The company’s shares in the grey market traded at a premium of ₹20. This indicates an estimated listing price of ₹114, up 21.28 percent from the IPO price of ₹94. This decline from ₹24 in the previous session

One must note that grey market premium is only an indicator of how the company’s shares are performing in the unlisted market and can change quickly.

About the IPO

Swasth Foodtech IPO was entirely a fresh issue of 15.88 lakh shares with no offer for sale component. Retail investors could apply with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹1.12 lakh.

The company intends to allocate the net proceeds from the issue toward key objectives, including establishing a packing line at its existing manufacturing facility, meeting its working capital requirements, and addressing general corporate purposes.

The allotment for the Swasth Foodtech IPO is expected to be finalized on Tuesday, February 25, 2025. Meanwhile, Swasth Foodtech IPO will be list on BSE SME with a tentative listing date fixed as Friday, February 28, 2025.

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

“SFL is engaged in the business of processing rice bran oils and related by-products for marketing. It is operating on a B2B model with bulk supply. The company is operating in a highly competitive and fragmented segment that is high-volume low margin business. Based on recent financial performance, the issue appears aggressively priced. Well-informed investors may park moderate funds for medium to long term,” said Dilip Davda of Chittorgarh.com, recommending a ‘may apply’ rating to the issue.

About the Company

Incorporated in 2021, Swasth Foodtech India Limited specializes in processing rice bran oil, catering to oil manufacturers and packers. The company produces various grades of rice bran oil, known for its heart-healthy benefits due to its richness in Vitamin E and Oryzanol. With a high smoke point and neutral flavor, the oil is well-suited for diverse cooking applications.

In addition to rice bran oil, the company also sells byproducts such as fatty acids, gums, spent earth, and wax in the open market. Its operations are supported by a refining unit dedicated to bulk rice bran oil production. Looking ahead, the company plans to utilize its proceeds to establish a packaging unit, allowing it to cater to both its own and third-party brands while expanding its reach to small retailers.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.