Swasth Foodtech India is launching its IPO on February 20, 2025, closing on February 24, 2025. The IPO is a fixed-price issue with the price set at ₹94 per share. The issue size is approximately ₹14.92 crores, consisting of a fresh issue of 15,87,600 shares. Swasth Foodtech processes rice bran oil from crude oil for sale to manufacturers and packers. The company’s shares will be listed on the BSE SME platform, with the allotment finalized on February 24 and listing on February 27.
₹5
₹94
₹94.00
Expert Opinions
Expert opinion on the Swasth Foodtech IPO reveals several considerations for potential investors. Market sentiment may be influenced by the overall performance of the food processing sector and investor appetite for SME IPOs. Company strengths include its specialization in processing rice bran oil from crude oil, catering to oil manufacturers and packers, with a production capacity of 125 MT per day as of July 2024. Key risks and challenges involve customer concentration and geographical dependence, making the company vulnerable to regional market fluctuations.
Valuation analysis for FY24 indicates a Return on Equity (ROE) of 30.97%, ROCE of 13.48%, and RoNW of 30.97%. From a long-term investment perspective, Swasth Foodtech’s growth hinges on its ability to expand its customer base and manage raw material supply effectively. Investors should conduct thorough due diligence, focusing on the company’s financial performance and strategic growth plans.
Investor Considerations
For investors considering the Swasth Foodtech India IPO, opening February 20, 2025, a detailed review is essential. Company performance and fundamentals reveal a revenue increase to ₹133.25 crores in 2024 from ₹99.90 crores in 2023, with a profit of ₹1.93 crores in 2024 compared to ₹0.03 crores in 2023. The sector outlook highlights rice bran oil’s health benefits and versatility. Analyzing the IPO valuation shows a fixed price of ₹94 per share. In FY 2024, it reported a Price to Book Value of 6.43, a low PAT Margin of 1.44%, and a high Debt/Equity ratio of 3.75, reflecting significant leverage.
While growth prospects exist due to increasing health-conscious consumer trends and expanding market reach, risks include high debt levels, thin profit margins, and competition from established players. Key risk factors include customer concentration and geographical dependence. From an investment horizon perspective, the company’s long-term success depends on improving profitability, reducing debt, and strengthening its market position. Investors should assess these factors, reviewing the company’s objectives, which include processing rice bran oil for manufacturers and packers.
| Date | GMP | Trend |
|---|---|---|
| 23 Feb 2025 13.13 | ₹5 | --- |
| 22 Feb 2025 11.45 | ₹5 | Up |
| 21 Feb 2025 18.29 | ₹00 | Down |
| 20 Feb 2025 19.15 | ₹20 | Up |
| 19 Feb 2025 10.51 | ₹00 | --- |
| 18 Feb 2025 11.11 | ₹00 | --- |
| 17 Feb 2025 12.58 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Swasth Foodtech’s listing performance. While the GMP of ₹5 predicted a positive premium of 5.32% over the issue price, the stock actually listed flat with no gains or losses. With a prediction error of 5.05%, the GMP failed to predict the flat listing, demonstrating its unreliability as a price predictor in this case.
Swasth Foodtech IPO Current GMP is ₹5.
Swasth Foodtech IPO Expected Returns is 5.32%.
Swasth Foodtech IPO estimated listing price is ₹99.