Swasth Foodtech India Ltd IPO – How to Apply and What You Need to Know

Swasth Foodtech India Ltd IPO
Swasth Foodtech India Ltd IPO

Swasth Foodtech India Ltd is launching its Swasth Foodtech India Ltd IPO on February 19, 2025, with the subscription period closing on February 21, 2025. The company specializes in processing edible rice bran oil from crude oil, supplying various grades to oil manufacturers and packers. Their manufacturing facility is located in Purba Burdwan, West Bengal, with a production capacity of 125 metric tons per day as of July 2024.

Swasth Foodtech India Ltd IPO Details:

  • IPO Opening Date: February 19, 2025
  • IPO Closing Date: February 21, 2025
  • Allotment Date: February 24, 2025
  • Refund Initiation: February 25, 2025
  • Demat Credit Date: February 26, 2025
  • Listing Date: February 27, 2025
  • Issue Size: The IPO comprises a fresh issue of 1,587,600 equity shares, aggregating up to ₹14.92 crores.
  • Issue Price: Each share is priced at ₹94.
  • Lot Size: Investors can bid in lots of 1,200 shares, requiring a minimum investment of ₹1,12,800.
  • Listing: The shares are proposed to be listed on the BSE SME platform, with the expected listing date on February 27, 2025.
  • Registrar: MAS Services Ltd is the registrar for this IPO.

Company Promoters:

The IPO is promoted by:

  • Dilip Chhajer
  • Shrey Jain
  • Lakshay Jain
  • Vandana Chhajer
  • Chhajer Agro Products Private Limited
  • Dilip Chand Chhajer (HUF)

Objectives of the IPO:

  • Setting up a packing line at the existing manufacturing unit.
  • Funding working capital requirements.
  • General corporate purposes.

About Swasth Foodtech India Ltd

Swasth Foodtech India Ltd, established on February 2, 2021, is a company specializing in the manufacturing of food products, with a focus on processing edible rice bran oil from crude oil. The company’s manufacturing facility is located in Purba Burdwan, West Bengal. As of July 2024, the facility has a production capacity of 125 metric tons per day.

Company Details:

  • Corporate Identification Number (CIN): U15490WB2021PLC242881
  • Authorized Share Capital: ₹5,00,00,000
  • Paid-up Capital: ₹4,26,96,820
  • Registered Address: Baro Chowmata Belari, Guskara, Purba Burdwan, West Bengal, India, 713141

The company is promoted by Dilip Chhajer, Vandana Chhajer, Shrey Jain, and Lakshay Jain.

Swasth Foodtech India Ltd is currently active and unlisted. The company has announced an Initial Public Offering (IPO) scheduled from February 19 to February 21, 2025, aiming to raise funds for setting up a packing line at its existing manufacturing unit, meeting working capital requirements, and general corporate purposes.

Swasth Foodtech IPO Lot Size

Here is the lot size details for Swasth Foodtech India Ltd IPO in a table format:

ApplicationLotsSharesInvestment Amount (₹)
Retail (Minimum)11,200 Shares₹1,12,800
Retail (Maximum)11,200 Shares₹1,12,800
HNI (Minimum)22,400 Shares₹2,25,600
  • Retail investors can apply for one lot (1,200 shares).
  • High Net-worth Individuals (HNI) need to apply for a minimum of two lots (2,400 shares).
  • The issue price per share is ₹94.

Swasth Foodtech India Ltd Growth

As of February 18, 2025, Swasth Foodtech India Ltd., established in 2021, has demonstrated notable growth in its financial and operational metrics. Below is a summary of the company’s key financial data:

Financial MetricDetails
Authorized Share Capital₹5.00 crore
Paid-up Capital₹4.27 crore
Annual TurnoverExceeded ₹100 crore
Production Capacity125 metric tons per day (as of July 2024)
Outstanding Bank Charges₹22.00 crore with Axis Bank Limited

The company’s significant milestones include surpassing an annual turnover of ₹100 crore and achieving a production capacity of 125 metric tons per day by mid-2024. These accomplishments underscore Swasth Foodtech’s rapid expansion and operational efficiency within a relatively short period since its inception. The company has also secured financial backing, evident from the ₹22.00 crore charge registered with Axis Bank Limited.

Key Performance Indicator

KPIValue
Return on Equity (ROE)30.97%
Return on Capital Employed (ROCE)13.48%
Debt to Equity Ratio3.75
Return on Net Worth (RoNW)30.97%
PAT Margin1.44
Price to Book Value (P/BV)6.43

These KPIs are key metrics in evaluating a company’s financial health, profitability, and growth potential. Would you like to dive deeper into any of these KPIs or use real data for a specific company?

Swasth Foodtech India Ltd IPO
Swasth Foodtech India Ltd IPO

Strengths of Swasth Foodtech India Ltd IPO

1) Strong Growth in a Growing Industry:

  • The edible oil industry in India is growing due to increased demand for processed and healthy oils. Swasth Foodtech specializes in processing rice bran oil, which is gaining popularity as a healthier alternative to other cooking oils.

2) Strategic Use of IPO Proceeds:

  • The IPO proceeds are intended to be used for setting up a packing line and funding working capital needs. This strategic investment could enhance production efficiency and expand the company’s market reach.

3) Diversified Product Offering:

  • Swasth Foodtech provides edible rice bran oil to various manufacturers, ensuring a wide customer base. The company is also involved in growing its production capacity, which shows potential for future scalability.

4) Experienced Promoters:

  • The promoters have extensive experience in the agro-processing industry, and their knowledge could play a key role in driving the company’s growth.

5) Favorable Market Trends:

  • With the increasing focus on healthy eating and the shift towards healthier oils, Swasth Foodtech is in an advantageous position to capture market share.

6) Smaller Market Capitalization (SME Platform):

  • As a listing on the BSE SME platform, it may attract niche investors looking to invest in small-cap companies that have high growth potential.

Risks of Swasth Foodtech India Ltd IPO

1) Competition in the Edible Oil Industry:

  • The edible oil industry is highly competitive, with well-established players already dominating the market. Swasth Foodtech may face challenges in differentiating its product offerings and gaining market share.

2) Dependence on Rice Bran Oil Market:

  • Swasth Foodtech’s focus on rice bran oil could expose it to risks associated with fluctuations in the raw material (rice bran) prices. Any disruption in the supply of rice bran could impact production.

3) Limited Track Record:

  • Swasth Foodtech was established only recently in 2021, and while it shows growth potential, it has a limited operating history, making it harder to predict its long-term sustainability.

4) Debt Levels:

  • The company has some outstanding debt, which could pose financial risks if it doesn’t effectively manage its liabilities, especially considering interest rates and any economic downturns.

5) Dependence on IPO Proceeds:

  • The company’s growth plans rely significantly on the funds raised through the IPO. If the IPO fails to raise sufficient capital or if the funds are not utilized efficiently, it could delay expansion plans or put pressure on existing financial resources.

6) Regulatory and Compliance Risks:

  • As a food processing company, Swasth Foodtech is subject to various regulatory approvals, compliance requirements, and quality standards. Any changes in regulations could impact operations.

7) Market Volatility:

  • The stock market can be volatile, especially for smaller companies listed on the SME platform. Investors should be prepared for possible price fluctuations post-listing.

Conclusion

Investing in the Swasth Foodtech India Ltd IPO offers an opportunity to invest in a growing company within the edible oil industry, but it comes with risks related to competition, raw material sourcing, limited operational history, and the inherent volatility of small-cap stocks. As always, potential investors should carefully consider these strengths and risks and possibly consult a financial advisor before proceeding with the investment.

HP Telecom India IPO: Everything You Need to Know

Tejas Cargo India Ltd IPO 2025: All You Need to Know About Dates, Lot Size, and Financials

Beezaasan Explotech IPO: Complete Guide to Apply and Invest

Disclaimer: The content on this website is intended for informational purposes only and should not be interpreted as financial or investment advice. Engaging in stock market activities involves inherent risks, and outcomes can be unpredictable. While we strive to provide accurate and up-to-date information, we do not make any guarantees regarding the completeness or reliability of the content. Any investment decisions you make should be based on your own research and consultation with a qualified financial professional. We are not responsible for any financial gains or losses resulting from actions taken based on the information provided here. Always invest wisely and at your own risk.