New Delhi, Feb 28 (KNN) Swasth Foodtech share price opened flat on the BSE SME today, trading at the exact IPO price of Rs 94 per share. The company’s initial public offering ran from February 20 to February 24.
The IPO saw moderate demand, achieving an overall subscription of 7.83 times by the final day of bidding. Investors were required to bid for a minimum of 1,200 shares or in multiples thereof.
Swasth Foodtech India Limited specialises in processing rice bran oil for distribution to oil manufacturers and packers.
The company produces various grades of rice bran oil rich in Vitamin E and Oryzanol, components known for their cardiovascular benefits, high smoke point, and neutral flavor profile that makes them suitable for cooking applications.
The company also markets several byproducts from their processing operations, including fatty acids, gums, spent earth, and wax. Their manufacturing facility features a dedicated refining unit for bulk rice bran oil production.
Moving forward, Swasth Foodtech plans to establish a packaging unit that will serve both their proprietary brands and third-party brands, with a particular focus on reaching small retailers.
According to the company’s Prospectus, Swasth Foodtech’s listed industry peers include Halder Ventres Ltd with a price-to-earnings ratio of 11.70 and Sarveshwar Foods with a P/E ratio of 37.20.
The IPO, valued at Rs 14.92 crore, consists entirely of a fresh issuance of 15,87,600 equity shares with no offer-for-sale component.
Proceeds from the offering will fund several strategic initiatives, including establishing a packing line at their existing manufacturing facility, supporting working capital requirements, and addressing general corporate purposes.
Horizon Management Private Limited is serving as the book-running lead manager for the IPO, while Mas Services Limited has been appointed as the registrar. Giriraj Stock Broking Private Limited is functioning as the market maker for the offering.
(KNN Bureau)
