New Delhi, 28 February (HS): Shares of Swasth Foodtech India Limited, a rice bran oil processing company, disappointed its IPO investors today. Under the IPO, the company's shares were issued at a price of Rs 94. Today, its entry on BSE's SME platform was done at a price of Rs 94 without any fluctuation. Immediately after listing, this stock became a victim of selling, due to which it broke down to the lower circuit level of Rs 89.30 in a short time. In this way, the company's IPO investors suffered a loss of five percent on the first day itself.

Swasth Foodtech India Limited's Rs 14.92 crore IPO was open for subscription between 20 and 24 February. This IPO received a good response from the investors, due to which it was subscribed 7.83 times overall. In these, the reserve portion for retail investors was subscribed 13.12 times. Under this IPO, 15,87,600 new shares with a face value of Rs 10 have been issued. The company will use the money raised through the IPO to set up a packing line in its existing manufacturing unit, to meet working capital requirements and for general corporate purposes. Talking about the financial position of the company, as per the claim made in the prospectus, its financial health has continuously strengthened.

In the financial year 2021-22, the company had a net profit of Rs 1 lakh, which increased to Rs 3 lakh in the next financial year 2022-23 and to Rs 1.93 crore in 2023-24. During this period, the company's revenue grew at a compounded rate of more than 945 percent annually to reach Rs 134.32 crore. The company has made a net profit of Rs 1.83 crore during the first half of the current financial year i.e. between April to September 2024. In this way, the company has achieved a revenue of Rs 88.63 crore during this period.

Hindusthan Samachar / Jun Sarkar