The SME initial public offering (IPO) of Swasth Foodtech India, which commenced on February 20, reached full subscription on Friday with an overall subscription rate of 3.92 times by 5:00 PM on the second day of bidding. The company is seeking to raise Rs 14.92 crore through a new issuance of 15.88 lakh shares, and the offer will close on February 24.
The retail segment of the offering was subscribed 6.77 times, while the non-institutional investors category saw a subscription of 1.08 times. As of yet, no bids have been submitted by qualified institutional buyers.
Ahead of its listing, Swasth Foodtech India’s shares were trading at a gray market premium (GMP) of Rs 3 on Friday, suggesting a 3.2% premium over the highest end of the IPO price band of Rs 94.
The IPO price band for Swasth Foodtech India is set at Rs 94 per share, with investors receiving 1,200 shares per allotted lot.
The company plans to finalize the IPO share allotment on February 25, with the listing scheduled for February 28.
Swasth Foodtech is involved in the processing of edible rice bran oil from crude oil, serving primarily edible oil manufacturers and packers. They produce various grades and colors of rice bran oil, tailored to meet specific customer requirements. Rice bran oil is marketed as a healthier alternative due to its near 1:1 balance of polyunsaturated and monounsaturated fats. Derived from the germ and inner husk of rice kernels, it is rich in Vitamin E and Oryzanol, promoting its popularity for its health benefits, such as supporting heart health and suitability for high-heat cooking methods because of its high smoke point. Additionally, its neutral flavor increases its versatility in culinary uses.
Swasth Foodtech’s business strategy focuses on marketing and selling both the finished product, edible rice bran oil, and the residues and byproducts generated during the processing.
Edible oils and fats are crucial to a balanced diet and represent essential components of mass consumption. The Department of Food and Public Distribution handles various aspects of the vegetable oil processing industry, which encompasses price control, interstate trade and commerce, and the supply and distribution of vanaspati, oilseeds, vegetable oils, oil cakes, and fats.
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