Sawaliya Foods Products IPO Opens at ₹114-₹120 Price Band; Retail Entry Starts at ₹2.88 Lakh

Mumbai, 7 August 2025: The Initial Public Offering (IPO) of Sawaliya Foods Products Ltd. has opened for subscription today on the NSE SME platform, aiming to raise ₹34.83 crore through a combination of fresh issue and offer for sale. With a price range of ₹114 to ₹120 per share and a minimum application size of 2,400 shares, the IPO requires individual applicants to invest ₹2,88,000. This offering has a structure that may appeal to different types of investors based on their preferences and strategies.

IPO Subscription Window Open from 7 to 11 August; Listing Tentatively Scheduled for 14 August

Bidding for Sawaliya Foods Products IPO will begin from August 7, 2025, to August 11, 2025. The IPO comprise

• A fresh issue of 26.03 lakh equity shares totalling ₹31.23 crore
• An offer of sale (OFS) of 3 lakh shares for ₹3.60 crore.

The listing is scheduled on the NSE SME exchange for 14 August 2025, with the basis of allotment expected to be finalised by 12 August, followed by refunds and share credit by 13 August 2025.

Lot Size and Application Amount: Minimum Investment Set at ₹2.88 Lakh for Retail Bidders

Investors can apply in multiples of 1,200 shares, with the minimum bid set at 2 lots, or 2,400 shares. This means an application amount of ₹2,88,000. The allocation is structured as follows:

• Retail Individual Investors (RII): 9,64,800 shares (49.81%). These are investors who individuals who invest with a smaller ticket size, applying for IPOs under the retail category.
• Non-Institutional Investors (NII): 2,74,800 shares (14.19%). This category includes High Net-Worth Individuals (HNIs) and others who apply for more than the maximum limit allowed for retail investors. Their investments usually exceed ₹2 lakh and may include affluent individuals or small corporate entities.
• Qualified Institutional Buyers (QIB): 5,50,800 shares. QIBs consist of entities like mutual funds, foreign portfolio investors (FPIs), banks, and insurance companies. They typically provide stability and a long-term commitment to an IPO.
• Market Maker: 1,46,400 shares. Market makers are registered trading members who provide liquidity by actively buying and selling shares after listing.

The IPO follows the bookbuilding process and is being led by Unistone Capital Pvt Ltd as the book-running lead manager, with Skyline Financial Services Pvt Ltd acting as the registrar. Alacrity Securities Ltd. is the designated market maker for the issue.

Financial Performance for FY25 and What it Means for the Investors

For FY25, Sawaliya Foods Products Ltd. reported a profit after tax (PAT) of ₹6.95 crore. This is up from ₹3.12 crore in FY24, a 123% increase. At the same time, revenue grew from ₹23.67 crore to ₹34.34 crore. This is a 45% rise compared to the last year.

Operating margins also improved, with EBITDA increasing to ₹12.22 crore in FY25 from ₹6.12 crore in FY24. 

The company’s net worth more than doubled, reaching ₹12.65 crore, and total assets stood at ₹46.26 crore, up from ₹25.40 crore the previous year.

Borrowings increased to ₹22.49 crore, compared to ₹12.93 crore in FY24, reflecting capital-intensive expansion in its manufacturing and export operations.

Key Financial Metrics Show High ROE and ROCE as of FY25

As of 31 March 2025, Sawaliya Foods Products Ltd Return on Equity (ROE) was 75.70%, which shows strong profitability about shareholder funds. A Return on Capital Employed (ROCE) of 48.96% shows how well the company uses its equity and debt to generate returns.

A PAT margin of 20.32% means the company keeps over ₹0.20 as profit from every ₹1 in revenue. The EBITDA margin of 35.74% highlights good operational efficiency.

The debt-to-equity ratio of 1.78 shows moderate leverage. This means the company is using debt to support its growth. The price-to-book ratio of 6.94 indicates that the stock’s value is nearly seven times its book value. This suggests market confidence or high pricing.

After the issue, th͏e͏ Earning͏s Per S͏h͏are (EPS) is ₹7.00, w͏ith a Price-t͏o-Earn͏i͏ngs͏ (P/E) ratio ͏of 17.14x. This is up from a pr͏e-issue EPS of ₹9.49 and a P/E ͏of͏ 12.64x. This shift reflects equity dilution from the IPO and gives investors a way to evaluate the company’s value compared to its earnings.

Objects of the Issue: Machinery Upgrades, Solar Setup, Working Capital, and Loan Repayment

Sawaliya Foods aims to utilise the net proceeds from the IPO in the following areas:

• ₹7.49 crore for purchase and upgradation of machinery and installation of a rooftop solar PV system (149.04KWp)
• ₹10 crore for working capital requirements
• ₹4.61 crore for repayment or prepayment of certain borrowings
• Remaining proceeds to be used for general corporate purposes

About Sawaliya Foods Products Ltd. – A Madhya Pradesh-Based B2B Dehydrated Food Manufacturer

Sawaliya Foods Products Ltd. started in July 2014 and is based in Dhar, Madhya Pradesh. The company makes and exports dehydrated vegetables, mainly serving the packaged food and FMCG industries. It works on a business-to-business model. It offers products like dehydrated carrots, cabbage, and string beans to local and international markets, including the United States.

IPO Structure and Timeline Recap

• IPO Size: ₹34.83 crore (Fresh issue: ₹31.23 crore + OFS: ₹3.60 crore)
• Price Band: ₹114-₹120 per share
• Lot Size: 1,200 shares
• Retail Min Investment: ₹2,88,000 (2,400 shares)
• Bidding Period: 7 August – 11 August 2025
• Tentative Listing Date: 14 August 2025 (NSE SME)
• Registrar: Skyline Financial Services Pvt Ltd
• Market Maker: Alacrity Securities Ltd

The IPO timeline and investment structure are aligned with SME IPO norms and are designed to cater to investors familiar with this segment.

REF:https://nsearchives.nseindia.com/content/ipo/ANCHOR_SAWALIYA.zip

https://nsearchives.nseindia.com/content/ipo/RHP_SAWALIYA.zip

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