Swastika Castal IPO receives 1.5 times subscription applications by end of Day 1

Vadodara, July 22, 2025 – The ₹14.07 crore SME Initial Public Offering (IPO) of Swastika Castal Limited opened for subscription on Monday, July 21. As of the Day 1 close, the retail individual investor (RII) category was subscribed to more than 2.2 times, while the overall subscription stood at approximately 1.5 times.

The IPO will remain open for bidding until Wednesday, July 23, with allotment and listing expected by July 28 on the BSE SME platform.

What Does Swastika Castal Do?

Founded in 1996 and based in Karjan, Vadodara, Swastika Castal manufactures aluminium castings using sand casting, gravity die casting, and centrifugal casting techniques. Its products cater to various sectors, including electrical equipment, railways, engineering, and international clients.

The company highlights its advanced in-house facilities, focus on sustainability, and experienced leadership as key strengths.

IPO Details

The IPO is a fixed price issue priced at ₹65 per share, comprising entirely of a fresh issue of 21.64 lakh equity shares.

• Price per share: ₹65 (Face value ₹10 + premium ₹55)
• Lot size: 2,000 shares (minimum investment: ₹1.30 lakh)
• Issue size: ₹14.07 crore
• Dates: Opens July 21, closes July 23

• Listing: July 28, on BSE SME
  Retail investors can bid for one lot or in multiples of 2,000 shares. It’s common for SME IPOs to typically have a higher minimum application amount than mainboard IPOs.

How Will the Funds Be Used?

The company plans to utilise the proceeds for:

• Setting up plant & machinery and shed construction: ₹5 crore
• Working capital needs: ₹5.5 crore
• General corporate purposes: ₹1.5 crore

How Has the Subscription Shaped Up?

On the second day of bidding, the retail portion was subscribed 3.44 times, indicating strong demand from small investors. The non-institutional investor (NII) segment was subscribed to approximately 0.97 times, while qualified institutional buyers (QIBs) had yet to participate (QIBs are generally more active on the last date of the IPO).

This level of early retail interest suggests confidence in the company’s prospects, although SME IPOs can be volatile and illiquid after listing.

Key Dates to Watch

• Issue closes: July 23
• Basis of allotment: July 24
• Refunds & demat credit: July 25
• Listing on BSE SME: July 28

Consideration for Retail Investors

The Swastika Castal SME IPO requires a relatively high minimum investment of ₹1.30 lakh, making it important for investors to assess their risk appetite. SME stocks typically exhibit lower liquidity and higher volatility. However, the company boasts strengths such as an established client base and advanced manufacturing processes; risks remain, including customer concentration and dependence on a single plant.

The IPO is being managed by Horizon Management Private Limited, with Accurate Securities & Registry Pvt. Ltd. as the Registrar.

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