Swastika Castal Limited Opens ₹14.07 Crore SME IPO on July 21, 2025, to Boost Manufacturing Capacity and Global Reach

Mumbai, 18 July 2025: Swastika Castal Ltd., a seasoned manufacturer in the aluminium casting industry, is gearing up to launch its Initial Public Offering (IPO) worth ₹14.07 crore. The fixed-price issue will open for subscription on 21 July 2025 and close on 23 July 2025. The IPO comprises a fresh issue of 21.64 lakh equity shares, and the stock is proposed to be listed on the BSE SME platform with a tentative listing date of 28 July 2025.

Investment Structure Highlights Retail and HNI Criteria Clearly

• The IPO is priced at ₹65 per share, with a face value of ₹10.
• For retail investors, the minimum application size is two lots, equivalent to 4,000 shares, requiring an investment of ₹2.6 lakh.
• High Net-worth Individuals (HNIs) have a minimum investment threshold of three lots or 6,000 shares, amounting to ₹3.9 lakh.
• For larger investors (bNII), the minimum begins at eight lots, which is 16,000 shares, or ₹10.4 lakh.

Applications must be submitted before 5 PM on 23 July 2025 for UPI mandate confirmation. Allotments are expected to be finalised on 24 July, followed by refunds and demat credit on 25 July.

Balanced Share Allocation Indicates Inclusive Strategy

Swastika Castal has structured its IPO to encourage participation from various investor categories. Out of the total 21.64 lakh shares:

• 10.28 lakh shares (47.50%) are reserved for Retail Individual Investors (RIIs)
• 10.26 lakh shares (47.41%) are earmarked for Non-Institutional Investors (NIIs)
• 1.10 lakh shares (5.08%) are assigned to the market maker, Horizon Financial Consultants Pvt. Ltd.

This strategic distribution aims to balance retail enthusiasm with institutional depth, while also maintaining liquidity through market-making arrangements.

Promoter Shareholding Shows Intent to Expand Investor Base

The IPO will lead to a dilution in promoter holding from 100% pre-issue to 73.49% post-issue, signalling the promoters’ intent to broaden the shareholder base while retaining control. The promoters of Swastika Castal Ltd. are Varun Sharda and Indra Sharda, who have steered the company through nearly three decades of operations.

Business Overview: Engineering Strength in Aluminium Castings

Founded in 1996, Swastika Castal Ltd. has established itself in the specialised segment of aluminium castings. The company operates using sand, gravity, and centrifugal casting processes and is known for its ability to handle complex castings, up to 250 kg for sand casting and 80 kg for gravity casting.

Swastika Castal’s manufacturing capabilities cater to a wide range of sectors, including:

• Electrical and Transmission Equipment: Providing critical cast components.
• Railways and Diesel Engines: Supplying robust and reliable mechanical parts.
• Industrial Applications: Manufacturing parts used in air compressors, insulators, and other industrial equipment.

The company also boasts an in-house heat treatment facility, which helps ensure dimensional precision, mechanical strength, and production cost control.

Financial Performance Reflects Strong Upswing in FY25

Swastika Castal Ltd. reported a solid year-on-year performance for the financial year ending 31 March 2025, with notable increases in both revenue and profit. The company’s revenue rose by 30%, reaching ₹30.31 crore, while Profit After Tax (PAT) surged by 305% to ₹2.63 crore. EBITDA for the year stood at ₹4.55 crore, and net worth climbed to ₹10.67 crore. Borrowings remained consistent at ₹9.12 crore.

Such financial improvements highlight operational efficiency and suggest stronger margins across the board, especially given the steady capital structure.

Key Market Indicators Underline Financial Health

Swastika Castal’s valuation puts its market capitalisation at ₹53.07 crore as of 31 March 2025. Key financial ratios offer further insight into the company’s operational soundness:

• Return on Equity (ROE): 28.17%
• Return on Capital Employed (ROCE): 32.74%
• PAT Margin: 8.88%
• EBITDA Margin: 15.36%
• Debt-to-Equity Ratio: 0.85
• Price-to-Book Value: 3.66

Additionally, the company’s Earnings Per Share (EPS) stands at ₹4.39 pre-IPO and ₹3.23 post-IPO, with a Price-to-Earnings (P/E) ratio of 14.8 before the issue and 20.14 after.

Capital Deployment Plans Focus on Infrastructure and Operations

Swastika Castal intends to deploy the IPO proceeds in two key areas.

• ₹5 crore is allocated towards capital expenditure, including the purchase of new plant and machinery and the construction of additional buildings and sheds to enhance manufacturing capabilities.
• Another ₹5 crore will be used for working capital requirements, supporting procurement, day-to-day operations, and improving liquidity.

This planned investment in both infrastructure and operations indicates the company’s focus on capacity expansion and business sustainability.

The upcoming Swastika Castal IPO represents a calculated move by a longstanding industry player to leverage public capital for its next phase of growth. With a clear pricing strategy, diversified investor allocation, improved financials, and defined use of proceeds, the IPO marks a pivotal moment in the company’s expansion roadmap.

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