The New Swan Multitech IPO opened for subscription today, Thursday, January 11, and is scheduled to close on Monday, January 15. The IPO’s price band has been fixed in the range of ₹62 to ₹66 per share, according to market experts. The lot size for the New Swan Multitech IPO is set at 2,000 shares. Considering the minimum lot size requirement, retail investors are required to contribute a minimum of ₹1.32 lakh for their application, as the minimum bidding amount is two lots, equivalent to 4,000 shares, with a maximum investment limit of ₹2.64 lakh for HNIs.
The New Swan Multitech IPO has allocated up to 50% of shares in the public issue for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and a minimum of 35% is reserved for Retail Investors.
New Swan Multitech Limited excels in crafting precision-engineered parts and components, focusing its expertise on both the modern farming and automobile industries.
The company offers a wide range of automotive products, such as engine hangers, hinge body covers, fuel filler cap components, front cover stay components, main stand complete assemblies, engine guard plates, rear brake arm assemblies, separator breathers, cable guide assemblies, battery tray components, and numerous other essential parts for two-wheeler vehicles.
The company provides an extensive array of automotive products, including engine hangers, hinge body covers, fuel filler cap components, front cover stay components, main stand complete assemblies, engine guard plates, rear brake arm assemblies, separator breathers, cable guide assemblies, battery tray components, and various other essential parts for two-wheeler vehicles.
Tentatively, New Swan Multitech IPO basis of allotment of shares will be finalised on Tuesday, January 16 and the company will initiate refunds on Wednesday, January 17, while the shares will be credited to the demat account of allottees on the same day. New Swan Multitech shares are likely to be listed on BSE SME on Thursday, January 18.
As per the company’s red herring prospectus (RHP), the company’s listed peer’s are Sansera Engineering Limited (with a P/E of 36.64), Endurance Technologies Limited (with a P/E of 52.95), and JBM Auto Limited (with a P/E of 136.03).
The company’s revenue for FY23 is ₹151.16cr, and its EBITDA is 20.22cr. PAT was 9.91cr, and ROCE was 24.86%. In FY23, automotive components accounted for 60% of revenue, while agricultural implements contributed 37%.
New Swan Multitech IPO details
The New Swan Multitech IPO, valued at ₹33.11 crore, consists entirely of a fresh issue of 5,016,000 equity shares. Notably, there is no offer for sale (OFS) component, as outlined in the RHP (Red Herring Prospectus).
The allocated net proceeds from the IPO are earmarked for several purposes: funding capital expenditures for acquiring specific machinery at the company’s current manufacturing unit in Raian, Ludhiana; repaying a portion of existing borrowings; addressing working capital needs, and supporting general corporate objectives.
New Swan Multitech Limited’s promoters are Kanwardeep Singh, Upkar Singh, and Barunpreet Singh Ahuja.
For IPO-related matters, Bigshare Services Pvt Ltd serves as the registrar, while Hem Securities Limited and Share India Capital Services Private Limited are the book running lead managers.
New Swan Multitech IPO subscription status
On the first day, the New Swan Multitech IPO has garnered significant interest with a subscription status of 9.77 times. Retail investors have shown a strong response, subscribing 6.54 times their allotted portion. Non-institutional buyers have subscribed 2.61 times, while the Qualified Institutions Buyers (QIBs) portion is booked 1.07 times. This reflects a positive reception from various investor segments, as reported on chittorgarh.com.
As of 11:35 IST, the New Swan Multitech IPO has witnessed bids for 1,37,80,000 shares against the total 14,10,000 shares on offer. This robust demand signifies a substantial oversubscription, as reported on chittorgarh.com.
New Swan Multitech IPO GMP today
As of today, the Grey Market Premium (GMP) for New Swan Multitech IPO stands at +37, consistent with the previous three sessions. This suggests that shares of New Swan Multitech are trading at a premium of ₹37 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price for New Swan Multitech shares is indicated at ₹103 each. This reflects a 56.06% increase over the IPO price of ₹66. The ‘Grey market premium’ signifies investors’ willingness to pay more than the issue price.
New Swan Multitech IPO review
In the New Swan Multitech IPO review, Dilip Davda, contributing editor at Chittorgarh, notes the company’s engagement in diverse sectors such as automotive and agriculture. Highlighting creamy customers and boosted margins from FY23 onwards, he expresses concern about the sustainability of these margins in the future. Despite this, Davda suggests that the issue seems reasonably priced based on its annualized super earnings for FY24. He advises investors to consider parking funds for potential medium to long-term rewards.
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