New Swan Multitech Limited, a New Delhi-based manufacturer of farm machineries has announced its initial public offering (IPO). The public issue will open for subscription on January 11, 2024 with plans to list on the SME segment of BSE on January 18, 2024. The book-built issue comprises entirely of a fresh issuance of 50.16 lakh equity shares aggregating up to ₹33.11 crore. The shares have a face value of ₹10 each in the price range ₹62 to ₹66.
About Company
New Swan Multitech Limited is incorporated on March 03, 2014 as a part of the New Swan group. The company is one of the leading manufacturers of high-quality components for the automotive industry and farming machinery parts with brand name SWAN AGRO.
Automotive industry portfolio
- Swan Multitech has wide range of product portfolio under the automotive industry which includes fuel filler cap components, front cover stays components, battery tray components, cable guide assemblies, engine guard plates, hinge body covers, assembly engine hangers, main stand complete assemblies, separator breathers, rear brake arm assemblies and many other two-wheeler vehicles parts.
- Additionally they engineers and manufacture cooling recovery reservoir brackets, fuse block brackets, floor panel brackets, passenger car air cleaner inlet hose brackets, exhaust tailpipe brackets, and various other brackets. The facility which produces Auto parts is in Vithlapur village, Ahmedabad, Gujarat.
- The company’s client portfolio has reputed companies of automotive industry such as Honda Motorcycle, MG Motors and Mahindra & Mahindra and Scooter India.
Farming industry portfolio
- For agricultural needs, New Swan Multitech Limited manufactures disc ploughs, puddlers, laser land levelers, potato planters, potato diggers, rotovators, fertilizer spreaders, mulchers, seeders, super seeders, weeders, and many other farming equipments. The farming equipment manufacturing unit is operating in Raian, Ludhiana, Punjab.
- Agricultural implements are distributed to 200 dealers in 11 states including Madhya Pradesh, Bihar, Jharkhand, Punjab, Rajasthan, Jammu & Kashmir, Karnataka, Tamil Nadu, Haryana, Uttar Pradesh, and Maharashtra.
- The operating revenue of New Swan Multitech Limited recorded ₹15,116.04 lakhs in Fiscal Year 2023. A total of 300 SKUs of agricultural equipment and automotive parts are included in the company’s product portfolio as of September 30, 2023.
Read more details on New Swan’s website.
Upkar Singh, Barunpreet Singh Ahuja and Kanwardeep Singh are the promoters of the company.
IPO details at a glance
Hem Securities Limited and Share India Capital Services Private Limited are the book running lead managers whereas Bigshare Services Pvt Ltd is the registrar for the New Swan Multitech IPO.
| IPO Application Date | January 11 to 15, 2024 |
| Listing Date | January 18, 2024 |
| Listing On | BSE SME |
| IPO Issue Type | Fresh Issue, Book Built IPO |
| Face Value | ₹10 per share |
| Price Range | ₹62 to ₹66 per share |
| Lot Size | 2,000 Shares |
| Total number of issues | 50,16,000 shares aggregating up to ₹33.11 Crore |
| Holdings before issue | 1,40,00,240 Shares |
| Holdings after issue | 1,90,16,240 Shares |
| Net Public Issues | 50,16,000 shares |
| QIB Investor Quota | Maximum 50% of net offering |
| Retail Investor Quota | Minimum 35% of net offering |
| NII Investor Quota | Minimum 15% of net offering |
The retail investors can bid only for 1 lot i.e., 2,000 shares whereas HNIs can bid for a minimum of 2 lots. The investment per lot amounts to ₹1,32,000.
Important dates
The dates are mentioned as per the tentative schedule given in New Swan Multitech Limited’s IPO RHP document.
| IPO opening date | January 11, 2024 (Thursday) |
| IPO closing date | January 15, 2024 (Monday) |
| UPI mandate confirmation cut-off time | 5 PM, January 15, 2024 (Monday) |
| Finalization of allotment basis | January 16, 2024 (Tuesday) |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | January 17, 2024 (Wednesday) |
| IPO Listing Date / Trading of Share | January 18, 2024 (Thursday) |
Company’s financials
New Swan Multitech Limited recorded a 4.05% growth in revenue and 173.15% rise in profit after tax (PAT) in the financial year ending in 2023 as compared to FY2022.
| Financial Period Ending in | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 2,981.75 | 1,989.82 | 1,626.68 |
| Total Assets | 12,876.43 | 12,348.80 | 11,769.68 |
| Revenue from operations | 15,116.04 | 14,546.71 | 14,947.45 |
| EBITDA | 2,022.34 | 1,149.28 | 1,061.56 |
| EBITDA Margin | 13.38% | 7.90% | 7.10% |
| Profit After Tax (PAT) | 991.93 | 363.14 | 342.63 |
| PAT Margin | 6.56% | 2.50% | 2.29% |
| Cash flow from operations | 2,063.15 | 1,166.42 | 973.46 |
| Reserves & Surplus | 2,631.74 | 1,639.81 | 1,276.67 |
| Total Borrowing | 3,915.70 | 4,800.59 | 4,580.55 |
| Amount in ₹ Lakhs | |||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| P/E | 9.31 |
| Earnings Per Share (EPS) | ₹7.09 |
| Return on equity (ROE) | 33.27% |
| Return on capital employed (ROCE) | 24.86% |
| Return on Net Worth (RoNW) | 33.27% |
Objects of the Issue
The company proposes to utilise the net proceeds from the issue towards repayment of a portion of its borrowings, funding the expenses in purchasing machineries for its manufacturing unit in Raian, Ludhinana, meeting working capital requirements and general corporate purposes.
Note: Refer to the official RHP document for detailed information.
