New Swan Multitech SME IPO: Check price band, GMP, financials, risks and listing date

The Rs 33-crore initial public offering (IPO) of New Swan Multitech Limited opened for subscription on January 11. The IPO, purely a fresh issue, will close on January 15.

Incorporated in 2014, the company specialises in the manufacture of precision-engineered components and parts for two sectors namely the automotive industry and modern farming.

Issue Size

The public offer is entirely a fresh issue of 50.16 lakh shares.

Price Band

The price band for the offer has been fixed at Rs 62-Rs 66 per share.

Lot Size

Investors can bid for a minimum of 2,000 equity shares and in multiples thereof.

Financial Performance

For fiscal 2023, the company reported a revenue of Rs 151.4 crore and a net profit of Rs 9.9 crore.

Objectives of the issue

New Swan will utilise IPO proceeds for the purchase of certain machinery for the existing manufacturing unit at Raian, Ludhiana, repaying debts, and working capital requirements, besides general corporate purposes.

Promoters of the company

The promoters of the company are Upkar Singh, Barunpreet Singh Ahuja and Kanwardeep Singh.

Lead managers

Hem Securities Limited and Share India Capital Services Private Limited are the book-running lead managers of the New Swan Multitech IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Key risks

i.) The company depends significantly on the performance of the automotive sector (particularly two-wheelers) and the agricultural sector in India for the sale of its products. Any adverse change in the performance of these sectors could adversely affect business and profitability.

ii.) New Swan relies on third parties for the supply of raw materials and certain finished products. These parties could fail to meet their obligations, which may have a material adverse effect on business, results of operations and financial condition.

Grey Market Premium

The grey market premium (GMP) surged to Rs 36, or 56 percent, over the issue price of Rs 66 on January 11. The GMP implies a listing price of Rs 103.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

Listing Date

New Swan Multitech IPO will be listed on BSE SME with a tentative listing date fixed as January 18.