IPO Details
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IPO Size
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Schedule of Sawaliya Food Products IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Sawaliya Food Products IPO
Sawaliya Food Products Limited IPO is an IPO of up to 29,03,000 equity shares. It consists of an offer for sale of up to 3,00,000 equity shares and a fresh issue of up to 26,03,000 equity shares. The lot size and the price range is yet TBA.
The listing of the shares will take place on TBA. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Sawaliya Food Products IPO
- Funding capital expenditure requirements towards (i) the purchase of new machinery and upgradation of existing machinery installed; and (ii) the setting up of an on-grid rooftop solar PV system with a capacity of 149.04 KWp at their existing manufacturing unit.
- Funding of working capital requirements.
- Repayment and/or prepayment, in part or full, of certain borrowings availed by the company.
- General corporate purposes.
Sawaliya Food Products IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 3,00,000Equity Shares |
Fresh Issue | Up to 26,03,000 Equity Shares |
EPS (₹)For the year ended March 31, 2024 | 4.50 |
Sawaliya Food Products IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% |
Non-Institutional Investors (NIIs) | Not less than 15% |
Retail Individual Investors | Not less than 35% |
Industry Outlook
The food processing industry in India is still in its early stages, contributing less than 10% to the total food output. The market size of the food processing sector in India is estimated to reach US$1,27,400 crore in 2027 from US$86,600 crore in 2022. India's agricultural and processed food exports rose to more than US$5,000 crore in 2022-23, accounting for 22.6% of the overall agri-food exports.
India is one of the most populous countries in the world and is expected to continue having one of the youngest populations in the world until 2030. The rapid population expansion in India along with changing lifestyles and food habits due to rising disposable income and urbanisation are driving the growth in the industry. The growing consumption of food is expected to reach US$1,20,000 crore in India by 2025-26, owing to these factors.
The Mega Food Park (MFP) Scheme was launched to integrate agricultural production with the market by bringing together farmers, processors, and retailers. The scheme follows a cluster approach, establishing modern food processing units within well-defined agri/horticultural zones. Each park includes supply chain infrastructure like collection centres, processing units, and cold chains, along with developed plots for entrepreneurs.
India exported US$111.32 crore worth of ready-to-eat products, US$49.79 crore worth of ready-to-cook products and US$53.78 crore worth of ready-to-serve products from April to December in FY24.
Company Information
Founded in 2014, Sawaliya Food Products Limited is a manufacturer and processor of dehydrated vegetables, serving leading institutional manufacturers engaged in branded packaged food industries, traders, and international importers of dehydrated products. Their products find wide application as raw materials in the fast-moving consumer goods (FMCG) industry, for products such as cup noodles, ready-to-eat noodles, pasta, soup, etc. Their main products include dehydrated carrot, dehydrated cabbage, and dehydrated ring beans/beans. Over the years, they have crafted a sustainable as well as an integrated business model wherein they source their raw materials directly from farmers to ensure that they use absolutely natural ingredients in their products. Since the farmers are located in close proximity to their manufacturing unit, they have an advantage of procuring desired quantity of raw materials, mainly being carrots, at cost-competitive prices and low logistical costs.
Strengths of Sawaliya Food Products IPO
Flexible and diversified product portfolio.
Their manufacturing facilities have been designed and executed in such a manner that the machinery installed can process and manufacture products in addition to their existing products, thus enabling them to expand their product portfolio without having to make substantial infrastructural changes. To capitalise on this ability, they propose to expand their products to include dried papaya, dried beetroot and dried pumpkin.
Sustainable business operations.
In order to effectively follow quality norms prescribed by their clients, they procure organic vegetables directly from farmers in Madhya Pradesh and Amritsar. They also procure vegetables from Agricultural Produce Market Committee (APMC) to maintain cost-competitiveness and freshness of their raw materials. Additionally, the machinery installed at their manufacturing unit utilises automatic heat generation to dehydrate vegetables, to reduce the generation and release of steam outside the manufacturing unit.
Strategically located manufacturing facility with modern infrastructure and integrated manufacturing facilities with a core focus on quality.
Their strategically located multi-product manufacturing unit manufactures products close to their suppliers and reduces their costs of transportation by manufacturing almost all their products under one roof, thereby giving them an advantage over their competitors. Their manufacturing unit is situated in District Dhar in Madhya Pradesh.
Risks of Sawaliya Food Products IPO
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Their business is subject to seasonal variations that could result in fluctuations in their results of operations. Further, fresh vegetables being the principal raw material used for manufacturing of their products, their business depends on the availability of such vegetables and any shortage of vegetables may adversely affect their business and results of operations.
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Their company is reliant on the demand from the FMCG industry for a significant portion of their revenue. Any downturn in the FMCG industry or an inability to increase or effectively manage their sales could have an adverse impact on their company's business and results of operations.
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Their manufacturing unit and their operations are geographically concentrated in Madhya Pradesh. Consequently, they are exposed to risks from economic, regulatory and other developments in such region which could have an adverse effect on their business, results of operations and financial condition. Further, their continued operations are critical to their business and any shutdown of their manufacturing unit may adversely affect their business, results of operations and financial condition.
Sawaliya Food Products IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Sawaliya Food Products Limited | ADF Foods Limited |
|---|---|---|
Revenue from operations for the year ended March 31, 2024 (₹ in crores) | 23.39 | 520.33 |
P/E | -- | 34.94 |
EPS (Diluted) (₹) | 4.50 | 6.85 |
Return on Net Worth (%) | 56.04 | 17.15 |
NAV per share (₹) | 10.07 | 40.15 |
Business Model
The company earns its revenue through the following source:
Manufacturing and processing of dehydrated vegetables, and serving leading institutional manufacturers engaged in branded packaged food industries, traders, and international importers of dehydrated products.
Company Growth Trajectory
Their revenues from operations grew over the years as seen for the fiscals 2024, 2023, and 2022 were ₹23.40 crores, ₹15.09 crores, and ₹13.56 crores, respectively. Their EBITDA for the three-month period that ended on June 30, 2024, and the fiscals 2024, 2023, and 2022 were ₹2.60 crores, ₹5.98 crores, ₹1.61 crores, and ₹1.41 crores, respectively. Their profit after tax for the fiscals 2024, 2023, and 2022 were ₹3.29 crores, ₹0.59 crores, and ₹0.73 crores, respectively, reflecting growth for the company. The number of customers associated with the Company also increased to 84 in 2024 from 11 in 2022.
Company Market Position
They generate major sales from their customers situated in select geographical regions, namely Karnataka, Maharashtra, and Madhya Pradesh. As of 2024, the number of customers associated with the Company is 84. The company also intends to increase their distribution network by adding additional institutional customers to their customer base, domestically as well as internationally.
Sawaliya Food Products Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 13.56 | 15.08 | 23.39 |
Profit Before Tax (₹ crores ) | 0.69 | 0.72 | 4.43 |
Net profit / (loss) (₹ crores) | 0.73 | 0.59 | 3.29 |
EBITDA (₹ crores) | 1.40 | 1.61 | 5.97 |
EPS (₹) | 1 | 0.81 | 4.5 |
Sawaliya Food Products Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹crores) | 0.69 | 0.72 | 4.43 |
Cash from Operating Activities (₹ crores) | 0.93 | 0.07 | 0.64 |
Net Cash from Investing Activities (₹ crores) | -1.06 | -5.6 | 1.81 |
Net Cash from Financing Activities (₹ crores) | -0.04 | 5.57 | -1.69 |
Cash and Cash Equivalents (₹ crores) | 0.05 | 0.10 | 0.87 |
How To Check Allotment Status of Sawaliya Food Products IPO?
You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Skyline Financial Services Private Limited. To check the status on the NSE website:
- Visit the NSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Sawaliya Food Products Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Skyline Financial Services Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Sawaliya Food Products Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Sawaliya Food Products IPO
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Sawaliya Food Products IPO FAQs
Where can I read more about Sawaliya Food Products business?
You can read more about Sawaliya Food Products and its IPO from the company’s red herring prospectus (RHP) here.
What is the Sawaliya Food Products IPO?
The Sawaliya Food Products Limited IPO has an issue size of up to 29,03,000 equity shares. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Sawaliya Food Products IPO?
Skyline Financial Services Private Limited is the registrar for this IPO.
