Sawaliya Food Shares Surge 90% on NSE Emerge Listing

Shares of Sawaliya Food Products made an impressive entry into the market on August 14, 2023, listing at Rs 228 each on the NSE Emerge platform. This represents a remarkable premium of 90 percent over the initial public offering (IPO) price of Rs 120. The listing far exceeded grey market expectations, where pre-listing trades suggested a premium of only 25 percent at Rs 150, according to data from Investorgain.

The Rs 34.83 crore IPO, which took place from August 7 to August 11, attracted significant interest from investors, achieving a subscription rate of more than 13 times. The public issue consisted of a fresh issue of 2.6 million shares, alongside an offer-for-sale of 300,000 shares from promoters Raghav Somani and Priya Somani.

Company Background and Market Position

Established in 2014, Sawaliya Food Products operates a facility in Madhya Pradesh with a production capacity of 1,500 MT for dehydrated products. The company primarily serves the packaged food industry, with dehydrated vegetables accounting for 66 percent of its revenue in the fiscal year 2025. These products are integral to various fast-moving consumer goods, including cup noodles, ready-to-eat meals, pasta, and soups.

Additionally, Sawaliya Food exports its finished products to various intermediaries in the United States, expanding its market reach beyond domestic borders.

The funds raised from the IPO will be allocated towards purchasing new machinery, upgrading existing facilities, and establishing a rooftop solar photovoltaic system with a capacity of 149.04 kWp. The company plans to use the remaining funds for working capital needs, debt repayment, and general corporate expenses.

Investment Insights and Future Outlook

The successful debut of Sawaliya Food highlights a growing interest in food production companies, particularly those focusing on value-added products. As the demand for convenient and healthy food options expands globally, companies like Sawaliya Food are well-positioned to capitalize on these trends.

Unistone Capital serves as the sole merchant banker for the Sawaliya Food Products IPO, guiding the company through its public offering process.

Investors are advised to conduct thorough research and consult certified experts before making any financial decisions. The enthusiasm surrounding Sawaliya Food’s listing underscores the potential for growth in the dehydrated food sector, reflecting broader trends in consumer preferences and market dynamics.