Sawaliya Food Shares Surge 90% on Strong Market Debut

Shares of Sawaliya Food Products debuted strongly on the National Stock Exchange Emerge platform on August 14, 2023, listing at Rs 228 per share. This opening price represents a remarkable 90 percent premium over the initial public offering (IPO) price of Rs 120 per share. The listing significantly exceeded grey market expectations, further demonstrating robust investor interest in the company.

Prior to the official listing, the unlisted shares of Sawaliya Food were being traded at a premium of 25 percent over the IPO price, valued at Rs 150 per share, as reported by Investorgain. The company’s IPO, valued at Rs 34.83 crore, attracted considerable attention during its three-day public bidding period, from August 7 to August 11, ultimately being subscribed more than 13 times.

Company Overview and Operations

Founded in 2014, Sawaliya Food Products is based in Madhya Pradesh and specializes in dehydrated fruits and vegetables. The company operates a facility with a production capacity of 1,500 metric tonnes for all dehydrated products. A substantial portion of its revenue, approximately 66 percent, comes from supplying dehydrated vegetables to the packaged food industry, which includes popular items such as cup noodles, ready-to-eat noodles, pasta, and soups.

In addition to serving the domestic market, Sawaliya Food also exports its products to various intermediaries in the United States, expanding its global footprint and customer base.

Use of IPO Proceeds and Future Plans

The funds raised from the IPO are earmarked for several strategic initiatives. Sawaliya Food intends to invest in new machinery and upgrade existing equipment, along with establishing an on-grid rooftop solar photovoltaic system with a capacity of 149.04 kWp. Furthermore, the company plans to allocate resources for working capital needs, debt repayment, and general corporate purposes.

The IPO was managed by Unistone Capital, serving as the sole merchant banker, and it has positioned Sawaliya Food for future growth and operational efficiency.

As the company moves forward, investor interest remains high, reflecting confidence in its business model and market potential.

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