Sawaliya Foods Products IPO: A Deeper Look into a Growing Agri-Food Business
The Indian primary market is buzzing, and the upcoming Sawaliya Foods Products IPO is certainly garnering attention. As an SME offering, it presents a unique opportunity for investors to potentially participate in the growth story of a company specializing in dehydrated vegetables. Let's delve into the details of this Initial Public Offering, analyzing the company's strengths, financial health, and what it aims to achieve with the fresh capital.
About the Company: Sawaliya Foods Products Ltd.
Established in July 2014, Sawaliya Foods Products Limited has carved a niche for itself as a manufacturer and processor of dehydrated vegetables. The company primarily caters to the branded packaged food industry and international importers, with a significant presence in markets like the United States.
Their core operations involve sourcing raw materials like carrots, cabbage, and string beans directly from farmers. These dehydrated products find extensive use as raw materials in various Fast-Moving Consumer Goods (FMCG) applications, including cup noodles, ready-to-eat noodles, pasta, and soups. The company prides itself on its robust manufacturing unit in Dhar, Madhya Pradesh, boasting a capacity of approximately 1500 MT across two facilities. A notable aspect of their operations is their commitment to a zero-wastage policy, ensuring efficient resource utilization by selling unused raw materials and exporting sub-standard products for pet food production. As of June 2025, the company employed 25 individuals across various departments.
Understanding the Sawaliya Foods Products IPO Offering
The Sawaliya Foods Products IPO is structured as a book-building issue, aimed at raising capital to fuel the company's expansion and operational needs.
Key Offer Insights
- Issue Type: SME IPO (Book Building)
- Total Issue Size: 29,02,800 equity shares, aggregating up to ₹34.83 Crores.
- Issue Composition: A blend of a fresh issue of 26.03 lakh shares (₹31.23 Crores) and an offer for sale (OFS) of 3.00 lakh shares (₹3.60 Crores).
- Face Value: ₹10 per share.
- Price Band: ₹114 to ₹120 per share.
- Listing Venue: NSE SME.
Investment Tiers and Lot Sizes
The IPO specifies different investment slabs for various investor categories:
| Investor Category | Minimum Lot Size | Shares per Lot | Minimum Investment Amount (approx.) |
|---|---|---|---|
| Individual Investors (Retail) | 2 Lots | 2,400 Shares | ₹2,88,000 |
| Small High Net Worth Individuals (S-HNI) | 3 Lots | 3,600 Shares | ₹4,32,000 |
| Big High Net Worth Individuals (B-HNI) | 7 Lots | 8,400 Shares | ₹10,08,000 |
Important Dates for Investors
Mark your calendars with these key dates for the Sawaliya Foods Products IPO:
Analyzing Sawaliya Foods Products Ltd.'s Financial Journey
A look at the company's financial performance over the past few years reveals a strong growth trajectory.
Revenue and Profit Trajectory
Sawaliya Foods Products Ltd. has demonstrated impressive financial growth, with a significant increase in both revenue and profitability.
| Financial Year Ended (March 31) | Assets (₹ Cr) | Total Income (₹ Cr) | Profit After Tax (PAT) (₹ Cr) | EBITDA (₹ Cr) | Total Borrowing (₹ Cr) |
|---|---|---|---|---|---|
| 2023 | 20.04 | 15.30 | 0.59 | 1.69 | 13.36 |
| 2024 | 25.40 | 23.67 | 3.12 | 6.12 | 12.93 |
| 2025 | 46.26 | 34.34 | 6.95 | 12.22 | 22.49 |
From FY2024 to FY2025, the company's revenue increased by 45%, and its profit after tax (PAT) saw a remarkable surge of 123%. While total borrowings have seen an increase in FY2025, the growth in revenue and profit indicates robust operational performance.
Key Performance Indicators (KPIs)
As of March 31, 2025, the company's market capitalization stands at ₹119.02 Crores. Here are some key performance metrics:
| Key Performance Indicator | Value |
|---|---|
| Return on Equity (ROE) | 75.70% |
| Return on Capital Employed (ROCE) | 48.96% |
| Debt/Equity Ratio | 1.78 |
| Profit After Tax (PAT) Margin | 20.32% |
| Earnings Per Share (Pre-IPO) | ₹9.49 |
| Price/Earnings (Pre-IPO) | 12.64x |
Why is the Company Raising Funds? (Objects of the Issue)
The net proceeds from the IPO are earmarked for several strategic initiatives:
- Funding capital expenditure for new machinery, upgrading existing machinery, and establishing an on-grid rooftop solar PV system at the manufacturing unit (₹7.49 Crores).
- Meeting working capital requirements (₹10.00 Crores).
- Partial or full repayment/pre-payment of certain company borrowings (₹4.61 Crores).
- General corporate purposes to support overall business operations.
Leadership and Ownership Structure
The company is promoted by Raghav Somani and Priya Somani. Their commitment to the business is evident in the promoter holding.
- Promoter Holding (Pre-Issue): 96.00%
- Promoter Holding (Post-Issue): 67.78%
Strategic Analysis: A SWOT Overview
Understanding a company's position involves looking at its internal strengths and weaknesses, as well as external opportunities and threats.
Strengths
- Strong customer relationships leading to business stability.
- Flexible and diverse product offerings catering to various food applications.
- Established position as a manufacturer and exporter to prominent brands.
- Robust quality assurance and control processes.
- Strategically located and modern manufacturing facilities.
- Cost-efficient raw material sourcing and advantageous location.
- Experienced and capable management team.
- Commitment to zero-wastage for efficient resource utilization.
- Impressive growth in financial performance (revenue and PAT).
Weaknesses
- Potential reliance on direct farmer sourcing for raw materials could pose supply chain risks.
- Concentration in specific dehydrated vegetables (carrots, cabbage, string beans).
- The significant recent surge in profitability might warrant closer scrutiny for sustainability.
- Increased borrowings in the latest financial period.
- As an SME listing, it may face relatively higher risks and lower liquidity compared to mainboard IPOs.
- The IPO valuation appears to be set at a demanding level.
Opportunities
- Growing demand in the global packaged food and ready-to-eat sectors.
- Expansion into new international markets for dehydrated food products.
- Ability to capitalize on evolving consumer preferences for healthy and convenient food solutions.
- Leveraging existing infrastructure for product diversification within dehydrated foods.
- Potential to further enhance profitability through operational efficiencies and scale.
Threats
- Volatility in agricultural commodity prices impacting raw material costs.
- Intense competition from domestic and international players in the food processing industry.
- Potential for adverse regulatory changes concerning food safety, import/export norms.
- Economic downturns affecting consumer spending power on processed food items.
- Risks associated with maintaining brand reputation and quality standards.
Participating in the IPO: A Brief Guide
Investors interested in applying for the Sawaliya Foods Products IPO can do so through various platforms. For instance, customers of many leading brokers can typically apply online using UPI as a payment gateway. The process generally involves logging into your broker's platform, navigating to the IPO section, submitting your bid with UPI ID, quantity, and price, and then approving the mandate via your UPI application.
Essential Contacts for the Issue
Company Contact Details
Sawaliya Foods Products Ltd.
Survey No. 9/2/1/2, Gavla, Tehsil Pithampur,
Dhar, Madhya Pradesh, 454775
Phone: +91 877 032 6514
Email: info@sawaliyafood.com
IPO Registrar
Skyline Financial Services Private Ltd
Phone: 02228511022
Email: ipo@skylinerta.com
Concluding Thoughts
Sawaliya Foods Products Ltd. operates in a promising segment of the agri-food industry, leveraging its expertise in dehydrated vegetables. The company's recent financial performance showcases robust growth, indicating operational efficiency and market demand for its products. While the observed surge in bottom lines and the valuation might prompt cautious consideration, the proposed utilization of IPO funds for capital expenditure and working capital signals a clear path for future expansion. Potential investors should carefully evaluate these aspects, considering their investment objectives and the inherent risks associated with SME listings, before making a well-informed decision for the medium term.