The Rs 14.07-crore IPO of Swastika Castal opened for subscription on Monday. The fixed-price issue is entirely a fresh offering of 21.64 lakh shares, priced at Rs 65 per share. The IPO will close on Wednesday and the listing is expected on BSE SME on July 28.
Despite a strong jump in FY25 profit, the IPO has drawn no premium in the grey market, signaling neutral sentiment from investors going into day one. Retail investors must apply for a minimum of 4,000 shares.
Horizon Management is the book-running lead manager, and Accurate Securities is the registrar. Horizon Financial Consultants will act as market maker.
About the company
Swastika Castal, incorporated in 1996, manufactures high-quality aluminium castings through sand, gravity, and centrifugal casting processes. The company caters to diverse industrial applications—ranging from electrical equipment and railways to air compressors and insulators.
It boasts in-house heat treatment capabilities and a focus on precision casting, offering solutions for complex geometries and high-performance parts.
Financial performance
The company reported a PAT of Rs 2.63 crore in FY25, up from Rs 0.65 crore in FY24. Revenue rose to Rs 30.31 crore, a 30% increase YoY. EBITDA stood at Rs 4.55 crore, with margins at 15.36%.
At the issue price, the company is valued at Rs 53.07 crore post-issue, translating to a P/E of 20.1x on FY25 earnings.
Proceeds from the issue will be used for capital expenditure on plant and machinery (Rs 5 crore) and working capital requirements (Rs 5 crore)
With a solid financial turnaround and growing sector demand, investors will be closely watching how the IPO fares despite a flat GMP.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Despite a strong jump in FY25 profit, the IPO has drawn no premium in the grey market, signaling neutral sentiment from investors going into day one. Retail investors must apply for a minimum of 4,000 shares.
Horizon Management is the book-running lead manager, and Accurate Securities is the registrar. Horizon Financial Consultants will act as market maker.
About the company
Swastika Castal, incorporated in 1996, manufactures high-quality aluminium castings through sand, gravity, and centrifugal casting processes. The company caters to diverse industrial applications—ranging from electrical equipment and railways to air compressors and insulators.
It boasts in-house heat treatment capabilities and a focus on precision casting, offering solutions for complex geometries and high-performance parts.
Financial performance
The company reported a PAT of Rs 2.63 crore in FY25, up from Rs 0.65 crore in FY24. Revenue rose to Rs 30.31 crore, a 30% increase YoY. EBITDA stood at Rs 4.55 crore, with margins at 15.36%.
At the issue price, the company is valued at Rs 53.07 crore post-issue, translating to a P/E of 20.1x on FY25 earnings.
Proceeds from the issue will be used for capital expenditure on plant and machinery (Rs 5 crore) and working capital requirements (Rs 5 crore)
With a solid financial turnaround and growing sector demand, investors will be closely watching how the IPO fares despite a flat GMP.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
