New Swan Multitech share price: New Swan Multitech sees 90% premium listing over IPO price

Shares of New Swan Multitech listed with a premium of 90% on the BSE SME platform on Wednesday. The stock debuted at Rs 125.4, compared with an offer price of Rs 66.

Ahead of the debut, the company’s shares commanded a GMP of Rs 56 in the unlisted market.

New Swan Multitech’s public offer was subscribed 380 times at close. The category reserved for retail investors was subscribed 388 times and the NII portion was booked 730 times.

The IPO was entirely a fresh equity issue of 50.16 and through the issue, the company plans to raise Rs 33.11 crore.

The net proceeds from the public offer will be used for funding capital expenditure towards purchase of machinery, repayment of borrowings, and working capital requirements.

The company is an engineering-led manufacturer of complex and critical precision engineered components and parts used in the automotive sector and agricultural implements designed to meet the diverse needs of modern farming.

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Within the automotive sector, it makes, procures and supplies a range of precision machined tubular assemblies, welded assemblies, precision brackets and sheet metal parts.

In the agricultural implements sector, the company manufactures a comprehensive range of agricultural implements that cater to different aspects of farming such as soil preparation, sowing, crop management, harvesting and crop residue management.

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The company’s product portfolio has over 300 SKU’s of agricultural implements and auto components.

For the fiscal year 2023, the company clocked total income of Rs 151.4 crore and net profit of Rs 9.9 crore. In FY23, total income rose 4% year-on-year to Rs 151 crore, while profit after tax more than doubled to Rs 9.91 crore.

For fiscal 2023, 61% of revenue was derived from the auto components segment and 37% from the agricultural implements segment.

Hem Securities and Share India Capital were the lead managers to the issue and Bigshare Services was the registrar.

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