New Swan Multitech IPO opens next week, price band set at ₹62-66 apiece

New Swan Multitech IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

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Modern farming and the automobile industry are the two industries in which New Swan Multitech Limited specialises in producing precision-engineered parts and components.

The company offers a wide range of automotive products, such as engine hangers, hinge body covers, fuel filler cap components, front cover stay components, main stand complete assemblies, engine guard plates, rear brake arm assemblies, separator breathers, cable guide assemblies, battery tray components, and numerous other essential parts for two-wheeler vehicles.

Tentatively, New Swan Multitech IPO basis of allotment of shares will be finalised on Tuesday, January 16 and the company will initiate refunds on Wednesday, January 17, while the shares will be credited to the demat account of allottees on the same day. New Swan Multitech shares are likely to be listed on BSE SME on Thursday, January 18.

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As per the company’s draft red herring prospectus (DRHP), the company’s listed peer’s are Sansera Engineering Limited (with a P/E of 34.62), Endurance Technologies Limited (with a P/E of 47.03), and JBM Auto Limited (with a P/E of 135.69).

During the fiscal year that ended on March 31, 2022, and March 31, 2023, New Swan Multitech Limited’s revenue increased by 4.05% and profit after tax (PAT) increased by 173.15%.

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New Swan Multitech IPO details

New Swan Multitech IPO, which is worth ₹33.11 crore, is completely a fresh issue of 5,016,000 equity share; there is no offer for sale (OFS) component, according to DRHP.

The net proceeds are proposed to be used as follows: to fund capital expenditures for the purchase of specific machinery for the company’s current manufacturing unit in Raian, Ludhiana; to repay a portion of certain borrowings that the company has taken out; to meet working capital requirements; and for general corporate purposes.

Kanwardeep Singh, Upkar Singh, and Barunpreet Singh Ahuja are the company’s promoters.

The registrar for the New Swan Multitech IPO is Bigshare Services Pvt Ltd, and the book running lead managers are Hem Securities Limited and Share India Capital Services Private Limited.

New Swan Multitech IPO GMP today

New Swan Multitech IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹66 with no premium or discount in the grey market according to investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 05 Jan 2024, 02:21 PM IST