BSE SME New Swan Multitech spurts on debut

Shares of New Swan Multitech were quoting at Rs 131.67 on the BSE, a premium of 99.50% compared with the issue price of Rs 66.

The scrip was listed at Rs 125.40, a premium of 90% compared with the initial public offer (IPO) price. The stock was currently frozen in an upper limit of 5% over its listing price.

The counter hit a high of Rs 131.67 and a low of Rs 125.40. About 14 lakh shares of the company changed hands at the counter.

New Swan Multitech's IPO was subscribed 255.30 times. The issue opened for bidding on 11 January 2024 and it closed on 15 January 2023. The price band of the IPO is fixed at Rs 62 to Rs 66 per share.

The IPO comprises fresh issue of 50,16,000 shares. The promoter and promoters shareholding will dilute to 73.62 % from 100% pre-IPO.

The company intends to utilize the net proceeds for funding of capital expenditure towards purchase of certain machineries for existing manufacturing unit located at Raian, Ludhiana, to meet working capital requirements, repayment of a portion of certain borrowing availed by company and general corporate purposes.

Ahead of the IPO, New Swan Multitech on Wednesday, 10 December 2023, raised Rs 9.42 crore from anchor investors. The board allotted 14.28 lakh shares at Rs 66 per share to 7 anchor investor.

New Swan Multitech are engineering-led manufacturer of complex and critical precision engineered components and parts used in automotive sector and agricultural farm machineries designed to meet the diverse needs of modern farming. Within the automotive sector, it manufacture, procure and supply a range of precision machined tubular assemblies, welded assemblies, precision brackets and sheet metal parts. In agricultural sector, it design, manufacture and supply 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. As on 31 October 2023, the company has 184 employees.

The company recorded revenue from operations of Rs 77.85 crore and net profit of Rs 4.97 crore for the period as on 30 September 2023.

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