New Swan Multitech Limited IPO

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  1. Product Range:
    • The company offers a diverse range of agricultural implements, catering to various aspects of farming such as soil preparation, sowing, crop management, harvesting, and crop residue management. The product portfolio includes rotovators, seeders, super seeders, weeders, potato planter, potato digger, fertilizer spreader, mulcher, puddler, laser land leveller, disc ploughs, and more.
  2. Manufacturing Units:
    • The company has two manufacturing units, one located in Village Raian, Ludhiana, Punjab, and the other in Village Vithlapur, Ahmedabad, Gujarat. Each unit is equipped with specialized machinery for manufacturing agricultural implements and auto components, respectively.
  3. Quality Control:
    • Products undergo stringent quality checks and testing in laboratories at the company’s facilities. The quality control measures include well-equipped laboratories, modern technology, and testing equipment to ensure that the products meet desired quality standards.
  4. Revenue Streams:
    • The company generates revenue from two main segments: auto components and agricultural implements. For Fiscal 2023, 60.70% of revenue came from the auto components segment, and 37.13% came from the agricultural implements segment.
  5. R&D Capabilities:
    • The company has research and development capabilities, including in-house tool designing, design simulation, prototyping, and testing abilities. Various testing equipment, such as CMM, Weld Penetration, Universal Testing Machine, Salt Spray Testing Machine, Humidity Testing Machine, and Hardness Tester, are mentioned.
  6. Supplier Relationships:
    • The company procures certain auto-components from its Promoter Group entity, M/s New Swan Enterprises. The components include fuel cap & bracket for seat latch, stay stopper rubber, body cover, plate engine guards, side stand, and various other items.
  7. Product Portfolio and Intellectual Property:
    • The company’s product portfolio comprises over 300 SKUs of agricultural implements and auto components. They also own design registrations for specific agricultural implements, which are registered with the Patent Office, Government of India.
  8. Customer Base:
    • In the automotive segment, the company supplies products directly to OEMs (Original Equipment Manufacturers). Notable customers include Honda Motorcycle and Scooter India (HMSI), MG Motors, and Mahindra & Mahindra.
  9. Distribution Network:
    • In the agricultural implements segment, the company has a wide distribution network comprising over 200 dealers covering 11 states in India. They also supply agricultural implements to OEMs such as Mahindra & Mahindra, John Deere India Pvt. Ltd.
  10. International Presence:
    • The company exports its agricultural implements to countries such as Mauritius, Russia, Kazakhstan, South Africa, Sudan, and Nepal, contributing to a percentage of their revenue.

Objects of the New Swan Multitech Limited IPO:

The Net Proceeds are proposed to be used in accordance with the details as set forth below: i. Funding of capital expenditure towards purchase of certain machineries for existing manufacturing unit located at Raian, Ludhiana ii. Repayment of a portion of certain borrowing availed by the company iii. To meet working capital requirements iv. General Corporate Purpose.
DRHP of New Swan Multitech Limited IPO
RHP of New Swan Multitech Limited IPO

New Swan Multitech Limited IPO Details:

Open Date: Jan 11 2024
Close Date: Jan 15 2024
Total Shares: 5,016,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 33.11 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 62 - 66 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 18 2024

Promoters And Management:

Upkar Singh is the Chairman & Managing Director of the Company. He has been on the Board since incorporation. He is a visionary entrepreneur and has played a pivotal role in expanding business operations of the Company. He encompasses over 38 years of experience in the auto components industry, and within this tenure, he has acquired approximately 9 years of experience in the agricultural implements sector. He has completed his Graduate from Punjab University in the year 1962. He currently looks after the overall management of the Company. Under his guidance, the Company has witnessed continuous growth. Barunpreet Singh Ahuja is the Whole Time Director of the Company. He encompasses over 12 years of experience in the auto components industry, and within this tenure, he has acquired approximately 9 years of experience in the agricultural implements sector. He has completed his Master in Business Administration from the ICFAI University, Tripura in year 2019. He is currently looking after the auto-components segment of the Company Kanwardeep Singh is the Executive Director of the Company. He has been on the Board since incorporation. He has completed his Diploma in Tools and Die Technology from Punjab State Board of Technical Education and Industrial Training in 1993. He encompasses over 21 years of experience in the auto components industry, and within this tenure, he has acquired approximately 9 years of experience in the agricultural implements sector. He is currently looking after the agricultural implements segment of the Company and overall accounts and finance of the Company.

Financials of New Swan Multitech Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 14,947 14,547 15,116 7,785
Other Income 13 6 26 3
Total Revenue 14,961 14,552 15,142 7,788
Cost of Material Consumed 9,678 9,545 9,985 5,174
Change in Inventories 334 312 -710 -340
Employees Benefit Expenses 2,075 1,894 1,960 940
Other Expenses 1,783 1,621 1,843 883
EBITDA 1,090 1,180 2,064 1,131
Depreciation & Amortisation 295 297 334 175
Finance Cost 308 376 356 227
EBIT 795 883 1,730 955
OPM (%) 7.29% 8.11% 13.63% 14.52%
PBT 488 507 1374 729
Tax 145 144 382 231
PAT 343 363 992 498
NPM (%) 2.29% 2.50% 6.55% 6.39%
No.of Shares 190.16 190.16 190.16 190.16
EPS 1.80 1.90 5.21 2.61

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
New Swan Multitech Ltd 151 10 5.21 12.7 66 126
Sansera Engineering Limited 2,090 150 28.38 34.6 1,030 5,521
Endurance Technologies Limited 8,804 480 34.09 50.5 2,017 28,374
JBM Auto Limited 3,857 125 10.52 166.0 1,921 22,720
* All the data is as per FY23.

Lead Manager of New Swan Multitech Limited IPO:

  1. Hem Securities Limited
  2. Share India Capital Services Private Limited

Registrar of New Swan Multitech Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

New Swan Multitech Limited 310, Vardhman Crown Mall, Plot No. 2, Sector-19, District Court Complex, Dwarka New Delhi, South West Delhi - 110 075 Phone: +91-161-4346000 Email: cs@swanagro.in Website: https://www.swanagro.in/

Discussion on New Swan Multitech Limited IPO:

1 Comment

    Is there any differentiation of sNII and bNII while applying in SME IPOs or is it just considered NII category only even if the amount applied is more than 10lacs in SME IPOs. please clarify.

    Reply

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