Swastika Castal IPO Overview
Swastika Castal Limited’s SME IPO (BSE‑SME) opens July 21, 2025 and closes July 23, 2025. Fixed‑price issue of ₹14.07 crore via 21.64 lakh equity shares at ₹65 each (face value ₹10), entirely fresh. Fully offered to the public (retail & HNI). Proceeds earmarked for new plant & machinery, shed/building construction, working capital, and general corporate purposes.
Swastika Castal Subscription Status
| Category | Subscription (x) |
| QIBs | 0.00x |
| NIIs | 1.85x |
| Retails | 7.18x |
| Total | 4.28x |
| Last Updated: 23 July 2025 Time: 7 PM (Note: This data is updated every 2 hours) Source: NSE/BSE | |
IPO Key Date
Core Business & Overview
Swastika Castal Limited, incorporated in 1996, specializes in manufacturing high‑precision aluminium castings. With its headquarters in Vadodara, Gujarat, it offers a range of casting techniques—sand casting, gravity die casting, and centrifugal casting—serving sectors such as automotive, railways, electricals, power transmission, oil & gas, textiles, and heavy machinery. The company is ISO 9001:2008 certified and exports to Europe, Japan, and the USA.
Strengths
- Diverse Casting Capabilities: Expertise across multiple methods—sand, gravity die, and centrifugal casting—enabling customization for varied applications.
- Advanced In‑house Facilities: Operates its own machining, inspection, and testing infrastructure, ensuring quality control and operational efficiency.
- Established Promoter Experience: Strong lineage with founders Varun and Indra Sharda deeply rooted in aluminium casting since inception in 1996.
- Reputed Client Base: Supplies critical components to multinational companies in mission‑critical industries, evidencing reliability and global competitiveness.
Potential Risks
- Customer Concentration: The top 5 clients contribute over 80% of total revenue—indicating significant dependency.
- Single-Plant Vulnerability: Entire operations rely on one manufacturing facility—any disruption can impact production heavily.
- Supply Reliance: Dependent on a few raw-material suppliers, which poses procurement risk.
- No Dedicated Marketing Team: Heavy reliance on promoters for client acquisition could hinder growth if they are unavailable.
- Capital-Intensive Expansion Risks: The planned IPO proceeds include ₹5 crore forCapEx—slippage or overruns in machinery setup or construction may affect financial health.
- Regulatory & Compliance Exposure: Potential delays in obtaining permits or past regulatory missteps could pose setbacks.
- IPO-Specific Risk: As a first-time public company, there’s no market flow history; future share performance is uncertain.
Outcome
Swastika Castal Limited demonstrates a well-structured manufacturing setup and longstanding technical expertise in aluminium casting. Its global client base and certified quality standards position it well for future growth. However, potential investors should weigh the risks associated with client concentration, single-plant operations, sourcing dependencies, and operational over-reliance on promoters. The planned CapEx and upcoming SME IPO could catalyze expansion, provided execution is steady and regulatory hurdles are managed effectively.
Swastika Castal Financial
| Financial Year | Revenue (₹ crore) | Net Profit (₹ crore) | Total Assets (₹ crore) |
| FY 2023 | 24.01 | 0.58 | 26.23 |
| FY 2024 | 22.77 | 0.65 | 23.82 |
| FY 2025 | 29.66 | 2.63 | 30.83 |
Revenue
- FY 2023 ➝ FY 2024: Revenue declined by 5.16% (from ₹24.01 cr to ₹22.77 cr), indicating a possible slowdown or order drop.
- FY 2024 ➝ FY 2025: Revenue increased significantly by 30.25% (from ₹22.77 cr to ₹29.66 cr), showing strong business growth, likely due to new clients or higher demand.
Net Profit
- FY 2023 ➝ FY 2024: Profit grew slightly (from ₹0.58 cr to ₹0.65 cr) despite lower revenue, suggesting better cost control.
- FY 2024 ➝ FY 2025: Profit jumped over 4x (from ₹0.65 cr to ₹2.63 cr), indicating improved operational efficiency and strong profitability.
Total Assets
- FY 2023 ➝ FY 2024: Assets dropped by 9.2% (from ₹26.23 cr to ₹23.82 cr), possibly due to asset sale or depreciation.
- FY 2024 ➝ FY 2025: Assets increased by 29.4% (to ₹30.83 cr), likely due to fresh capital expenditure, new machinery, or IPO preparations.
Conclusion
Swastika Castal Limited showed strong financial recovery and growth in FY 2025, especially with a sharp rise in profit and revenue. The previous year saw a decline in revenue and assets, but the turnaround in FY 2025 suggests improved operations and rising demand. These trends are encouraging for potential investors, though past fluctuations should be considered before making investment decisions.
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
