SAWALIYA FOOD PRODUCTS IPO

Key Details of the SAWALIYA FOOD PRODUCTS IPO

Important Dates for SAWALIYA FOOD PRODUCTS IPO

• Opening Date: 07 Aug 2025
• Closing Date: 11 Aug 2025
• UPI Payment Deadline: 11 Aug 2025 (5 PM)
• Allotment Announcement: 12 Aug 2025
• Refund Processing: 13 Aug 2025
• Demat Credit: 13 Aug 2025
• Stock Market Listing: 14 Aug 2025
• Mandate Validity End: 26 Aug 2025
• Anchor Investor Lock-in Release (50%): 11 Sep 2025
• Anchor Investor Lock-in Release (Remaining): 10 Nov 2025

*Dates may be revised as per official updates.

Understanding SAWALIYA FOOD PRODUCTS

Founded in 2014, Sawaliya Food Products operates in the dynamic food processing sector, specializing in the manufacturing and processing of dehydrated vegetables. The company’s expertise lies in producing high-quality dehydrated carrots, cabbage, and string beans, which are critical ingredients in various modern food formulations. These essential components play a vital role in the convenience food industry, being widely utilized in popular products such as instant noodles, pasta, soups, and other ready-to-eat meals.

Sawaliya Food Products primarily serves the branded packaged food sector and caters to international importers, fulfilling a growing demand for shelf-stable and easy-to-use food ingredients. The company is recognized for its unwavering commitment to maintaining stringent quality and hygiene standards throughout its production processes. This dedication ensures that their products not only meet but often exceed global food safety regulations, positioning Sawaliya Food Products as a reliable and trusted supplier capable of seamlessly integrating into the evolving and demanding supply chains of Fast-Moving Consumer Goods (FMCG) enterprises worldwide.

IPO Issue Structure and Financial Insights

The initial public offering (IPO) of Sawaliya Food Products is set to raise a total of ₹34.83 Crores from the market. This public issue is strategically divided into two main components: a fresh issue and an Offer for Sale (OFS). The fresh issue component, amounting to ₹31.23 Crores, involves the issuance of new shares by the company. The capital generated from this segment will directly flow into Sawaliya Food Products, earmarked for specific growth and operational objectives as detailed in their prospectus.

The remaining ₹3.60 Crores constitute the Offer for Sale (OFS) component. In this portion, existing shareholders, including promoters and early investors, will sell a part of their holdings. It is important for potential investors to note that the proceeds from the OFS component will go to these selling shareholders and not directly to the company. While specific financial figures beyond growth trends are not disclosed in detail, Sawaliya Food Products has consistently demonstrated growth in revenue and profitability, reflecting a positive operational trajectory that underpins this market offering.

Strategic Utilisation of IPO Funds

The capital raised through the fresh issue component of the IPO is strategically earmarked for several key objectives crucial to Sawaliya Food Products’ sustained growth and operational efficiency. The planned deployment of these funds is as follows:

A significant portion of the fresh issue proceeds is allocated to capital expenditure, which includes the purchase of new, advanced machinery and the upgradation of existing equipment. This investment is vital for enhancing the company’s production capacity, improving operational efficiency, and adopting modern processing techniques. Additionally, a notable initiative is the setting up of an on-grid rooftop solar PV system, reflecting the company’s commitment to sustainable energy and reducing long-term operational costs. A substantial allocation is also made towards bolstering working capital, which is crucial for managing day-to-day operations, ensuring smooth procurement of raw materials, and handling inventory effectively, especially given the seasonal nature of agricultural products.

Furthermore, a portion of the funds will be used for the repayment or pre-payment of certain existing borrowings. This step is expected to strengthen the company’s balance sheet by reducing its debt burden and potentially lowering interest expenses, thereby improving financial leverage. The remaining funds are designated for general corporate purposes, providing the company with crucial flexibility to address various strategic needs, including potential future expansions, unforeseen operational contingencies, or investments in technology, ensuring agility in a dynamic market environment.

Core Strengths Driving SAWALIYA FOOD PRODUCTS’ Growth

Sawaliya Food Products possesses several intrinsic strengths that underpin its market position and potential for continued growth in the competitive food processing industry:

• Strategically Located, Integrated Manufacturing Facility: The company benefits from a modern, well-positioned, and integrated manufacturing facility. This strategic location minimizes logistical costs, enhances operational efficiency, and supports seamless scalability to meet increasing demand. The integrated nature of the facility also optimizes the entire supply chain, from efficient raw material sourcing to timely finished product delivery, ensuring consistency and reliability.
• Premier Customer Base Anchoring Stable Operations: Sawaliya Food Products has successfully cultivated and maintained strong relationships with a premier customer base, which includes leading players in the branded packaged food sector. This established client portfolio contributes significantly to stable operations and ensures a steady stream of recurring revenue, providing a robust and predictable financial foundation for the business.
• Diversified and Customizable Product Portfolio: The company offers a comprehensive and diverse range of dehydrated vegetable products, including carrots, cabbage, and string beans. This portfolio is highly customizable, allowing Sawaliya Food Products to tailor products to meet the precise specifications and unique requirements of its clients. This flexibility caters effectively to the high-demand segments within the FMCG industry, enabling the company to capture varied market opportunities and adapt to evolving consumer preferences.
• Robust Quality Assurance and Compliance: With a dedicated in-house quality division and strict adherence to external FSSAI-approved testing standards, Sawaliya Food Products guarantees consistently high product quality, safety, and nutritional integrity. This unwavering commitment to stringent quality control not only builds immense customer trust but also ensures full compliance with national and international regulatory mandates, which is paramount in the food industry.
• Consistent Financial Performance: The company has demonstrated a strong and consistent growth trajectory in both revenue and profitability over recent periods. This positive financial performance is indicative of effective management strategies, robust market demand for its specialized products, and efficient operational execution. Such consistent growth makes Sawaliya Food Products an attractive prospect for investors seeking a company with a proven track record of financial stability and expansion.

Assessing the Risks: SAWALIYA FOOD PRODUCTS IPO

Prospective investors should carefully consider certain risk factors associated with an investment in Sawaliya Food Products:

• Revenue Concentration: A significant risk factor for the company is its potential revenue concentration due to substantial dependence on a few major customers. Should any of these key customers significantly reduce their orders or shift their procurement, it could lead to an adverse impact on the company’s sales volumes, operational stability, and overall financial performance.
• Geographical Reliance: The business exhibits a high reliance on the states of Madhya Pradesh (MP) and Maharashtra for both its operational facilities and the sourcing of critical agricultural raw materials. This geographical concentration makes the business inherently vulnerable to region-specific disruptions, including adverse weather conditions, natural calamities, changes in state-level agricultural policies, or local economic downturns, all of which could severely affect raw material supply, production, and distribution.
• Competitive and Evolving Market: The dehydrated food products market is characterized by intense competition and rapid evolution. Sawaliya Food Products operates within this dynamic landscape, facing challenges from both established industry players and new entrants. Furthermore, the company is subject to a complex and ever-changing regulatory environment in the food processing industry, where new compliance burdens or revised standards could impact operational costs and market access.
• Recent Negative Cash Flows: The presence of recent negative cash flows from operating activities is a notable concern. While common for growing companies investing heavily, sustained negative cash flows could potentially affect the company’s ability to fund its ongoing operations, finance growth initiatives, or service its debt obligations without resorting to additional external financing, thus impacting its liquidity and stability.
• Working Capital Pressures and Seasonal Vulnerability: The business is inherently subject to working capital pressures due to the nature of its operations and its significant reliance on agricultural raw materials. This exposes the company to seasonal demand shifts and considerable price volatility in key inputs, which can directly impact procurement costs and profitability margins. Effective management of working capital is crucial to mitigate these financial pressures and ensure smooth operations throughout the year.

SAWALIYA FOOD PRODUCTS IPO: Live Subscription Status

Subscription statistics based on the latest available information as of 5:00 PM on August 08, 2025:

*GMP figures are unofficial and may vary; exchange data is more reliable.

Participating in the SAWALIYA FOOD PRODUCTS IPO

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.