Swastika Infra’s Rs 161-crore IPO concluded with a 2.09 times subscription on the final day, driven by non-institutional and retail participation. The power EPC company plans to use Rs 90 crore for working capital. Shares are set to list on September 30, with early unofficial grey market data indicating a modest 5% premium.
The initial public offering (IPO) of Swastika Infra closed on September 25 with an overall subscription of 2.09 times. Data from the National Stock Exchange showed that investors placed bids for 13.2 million shares, against an offer size of approximately 6.3 million shares.
Non-institutional investors were the primary drivers of this demand, subscribing 3.31 times to their reserved quota. Retail investors also showed steady interest, with their portion subscribed 2.19 times. The company, which specializes in engineering, procurement, and construction (EPC) services for power transmission and distribution projects, priced its shares in the range of Rs 175-185.
Strategic Use of Capital
Swastika Infra intends to use Rs 90 crore from the Rs 161-crore issue to meet its incremental working capital needs. For power EPC companies, managing working capital is essential because these projects often have long payment cycles from clients. Investors should monitor how effectively the company manages this cash as it executes its order book, as high working capital requirements can sometimes pressure cash flow and margins if project payments are delayed.
Before the public offering, the company raised Rs 48.26 crore from six anchor investors, including firms like Shine Star Build-Cap, Minerva Ventures, and Longthrive Capital VCC. This anchor participation suggests some institutional interest in the company’s business model ahead of its market debut.
Market Outlook and Listing
Shares of Swastika Infra are scheduled to list on the BSE and NSE on September 30. Early unofficial grey market trends point to a modest premium of around 5%, or Rs 9 per share. While this indicates neutral to positive sentiment, it is important to remember that grey market premiums are not official and often fluctuate based on speculative activity rather than company fundamentals.
Moving forward, the primary monitorable for shareholders will be the company’s ability to execute its existing projects within the estimated timelines and costs. As an EPC firm, Swastika Infra faces typical industry risks, including potential delays in project completion, fluctuations in raw material prices, and intense competition in the power infrastructure sector. Investors should track future quarterly earnings to understand how the infusion of capital affects the company's interest burden and overall profitability.