The initial public offering (IPO) of Swastika Infra, an EPC company specializing in power transmission and distribution (T&D) infrastructure projects, commenced bidding on Wednesday, September 23. Within the first two hours of its launch, the issue saw a 30% subscription, indicating early investor interest.
IPO Details and Subscription Status
Swastika Infra is offering its shares in a price band of Rs 175-185 apiece. Investors can apply for a minimum of 81 shares. The company plans to raise Rs 161 crore through this IPO, which includes a fresh share sale of Rs 129 crore and an offer-for-sale (OFS) of up to 1,750,000 equity shares.
By mid-day on September 23, retail investors had subscribed to 32% of their allocated portion, while non-institutional investors (NIIs) showed significant interest, booking 66% of their quota. The portion reserved for qualified institutional bidders (QIBs) had yet to see major movement.
Company Background and Financials
Incorporated in 2019 and based in Jaipur, Swastika Infra provides turnkey EPC solutions encompassing the supply, erection, installation, testing, and commissioning of power infrastructure. This includes projects involving power transformers, circuit breakers, and other electrical components.
For the six months ending September 30, 2025, the company reported a net profit of Rs 70.90 crore on revenue of Rs 1,594.30 crore. In the financial year 2024-25, Swastika Infra recorded a net profit of Rs 220.60 crore with a revenue of Rs 2,816.20 crore.
Brokerage Insights and Recommendations
- SBI Securities assigned a 'neutral' rating, noting the issue's valuation at an FY26 P/E multiple of 15.2 times post-issue, which it deemed reasonably priced.
- Religare Broking recommended 'subscribe for long-term', citing Swastika Infra's healthy order book, established relationships with government utilities, growing geographical presence, and an asset-light operational model.
- Arihant Capital Markets also issued a 'neutral' rating for long-term investors. While acknowledging the company's strong position to capitalize on India’s expanding power distribution infrastructure and government modernization schemes, they highlighted key operational risks such as customer concentration with state DISCOMs, persistent working capital intensity, and execution risks tied to public sector project timelines.
Ahead of its IPO, Swastika Infra successfully raised Rs 48.26 crore from six anchor investors, allocating 2,608,782 equity shares at Rs 185 apiece.
Allocation and Listing Details
The IPO reserves 50% of the issue for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. At current valuations, Swastika Infra is expected to command a market capitalization slightly over Rs 630 crore post-listing.
The grey market premium (GMP) for Swastika Infra was last reported at Rs 8-9, suggesting a potential listing gain of 4-5% for investors. Srujan Alpha Capital Advisors LLP and Phillip Capital (India) are the book-running lead managers, with MUFG Intime India serving as the registrar. Shares of the company are slated to list on both BSE and NSE on Wednesday, September 30.