Swasth Foodtech has Rs 149.35 lakh IPO proceeds unspent

Swasth Foodtech India Limited had Rs 149.35 lakh of unutilised IPO proceeds on September 30, 2026, from total proceeds of Rs 14.9234 crore. The largest balance was Rs 123.98 lakh allocated to a packing line at its existing manufacturing unit, which management said would be utilised in future years.

How much of Swasth Foodtech's IPO proceeds remained unspent?

Swasth Foodtech had used Rs 13.4299 crore of its Rs 14.9234 crore IPO proceeds, leaving Rs 149.35 lakh unutilised as of September 30, 2026. The company raised the amount through an offer of 15,87,600 equity shares of face value Rs 10 each at Rs 94 a share, including securities premium of Rs 84 a share.

The unspent balance was split between Rs 123.98 lakh for the packing line and Rs 25.37 lakh for issue-related expenses. There was no unutilised balance in the Rs 7.50 crore allocation for working-capital requirements or the Rs 2.20 crore allocation for general corporate purposes.

Swasth Foodtech completed the IPO through the BSE platform and listed its equity shares on February 28, 2025. The utilisation position accompanied the unaudited financial results for the half year ended September 30, 2026, while a certificate based on examination of books and documents reported the same Rs 149.35 lakh balance.

Which Swasth Foodtech IPO objective is still incomplete?

The incomplete operating objective is the packing line at Swasth Foodtech's existing manufacturing unit, where Rs 205.89 lakh had been used from an original allocation of Rs 329.87 lakh by September 30, 2026. The remaining Rs 123.98 lakh was the largest unutilised amount among the four IPO objectives.

The utilisation certificate records no modified objective and no deviation or variation for the packing-line allocation. Its remarks state that, according to management, the Rs 123.98 lakh balance will be utilised in future years. The filing gives no project completion date, equipment specification, vendor name or annual spending schedule.

The packing-line position differs from the two fully deployed operating categories. Swasth Foodtech had used all Rs 7.50 crore earmarked for working capital and all Rs 2.20 crore for general corporate purposes by September 30, 2026, leaving the manufacturing project as the principal outstanding use of IPO funds.

How did Swasth Foodtech allocate its IPO proceeds?

Swasth Foodtech allocated the largest portion of its Rs 14.9234 crore IPO proceeds, Rs 7.50 crore, to working-capital requirements, and reported full utilisation by September 30, 2026. The Rs 329.87 lakh packing-line allocation was the second-largest operating use, with Rs 205.89 lakh spent.

General corporate purposes accounted for Rs 2.20 crore and were fully used, while issue-related expenses were allocated Rs 1.9247 crore and had Rs 25.37 lakh remaining. The filing does not explain the timing or nature of payments still due under the issue-expense allocation.

What do Swasth Foodtech's latest results show?

Swasth Foodtech reported profit after tax of Rs 7.27 lakh for the half year ended September 30, 2026, compared with a loss after tax of Rs 2.6099 crore in the corresponding half year ended September 30, 2025. Revenue from operations declined to Rs 95.4528 crore from Rs 99.7308 crore over the same comparison.

Total revenue, including other income, was Rs 95.5122 crore in the September 2026 half year, while total expenses were Rs 95.4240 crore. In the September 2025 half year, total revenue was Rs 99.9062 crore and total expenses were Rs 103.0567 crore, producing a loss before tax of Rs 3.1505 crore versus profit before tax of Rs 8.82 lakh in the latest period.

Cost of material consumed was Rs 92.5934 crore in the latest half year, purchases of traded goods were Rs 4.2999 crore, and finance costs were Rs 85.66 lakh. On the balance sheet, capital work-in-progress was Rs 60.88 lakh on September 30, 2026, compared with Rs 2.72 lakh on March 31, 2026; the filing does not specifically connect that increase to the IPO-funded packing line.

What does Swasth Foodtech say about the unused packing-line funds?

Swasth Foodtech says the Rs 123.98 lakh balance for the packing line will be utilised in future years, according to management's statement in the September 30, 2026 utilisation certificate. This is the only disclosed timetable for deploying the unfinished project's remaining IPO funds.

The certificate shows “N/A” for a modified objective and for deviation or variation against the packing-line allocation. The financial-results filing defines deviation or variation as a change in the purpose of funds raised, a difference in actual use against the originally disclosed amount, or a change in contract terms referred to in the prospectus or offer document.

The Rs 25.37 lakh balance for issue-related expenses has no corresponding management explanation or expected payment date. The filing also does not disclose whether the Rs 149.35 lakh aggregate balance was held in a separate account, invested, or otherwise earmarked on September 30, 2026.

Conclusion

Swasth Foodtech had deployed most of its Rs 14.9234 crore IPO proceeds by September 30, 2026, with Rs 13.4299 crore utilised. Full use of Rs 7.50 crore for working capital and Rs 2.20 crore for general corporate purposes contrasts with the Rs 123.98 lakh still unspent on the Rs 329.87 lakh packing-line objective.

The next item to watch is progress in deploying the Rs 123.98 lakh packing-line balance, which management says will be used in future years without disclosing a completion date. Future filings may also clarify the remaining Rs 25.37 lakh of issue-related expenses and whether the manufacturing-unit project changes capital work-in-progress or property, plant and equipment.