The initial public offering (IPO) of agricultural processing machinery original equipment manufacturer Sona Machinery opened for subscription on March 5, 2024 and closed today (March 7, 2024). Sona Machinery's IPO was subscribed over 273.50 times on the third and final day of bidding.
IPOs of small and medium-sized enterprises (SMEs) had increased ₹14.76 crore from eight anchor investors on Monday, March 4.
Also read: Sona Machinery's IPO will begin on March 5, with a fixed price range ₹136-143
Sona Machinery is a diversified agro-processing equipment manufacturer with an extensive range of products and is engaged in setting up complete rice milling projects as well as processing other grains such as pulses, wheat, spices, millets, etc.
The state-of-the-art portfolio includes grain pre-cleaning machines, rotary drum cleaners, vibratory classifiers, stone separators, rice hullers, husk vacuums, thick/thin rice sorters, rice brighteners, silk polishers, optical sorters, multigraders, length graders, belt conveyors, bucket elevators, etc.
In addition, the company offers a full range of solutions for ethanol distilleries (grain-based distilleries – unloading and milling areas), including engineering, assembly, monitoring and machine commissioning services.
Sona Machinery IPO Subscription Status
Of the total issue, at least 5.08 percent was reserved for market makers, while the share for qualified institutional buyers (QIBs) is limited to 50 percent. The non-institutional (NII) share will be at least 15 percent of the net issue, while the share for retail buyers will be at least 35 percent of the shares offered.
Sona Machinery's IPO was subscribed 273.50 times on the third and final day of bidding. According to NSE data, the SME IPO received 65,91,28,000 applications against 24,10,000 shares offered.
The retail section received 28,32,45,000 applications, NII and QIB received 28,66,34,000 and 8,92,49,000 applications on the third day of the advertisement.
On the first day, the retail category received 2,27,56,000 share applications while NII and QIB received 44,43,000 and 46,16,000 applications respectively.
Also Read: RK Swamy IPO: Issue booked 6.01 times on second day with retail support; Check GMP and other details
Sona Machinery IPO details
The SME IPO is a book edition by ₹51.82 Crore and is a pure fresh issue of 36.24 lakh shares. The price range for Sona Machinery's IPO is at ₹136 to ₹143 per share, with a par value of ₹10 per share. The minimum lot size for registration is 1,000 shares.
The shares issued as mentioned above will be listed on NSE Emerge, the SME platform of the NSE, with a floor price of ₹136 and a maximum price of ₹143.
Sona Machinery has outlined three key areas where the net proceeds from the proposed IPO will be used. Up to 55-58 percent is earmarked for capital expenditure for setting up a new manufacturing unit in Ghaziabad, while around four percent will be used for repayment of outstanding credit lines for purchase of machinery.
The balance of the proceeds from the proposed IPO shall be used for issuance-related expenses in connection with the offering and general corporate purposes.
Hem Securities Limited is the sole bookrunner for the proposed offering while Maashitla Securities Pvt. Ltd is the registrar for the issue.
Sona Machinery IPO GMP today
The shares of Sona Machinery IPO are available at a premium of ₹110 on the gray market. This means that the estimated stock price of the SME IPO is likely to be ₹253, which is 76.92 percent higher than the IPO price of ₹143, according to data from Investorgain.
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