Sona Machinery IPO oversubscribed 13 times on first day, check details

Sona Machinery IPO opened to a good response from the investors on Tuesday, March 5, as the public issue was subscribed more than 13 times on the first day.

According to the NSE data, the initial public offer (IPO) of the agro-processing original equipment manufacturer received bids for a total of 3,18,15,000 shares against 24,10,000 shares available for public subscription.

The public issue was subscribed 18.88 times by retail investors, 6.71 times by Qualified Institutional Buyers (QIBs) and 8.59 times by Non-Institutional Investors (NIIs).

Sona Machinery IPO, a book-built issue of ₹51.82 crore, is a fresh issue of up to 36.24 lakh equity shares of a face value of ₹10 per share.

The company has reserved 18.98% (6,88,000 shares) of the net issue size for QIB segment and 14.27% (5,17,000 shares) for NIIs. The retail portion comprises 12,05,000 shares, or 33.25%, of the offer size.

The public offer of 36.24 lakh equity shares also includes the market maker portion of 1.82 lakh shares and anchor allocation of 10.32 lakh shares.

The company raised ₹14.76 crore from anchor investors on Monday, March 4, 2024.

Sona Machinery IPO price band, lot size and other details

The company has fixed the price band for its IPO ₹136-143 per share and the minimum lot size for bidding is set at 1,000 shares and in multiples thereafter. The minimum amount of investment required for retail investors is ₹1,43,000. The minimum lot size investment for HNIs is 2 lots (2,000 shares), amounting to ₹286,000.

Sona Machinery IPO allotment and listing dates

Sona Machinery IPO share allotment will be finalised on Monday, March 11. Shares of Sona Machinery will be listed on NSE SME platform, Emerge, on March 13, 2024.

Post-finalisation of allotment, subscribers can check their allotment status on the website of the registrar by following specified steps.

On March 12, the company will initiate refunds for those who do not receive shares and simultaneously credit shares to the Demat accounts of successful bidders.

Vasu Naren and Shweta Baisla are the promoters of Sona Machinery Limited. Promoters' stake is 100% and post-IPO, it will reduce to 73.59%.

Hem Securities Ltd is the book-running lead manager of the IPO. Mashitala Securities Pvt Ltd is the registrar to the issue. The market maker for the IPO is Hem Finlease.

IPO objective

Sona Machinery's IPO proceeds will be utilised for buying new machinery, setting up new manufacturing units, repaying debt and general corporate purposes.

About Sona Machinery Limited

Set up in 2019, Sona Machinery is into the production of agricultural machinery for processing rice, pulses, wheat, spices and Barnyard Millet. Among the major products of the company are - grains pre-cleaner machines, rotary drum cleaner, vibro classifiers, stone separator machines, paddy de-husker and husk aspirator.

Sona Machinery exports its products to countries like Nigeria, Bangladesh, Kenya and Nepal.

The company's service offerings comprise engineering, installation, supervision and machine commissioning. The company provides a comprehensive solution for the milling sector, from unloading and milling grains to pre-crushing for ethanol distilleries. It also provides services from unloading paddy to packing rice for the rice milling industry.