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Business News/ Markets / Ipo/  Sona Machinery IPO: Issue subscribed 273.50 times on Day 3, check GMP and other details

Sona Machinery IPO: Issue subscribed 273.50 times on Day 3, check GMP and other details

The Sona Machinery IPO was subscribed 273.50 times on the final day of bidding with NIIs' portion booked the highest among the three groups.

Sona Machinery IPO (PTI)Premium
Sona Machinery IPO (PTI)

Agro-processing original equipment manufacturer Sona Machinery initial public offerings (IPO) opened for subscription on March 5, 2024 and closed today (March 7, 2024). Sona Machinery IPO was subscribed over 273.50 times on the third and last day of bidding.

The small and medium enterprise (SME) IPO had raised 14.76 crore from eight anchor investors on Monday, March 4.

Also Read: Sona Machinery IPO opens on March 5, price band fixed at 136-143

Sona Machinery is a diversified agro-processing equipment manufacturer with an extensive product range and caters to setting-up of Complete Rice Mill Projects as well as processing of other grains like pulses, wheat, spices, millet, etc. 

Its state-of-the-art portfolio encompasses grains pre-cleaner machines, rotary drum cleaners, vibro classifiers, stone separator machines, paddy de-huskers, husk aspirators, rice thick/thin graders, rice whiteners, silky polishers, optical sorters, multi graders, length graders, belt conveyors, bucket elevators, etc. 

It also provides a full range of solutions for Ethanol Distilleries (Grain Based Distilleries – Unloading & Milling Sections) encompassing engineering, erection, supervision, and machine commissioning services. 

Sona Machinery IPO subscription status

Out of the total issue, a minimum of 5.08 per cent was reserved for market makers while the portion for Qualified Institutional Buyers (QIBs) will be capped at 50 per cent. The non-institutional (NII) portion will comprise not be less than 15 per cent of the net issue while the portion for retail buyers will comprise a minimum of 35 per cent of the equity shares on offer.

The Sona Machinery IPO was subscribed 273.50 times on the third and final day of bidding. The SME IPO received 65,91,28,000 applications against offered 24,10,000 shares, as per data on NSE.

The retail portion received 28,32,45,000 applications, NII and QIB recorded 28,66,34,000 and 8,92,49,000 applications on the third day of bidding.

On the first day, the retail category received 2,27,56,000 share applications, meanwhile, NII and QIB received 44,43,000 and 46,16,000 applications respectively.

Also read: RK Swamy IPO: Issue booked 6.01 times on Day 2 with retail support; check GMP, other details

Sona Machinery IPO details

The SME IPO is a book built issue of 51.82 crore and is entirely a fresh issue of 36.24 lakh shares. Sona Machinery IPO price band is set at 136 to 143 per share, with a face value of 10 per share. The minimum lot size for an application is 1,000 shares.

The equity shares issued as aforementioned will be listed on NSE Emerge, the SME platform of the NSE, with a floor price of 136 and a cap price of 143. 

Sona Machinery has outlined three key areas where the net proceeds from the proposed IPO will be utilized. Up to 55-58 per cent has been earmarked for the capital expenditure involved in setting up a new manufacturing unit at Ghaziabad, while around four per cent will be utilized for the repayment of outstanding lines of credit availed to purchase of machinery. 

Balance of the proceeds raised from the proposed IPO shall be utilized for Issue related expenses in relation to the issue and general corporate purposes.

Hem Securities Limited is the sole book-running lead manager for the proposed offering, while Maashitla Securities Pvt. Ltd is the registrar to the issue. 

Sona Machinery IPO GMP today

The shares of Sona Machinery IPO is available at a premium of 110 in the grey market. This means that the estimated listing price of the SME IPO is likely to be 253, which is 76.92 per cent higher than the IPO price of 143, as per data by investorgain.

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Published: 05 Mar 2024, 08:13 PM IST
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