Sona Machinery IPO: Check Out Price Band, Issue Size & More

Sona Machinery opened its initial public offering on March 5, 2024, and will close the issue on March 7, 2024. The company will issue up to 3,624,000 equity shares. It has a face value of Rs 10 per share through the IPO. NSE Emerge will list the equity shares at a floor price of Rs 136 and a cap price of Rs 143.

About the Company

The company specializes in manufacturing technology equipment for complete rice mill project set-ups and the production of equipment used in cleaning and processing various grains such as pulses, wheat, sesame, millet, corn, seeds, and more. Sona Machinery offers a comprehensive range of services, including engineering, installation, supervision, and machine commissioning, providing a complete solution for the milling sector, according to the company website.

Price Band

Sona Machinery has set the IPO price band for its shares at Rs 136 to Rs 143 per share.

Also read: JG Chemicals IPO: Top Things to Know Before Subscribing to The Issue

Issue Size

Investors have the option to bid for a minimum of 1000 shares and in multiples of that quantity.

IPO Reserve Portion

• Qualified Institutional Buyers (QIBs): 50% of the issue
• Non-Institutional Investors: Not less than 15% of the total issue
• Retail Buyers: Minimum of 35% of the equity shares on offer

Objectives of the Issue

The company stated that it will allocate the funds raised from the IPO towards capital expenditure for establishing a new manufacturing unit in Ghaziabad and repaying outstanding lines of credit utilized for machinery acquisition. The company will utilize any remaining proceeds for general corporate purposes.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.