Sona Machinery set to launch IPO on NSE emerge after approval

Sona Machinery Limited has received the green light from the National Stock Exchange (NSE) to proceed with its initial public offering (IPO). The IPO, slated to open on March 5 and close on March 7, is expected to be a significant milestone for the company as it seeks to raise capital for expansion and development initiatives. The IPO will consist of a fresh issue of up to 3,624,000 equity shares, each with a face value of Rs 10 per share.

These equity shares will be listed on NSE Emerge, the Small and Medium Enterprises (SME) platform of the NSE, with a price band ranging between Rs 136 and Rs 143 per share. Investors can bid for a minimum of 1,000 shares or multiples thereof, ensuring broad participation in the offering. Of the total issue, a minimum of 5.08 per cent will be reserved for market makers, while the portion for Qualified Institutional Buyers (QIBs) will be capped at 50 per cent.

Non-institutional investors will have access to at least 15 per cent of the net issue, and retail investors will be allocated a minimum of 35 per cent of the equity shares on offer. Hem Securities Limited has been appointed as the sole book-running lead manager for the IPO, overseeing the offering process, while Maashitla Securities Pvt. Ltd will serve as the registrar to the issue.
Sona Machinery has earmarked the net proceeds from the IPO for strategic purposes aimed at bolstering its growth trajectory.

Approximately 55-58 per cent of the funds will be allocated towards capital expenditure for the establishment of a new manufacturing unit in Ghaziabad. Additionally, around 4 per cent will be utilized for the repayment of outstanding lines of credit, with the remainder allocated for issue-related expenses and general corporate purposes. Founded with a vision to deliver agro-processing solutions, Sona Machinery boasts a diverse product portfolio catering to the needs of the agricultural sector. The company specializes in the setup of complete rice mill projects and offers a wide range of equipment for processing various grains, including pulses, wheat, spices, millet, and more. (ANI)