Agro-processing growth is India makes us optimistic about our IPO: Sona Machinery’s Naren
Vasu Naren, Chairman & Managing Director, Sona Machinery Limited, says SMEs have fared quite well with their IPOs due to the interest of investors to opt for emerging and non-conventional businesses that are backed by strong fundamentals and established track record of consistent financial performance.
“They are perceived as having a lower risk on investments with a better performance, while giving good pricing and quality of offerings. Another crucial and deciding factor for SMEs is their proven business model, which is bundled with a clear understanding of their markets and customers, and a demonstrated ability to generate revenue with sustainable operations in the longer run,” he says.
Sona Machinery Limited, a Ghaziabad-based agro-processing original equipment manufacturer, recently announced the filing of its draft red herring prospectus (DRHP) with NSE Emerge, the SME platform of the National Stock Exchange (NSE).
The IPO comprises a fresh issue of up to 3,624,000 equity shares with a face value of Rs 10 on NSE Emerge.
The company is planning to file the IPO sometime in the next two months. It refused to discuss how much it was planning to raise.
Naren explains that the funds raised will be used to expand manufacturing operations, set up a facility and buy the ancillary equipment required for these. Some part of the capital raised will also go towards general corporate expenses.
“A policy focus and push from the government has led to growth in the food processing industry, especially for grains. Then there is also an ever-rising demand from customers for our products.
