Sona Machinery IPO opens on March 5, price band fixed at ₹136-143

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National Stock Exchange (NSE) for its proposed fundraising through an initial public offering (IPO). The issue, which will open on March 5 and close on March 7, 2024, will see a fresh issue of up to 3,624,000 equity shares with a face value of ₹10 per share. 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.

Of the total issue, a minimum of 5.08% will be reserved for market makers while the portion for Qualified Institutional Buyers (QIBs) will be capped at 50%. The non-institutional portion will comprise not be less than 15% of the net issue while the portion for retail buyers will comprise a minimum of 35% of the equity shares on offer. Bids can be made for a minimum of 1,000 equity shares or in multiples thereof.

Hem Securities Limited is the sole book-running lead manager for the proposed offering, while Maashitla Securities Pvt. Ltd is the registrar of the issue. Sona Machinery has outlined three key areas where the net proceeds from the proposed IPO will be utilized.

Up to 55-58% has been earmarked for the capital expenditure involved in setting up a new manufacturing unit at Ghaziabad, while around 04% will be utilized for the repayment of outstanding lines of credit availed to purchase of machinery. The balance of the proceeds raised from the proposed IPO shall be utilized for Issue-related expenses about the issue and general corporate purposes. ● Scheduled to open on March 05 and close on March 07, 2024, the IPO includes a fresh issue of up to 3,624,000 equity shares with a face value of ₹10 per share ● The price band of the issue is set between a floor price of ₹136 and a cap price of ₹143 per equity share,