Sona Machinery lists with 13% discount on NSE SME platform

The of the company, which opened for on Tuesday, was subscribed over 254 times as on the final day. The issue received cumulative bids for 65.9 crore shares, against 25,92,000 shares on offer.

The portion of the issue got bids for 28.3 crore shares, while the non-institutional category (NII) category got bids for 28.7 crore shares. The quota for qualified institutional buyers (QIBs) got bids for 8.92 crore shares.

The IPO was entirely a fresh equity issue of 36.24 lakh shares and through the issue, the company raised Rs 52 crore.

Funds raised from the public offer will be used for funding capital expenditure towards setting up of a new manufacturing unit, repayment of debt and other general corporate purposes.

Sona Machinery is a diversified agro-processing equipment manufacturer, manufacturing equipment for the processing of rice, pulses, wheat, spices, Barnyard Millet etc.

Also Read:

Its product portfolio includes Grains Pre-Cleaner machines, Rotary Drum Cleaner, Vibro Classifiers, Stone Separator among others.

Currently, has a manufacturing unit at Ghaziabad, UP with a total area of 52,205 sq ft and a warehouse for storage of the material and finished goods.

The company's manufacturing facility is equipped with requisite infrastructure including machineries and other handling equipment to facilitate smooth manufacturing process.

India’s food processing sector is one of the largest in the world and its output is expected to reach $535 billion by 2025-26. The food processing sector in India has a quintessential role in linking Indian farmers to consumers in the domestic and international markets.

Hem Securities acted as the lead manager to the issue and Maashitla Securities was the registrar.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)