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09 Nov 2024
Sona Machinery Limited IPO
Sona Machinery Ltd. is an ISO 9001:2015 Certified Original Equipment Manufacturer having a sprawling 10000 sq. mts. facility with over 350+ skilled professionals delivering customized solutions to more than 10000+ satisfied customers in India & Globally. Its product list includes a complete range of cutting-edge technology equipment for Complete Rice Mill Project Set-ups as well as manufacturing equipment for cleaning, processing various Grains like Pulses, Wheat, Sesame, Millet, Corn, Seeds, etc. in desired capacities. Sona Machinery is among the “Top 10 Industrial Service Providers” of 2022 as per Industry Outlook and is Awarded as “Prestigious Brands Asia 2023” in Agri-Machinery Manufacturing category by Barc Asia & Global Business Symposium. Sona Machinery IPO is a book-built issue of Rs 51.82 crores.
The issue is entirely a fresh issue of 36.24 lakh shares. Sona Machinery IPO price band is set at ₹136 to ₹143 per share. The minimum lot size for an application is 1000 Shares. Hem Securities Limited is the book running lead manager of the Sona Machinery IPO, while Maashitla Securities Private Limited is the registrar for the issue. The market maker for Sona Machinery IPO is Hem Finlease.
Sona Machinery Limited IPO Overview
| Detail | Description |
|---|---|
| IPO Date | March 5, 2024 to March 7, 2024 |
| Listing Date | March 13, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹136 to ₹143 per share |
| Lot Size | 1000 Shares |
| Total Issue Size | 3,624,000 shares (aggregating up to ₹51.82 Cr) |
| Fresh Issue | 3,624,000 shares (aggregating up to ₹51.82 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 10,100,000 |
| Share holding post issue | 13,724,000 |
| Market Maker portion | 182,000 shares Hem Finlease |
Sona Machinery IPO Timeline (Tentative Schedule)
| Detail | Description |
|---|---|
| IPO Open Date | Tuesday, March 5, 2024 |
| IPO Close Date | Thursday, March 7, 2024 |
| Basis of Allotment | Monday, March 11, 2024 |
| Initiation of Refunds | Tuesday, March 12, 2024 |
| Credit of Shares to Demat | Tuesday, March 12, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 7, 2024 |
Sona Machinery IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | ₹143,000 |
| Retail (Max) | 1 | 1000 | ₹143,000 |
| HNI (Min) | 2 | 2,000 | ₹286,000 |
Sona Machinery IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 1,032,000 (28.48%) |
| Market Maker Shares Offered | 182,000 (5.02%) |
| QIB Shares Offered | 688,000 (18.98%) |
| NII (HNI) Shares Offered | 517,000 (14.27%) |
| Retail Shares Offered | 1,205,000 (33.25%) |
| Total Shares Offered | 3,624,000 (100%) |
Sona Machinery IPO Promoter Holding
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 73.59% |
Sona Machinery IPO Anchor Investors Details
| Bid Date | March 4, 2024 |
| Shares Offered | 1,032,000 |
| Anchor Portion Size (In Cr.) | 14.76 |
| Anchor lock-in period end date for 50% shares (30 Days) | April 10, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | June 9, 2024 |
Company & Financials
Sona Machinery Ltd. (SML) is a diversified agro-processing equipment manufacturer, manufacturing equipment for the processing of rice, pulses, wheat, spices, Barnyard Millet etc. Its product portfolio includes Grains Pre-Cleaner machines, Rotary Drum Cleaner, Vibro Classifiers, Stone Separator Machines, Paddy De-Husker, Husk Aspirator, Rice Thick/Thin Grader, Rice Whitener, Silky Polisher, Multi Grader, Length Grader, Belt Conveyor, Bucket Elevator etc. along with the complete projects for rice mills and ethanol distilleries. As on the date of this Red Herring Prospectus, it is manufacturing and supplying agro-processing equipment under various categories like cleaning, grading, blending, material handling etc. Currently, it has a manufacturing unit situated at Ghaziabad, Uttar-Pradesh with a total area of approx. 52,205 sq. ft. and a warehouse for storage of material and finished goods. As of September 30, 2023, it had 390 employees on its payroll.
Sona Machinery Limited Financial Information
| Period Ended | 30 Nov 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 | ||||||||||||||||||||||||||||||||||||
| Assets | 4,211.30 | 2,858.19 | 1,516.58 | 732.21 | ||||||||||||||||||||||||||||||||||||
| Revenue | 6,288.11 | 8,118.06 | 4,453.07 | 606.33 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 647.82 | 768.36 | 326.47 | 27.81 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 1,780.16 | 1,132.34 | 363.98 | 37.51 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 770.16 | 1,122.34 | 353.98 | 27.51 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 112.94 | 252.60 | 236.61 | |||||||||||||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 44.49% |
| ROCE | 46.61% |
| Debt/Equity | 0.06 |
| RoNW | 36.39% |
| P/BV | 8.11 |
| PAT Margin (%) | 10.32 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 7.61 | 7.08 |
| P/E (x) | 18.8 | 20.2 |
Objectives of Sona Machinery IPO
The company intends to utilize the net proceeds from the issue towards the funding of the following objectives:
- 1. Funding the Capital Expenditure requirements of the company towards setting up a new manufacturing unit at Ghaziabad.
- 2. Repayment of the outstanding amount of the Letter of Credit availed by the company for the purchase of machinery.
- 3. General Corporate Purpose.
Sona Machinery IPO Review
The company is in agro processing equipment manufacturing, marketing and related service provider. It marked steady growth in its top and bottom lines for the reported periods. However, based on FY24 annualized super earnings, the issue appears fully priced. Well-informed investors may park moderate funds for the medium to long term rewards.
FAQs for Sona Machinery IPO
-
What Is The Size Of The Sona Machinery IPO?
Sona Machinery Limited’s IPO consists of a fresh issue of 36,24,000 shares aggregating to INR 51.82 crores. The company plans to utilize net proceeds to establish a new manufacturing unit at Ghaziabad and repay existing borrowing.
-
What is Sona Machinery Limited's IPO?
Sona Machinery Limited IPO is a fresh issue of up to 3,624,000 equity shares. The IPO date will be on March 5, 2024.
-
When will Sona Machinery Limited's IPO be allotted?
The Basis of Allotment will happen on Monday, March 11, 2024.
-
When will Sona Machinery Limited list on exchanges?
Sona Machinery Ltd IPO will be listed on the NSE Emerge on Wednesday, March 13, 2024.
-
What minimum lot size can retail investors subscribe to?
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 1000 shares.
Sona Machinery IPO Subscription Status
Category
Subscription (times)
QIB
129.72
NII
554.42
Retail
235.06
Total
273.50
RHP:
RHP of Sona Machinery Limited IPO
DRHP:
DRHP of Sona Machinery Limited IPO
Anchor Investor Link:
Anchor Investor Link of Sona Machinery Limited IPO
-
What Is The Size Of The Sona Machinery IPO?
Sona Machinery Limited’s IPO consists of a fresh issue of 36,24,000 shares aggregating to INR 51.82 crores. The company plans to utilize net proceeds to establish a new manufacturing unit at Ghaziabad and repay existing borrowing.
-
What is Sona Machinery Limited's IPO?
Sona Machinery Limited IPO is a fresh issue of up to 3,624,000 equity shares. The IPO date will be on March 5, 2024.
-
When will Sona Machinery Limited's IPO be allotted?
The Basis of Allotment will happen on Monday, March 11, 2024.
-
When will Sona Machinery Limited list on exchanges?
Sona Machinery Ltd IPO will be listed on the NSE Emerge on Wednesday, March 13, 2024.
-
What minimum lot size can retail investors subscribe to?
The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 1000 shares.
Sona Machinery IPO Subscription Status
| Category | Subscription (times) |
|---|---|
| QIB | 129.72 |
| NII | 554.42 |
| Retail | 235.06 |
| Total | 273.50 |
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