Sona Machinery IPO will open for subscription from 05 March 2024. The company aims for an issue size of ₹51.82 Cr through this IPO.
Company Overview
| Full name | Sona Machinery Limited |
| Sector | Machinery |
| Industry | Manufacturing |
| Company Website | https://www.sonamachinery.com/ |
About Company
Sona Machinery stands as a multifaceted agro-processing equipment manufacturer, producing a wide array of machinery tailored for rice, pulses, wheat, spices, and even Barnyard Millet processing. The company offers a diverse range of products, including 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 Conveyer, Bucket Elevator, and more.
The services provided encompass engineering, erection, supervision, and machine commissioning, offering a comprehensive end-to-end solution for the milling section. This includes grain unloading and milling solutions up to pre-masher for ethanol distilleries, as well as paddy unloading to rice packaging for rice mill industries. Sona Machinery has exported a small portion of its products to countries such as Nigeria, Bangladesh, Kenya, Nepal, etc., generating approximately 0.60%, 3.12%, 2.39%, and 2.15% of its total revenue from export sales for the period ending 31 August 2023 and FY 2023, 2022 and 2021 respectively. As of 30 September 2023, the company had a workforce of over 390 employees, comprising semi-skilled workers at different levels within the organization.
The Objectives of the Issue
- Funding the Capital Expenditure requirements of the company towards setting up a new manufacturing unit at Ghaziabad.
- Repayment of the outstanding amount of the Letter of Credit availed by the company for the purchase of machinery.
- General Corporate Purpose
Sona Machinery IPO Timetable
| IPO Opening date | 05 March 2024 |
| IPO Closing | 07 March 2024 |
| Basis of Allotment | 11 March 2024 |
| Initiation Refund | 12 March 2024 |
| Credit to Demat Account | 12 March 2024 |
| Listing Date | 13 March 2024 |
Sona Machinery IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹51.82 Cr – 3,624,000 shares |
| Fresh Issue | ₹51.82 Cr – 3,624,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹136 to ₹143 per share |
| Lot size | 1000 Sahers |
| Market Maker portion | 182,000 shares |
| Shareholding pre-issue | 10,100,000 |
| Shareholding post-issue | 13,724,000 |
| Listing Exchange | NSE SME |
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 Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Sona Machinery Financial Performance
| FY 2021 | FY 2022 | FY 2023 | 5M FY 2024 | |
| Revenue | 6.04 | 44.52 | 80.97 | 27.04 |
| Expenses | 5.75 | 39.91 | 70.56 | 24.56 |
| Net income | 0.28 | 3.30 | 7.71 | 1.88 |
Sona Machinery Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 0.28 | 3.27 | 7.63 |
| PE ratio | – | – | 17.82 – 18.74 |
| RONW (%) | 74.42 | 89.69 | 67.69 |
| NAV | 0.38 | 3.64 | 11.28 |
| ROCE (%) | 81.67 | 77.64 | 80.01 |
| EBITDA (%) | 6.69 | 11.93 | 14.41 |
| Debt/Equity | 0.64 | 0.22 | 0.10 |
Company Promoters
- Mr. Vasu Naren
- Ms. Shweta Baisla
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
Sona Machinery IPO Lead Manager(s)
HEM SECURITIES LIMITED
904, A Wing, Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Lower Parel, Mumbai-400013, India
Phone: +91- 022- 49060000
Email: ib@hemsecurities.com
Website: www.hemsecurities.com
Sona Machinery Registrar
MAASHITLA SECURITIES PRIVATE LIMITED
451, Krishna Apra Business Square,
Netaji Subhash Place, Pitampura, Delhi – 110034
Phone: 011-45121795
Email: investor.ipo@maashitla.com
Website: www.maashitla.com
Sona Machinery Contact Details
SONA MACHINERY LIMITED
F-16 & C-1, Sec A-3, Tronica City, GZB,
Loni, Ghaziabad-201103, Uttar Pradesh
Phone: +91-8448984368
E-mail: cs@sonamachinery.com
Website: www.sonamachinery.com
Sona Machinery IPO Allotment Status
Sona Machinery IPO allotment status will be available on the Maashitla Securities website. Click on Maashitla Securities IPO weblink to get allotment status.
Final thoughts
Sona Machinery IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
