Saroja Pharma Industries India IPO has received a decent response from investors on its second day of bidding, September 1. The participants bought 21.76 lakh shares in the IPO, higher by 2.01 times compared to the offer size of 10.84 lakh shares.
Retail investors lent good support to the IPO and subscribed for 18.81 lakh shares, which was 3.65 times their reserved portion, while the part set aside for high networth individuals (HNIs) was subscribed by 57 percent.
The 10.84-lakh shares public issue of the pharmaceutical products trader was opened for subscription on August 31.
The total fundraising via initial public offering, which comprises only a fresh issue by the company, is going to be Rs 9.11 crore at a price of Rs 84 per share. The IPO does not have an offer-for-sale portion.
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The public issue included the reservation of 54,400 equity shares for the market maker. And of the remaining 10,30,400 shares are reserved for retail investors and HNIs individuals with a 50:50 proportion i.e. 5,15,200 shares each to both categories.
The Mumbai-based trader and third-party distributor of pharmaceutical finished formulations & products will utilise fresh issue proceeds mainly for setting up an API (active pharmaceutical ingredient) manufacturing unit and repaying debts.
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The maiden public issue will close on September 5 and the listing of equity shares on the NSE SME Emerge will take place on September 31, as per the IPO schedule.
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