Agro-processing equipment manufacturer Sona Machinery has garnered strong interest from across categories of investors as its public issue was subscribed 254.37 times on March 7, the final day of bidding.
The participants picked 65.93 crore equity shares during three days (March 5-7) against the IPO size of 25.92 lakh equity shares, as per the subscription data published by the NSE.
Non-institutional investors were at the forefront, buying 555 times the allocated quota, while retail investors picked 235 times the part set aside for them and qualified institutional buyers 129 times the reserved portion.
The Uttar Pradesh-based company that makes equipments for the processing of rice, pulses, wheat, spices, and barnyard millet launched the IPO to raise Rs 51.82 crore, which comprises only a fresh issue of 36.42 lakh equity shares.
It was a book-built issue with price band at Rs 136-143 per share.
Also read: JG Chemicals IPO closes with 27.8 times subscription, retail portion booked 17.3x
Sona Machinery will spend Rs 28.91 crore out of the issue proceeds for setting up of a new manufacturing unit at Ghaziabad, and Rs 2 crore for repaying the outstanding amount of the letter of credit. The remaining fresh issue money will be used for general corporate purpose.
The company will finalise the basis of allotment of IPO shares by March 11, and the equity shares will be credited to demat accounts of eligible investors by March 12.
Sona Machinery will make its debut on the NSE Emerge on March 13.
Also read: Gopal Snacks IPO fully subscribed on second day of bidding, with retail, HNIs support
Meanwhile, the Shree Karni Fabcom IPO was subscribed 47.26 times on the second day of bidding, as investors picked 6.3 crore equity shares against offer size of 13.39 lakh equity shares. The Rs 42.5-crore public issue will close on March 11.
The Rs 5.5-crore initial public offering of Koura Fine Diamond Jewelry was also opened for second day of bidding on March 7. It was booked 108.35 times, while the bidding for the fixed price issue will remain open till March 11.
The Pune E-Stock Broking IPO had a first day of subscription, with investors buying 10.46 times the offer size. The Rs 38-crore public issue will close on March 12, with a price band at Rs 78-83 per share.
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