The debut of Sona Machinery shares on the NSE SME market today was lackluster, with the share price opening at ₹125, marking a 12.59% decrease from the issue price of ₹143. However, despite this weak start, the share price of Sona Machinery saw a recovery of nearly 4% following its initial dip.
The IPO subscription window for Sona Machinery was open from Tuesday, March 5, to Thursday, March 7. The price band for the IPO was set between ₹136 to ₹143 per share, with a lot size consisting of 1,000 shares. Investors had the option to bid for a minimum of 1,000 shares and in multiples thereof.
On the third day of subscription, the Sona Machinery IPO witnessed an impressive subscription status of 273.50 times, with the retail portion oversubscribed by 235.06 times and non-institutional investors subscribing by 554.42 times, as per data from chittorgarh.com.
The Sona Machinery IPO, valued at ₹51.82 crore, comprises a fresh issue of 3,624,000 equity shares with a face value of ₹10 each. This offering consists solely of fresh shares, with no offer-for-sale component involved.
The proceeds from the IPO will be utilized by the company to fund various objectives, including capital expenses required for establishing a new manufacturing facility in Ghaziabad, repayment of the outstanding balance on the letter of credit obtained by the company for general corporate purposes, and the acquisition of machinery.
In terms of the grey market sentiment, the GMP (Grey Market Premium) for the Sona Machinery IPO has been trending lower, standing at ₹30 today. This suggests a tepid listing ahead.
Analysts from investorgain.com report that the lowest GMP observed is ₹25, while the highest is ₹115. The “grey market premium” serves as an indicator of investors’ willingness to pay more than the issue price for the shares.
