Sona Machinery Ltd set to launch IPO on NSE Emerge
Dec 04, 2023
New Delhi [India], December 4 : Sona Machinery Ltd has taken a stride towards capital market entry by filing its Draft Red Herring Prospectus (DRHP) with NSE Emerge, the small and medium-sized enterprises (SME) platform of the National Stock Exchange of India (NSE).
As per a press release, the Initial public offering (IPO), consisting of a 'fresh issue' of up to 3,624,000 equity shares with a face value of Rs 10 per share, positions Sona Machinery to leverage the robust SME platform for enhanced market access and potential growth.
Hem Securities Limited, serving as the sole book-running manager, will navigate the proposed offering, while Maa Shitla Securities Pvt. Ltd assumes the role of registrar to the issue.
Sona Machinery's Draft Red Herring Prospectus (DRHP) elucidates the strategic allocation of the capital raised during the IPO, primarily directed towards establishing a new manufacturing unit.
This expansion initiative aims to meet the escalating demand for the company's cutting-edge grain-processing equipment domestically and globally.
As the company fortifies its market presence, it also seeks to optimize its financial position by reducing short-term and long-term obligations, aligning with the government's initiatives to bolster domestic manufacturing.
The agro-processing innovator, amidst the evolving landscape of India's manufacturing sector, anticipates capitalizing on favourable industry trends.
Sona Machinery is attuned to national goals, contributing to the GDP target of 25 per cent by 2025 through initiatives like SAMARTH Udyog Bharat 4.0 and the Ethanol Blended Petroleum (EBP) program.
In fiscal 2023, Sona Machinery achieved financial performance, reporting Revenue from operations of Rs 80.97 crores, marking a Compounded Annual Growth Rate (CAGR) of 266.11 per cent from fiscal 2021 to 2023.
Furthermore, the return on equity (RoE) and return on capital employed (RoCE) for fiscal 2023 were 102.3 per cent and 80.01 per cent, respectively.
Sona Machinery's IPO launch signifies its commitment to reshaping the agro-processing landscape and harnessing growth opportunities on the capital market.
