Sona Machinery
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Mar 2024 – 07 Mar 2024
- Listing date
- 13 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹143 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹51.82 Cr
- Market cap at offer price
- ₹196 Cr
- Promoter holding
- 100.00% → 73.59% pre-issue → post-issue
- ISIN
- INE0Q6H01012
- Registrar
- Maashitla Securities Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Unit No.701, 7th floor, KLJ Tower, Plot No.B-5, Netaji Subhash Place, Maurya Enclave, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 10,32,000 | — | — |
| Market maker | 1,82,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹143
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,43,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,86,000 |
| S-HNI (max) | 6 | 6,000 | ₹8,58,000 |
| B-HNI (min) | 7 | 7,000 | ₹10,01,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.61 | 7.08 |
| P/E (×) | 18.79 | 20.20 |
| Price to book (×) | 8.11 | — |
| Market cap | — | ₹196 Cr |
Key performance indicators
- Return on net worth
- 36.39%
- ROCE
- 46.61%
- Debt / equity
- 0.06
- PAT margin
- 10.32%
- NAV per share
- ₹17.63
- Price to book
- 8.11
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sona Machinery
Sona Machinery Limited is a diversified agro-processing equipment manufacturer incorporated in February 2019 and converted to a public limited company in October 2023. The company manufactures equipment for processing rice, pulses, wheat, spices, and barnyard millet, including grains pre-cleaners, rotary drum cleaners, vibro classifiers, stone separators, paddy de-huskers, husk aspirators, rice graders, whiteners, polishers, and material handling equipment. The company also provides complete project solutions for rice mills and ethanol distilleries, including engineering, erection, supervision, and commissioning services. The company acquired fixed assets and stock from M/s Sona Foods India (a proprietorship concern operating since 2003) in January 2021 and has since expanded its operations significantly, achieving revenue from operations of ₹8,096.63 lakhs in FY 2022-23 and ₹6,275.28 lakhs for the eight-month period ended November 30, 2023, with approximately 98.87% from domestic markets and 1.13% from exports to countries including Nigeria, Bangladesh, Kenya, and Nepal.
Company Analysis
from RHPSona Machinery Limited manufactures diversified agro-processing equipment for grain, rice, pulse, wheat, and spice processing across food processing and ethanol distillery sectors.
Sona Machinery Limited is a diversified agro-processing equipment manufacturer incorporated in February 2019 and converted to a public limited company in October 2023. The company manufactures equipment for processing rice, pulses, wheat, spices, and barnyard millet, including grains pre-cleaners, rotary drum cleaners, vibro classifiers, stone separators, paddy de-huskers, husk aspirators, rice graders, whiteners, polishers, and material handling equipment. The company also provides complete project solutions for rice mills and ethanol distilleries, including engineering, erection, supervision, and commissioning services. The company acquired fixed assets and stock from M/s Sona Foods India (a proprietorship concern operating since 2003) in January 2021 and has since expanded its operations significantly, achieving revenue from operations of ₹8,096.63 lakhs in FY 2022-23 and ₹6,275.28 lakhs for the eight-month period ended November 30, 2023, with approximately 98.87% from domestic markets and 1.13% from exports to countries including Nigeria, Bangladesh, Kenya, and Nepal.
Objects of the Issue
- Funding the Capital Expenditure requirements of our company towards setting up of a new manufacturing unit at Ghaziabad. ₹2,891.25 lakhs p.64
- Repayment of the outstanding amount of the Letter of Credit availed by our company for purchase of machinery. ₹200.80 lakhs p.64
- General Corporate Purpose [●] p.64
Issue Structure
- Total Issue
- Upto ₹[●] Lakhs (upto 36,24,000 Equity Shares of face value ₹10 each)
- Fresh Issue
- Upto 36,24,000 Equity Shares aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] to ₹[●] per Equity Share (to be determined and advertised at least two working days prior to Bid/Issue Opening Date)
- Lot Size
- [●] (to be determined)
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures agro-processing equipment using a structured manufacturing process involving procurement of raw materials (mild steel, steel bars, plywood), sizing, machining, fabrication, surface finishing and painting, assembly, final quality control, and packing/dispatch. Revenue is generated from sales of finished equipment across multiple categories: material handling (29.9% of sales), milling machines (20.33%), cleaning machines (19.01%), grading machines (13.93%), aspiration machines (6.3%), and other products. The company sells primarily through a direct sales network backed by a sales team of 26 employees and provides after-sales services through a team of 25 customer service professionals. The company operates from a manufacturing facility of approximately 52,205 sq. ft. in Ghaziabad, Uttar Pradesh, and plans to expand capacity through a new manufacturing unit.
Business Segments
SWOT Analysis
- • Diversified product portfolio across multiple agro-processing equipment categories (cleaning, grading, material handling, milling)(p.93)
- • ISO 9001:2015 certification for Quality Management Systems and BIS certification for key products(p.93)
- • Geographic revenue diversification across 19+ states and union territories in India plus international markets(p.94)
- • Experienced management team with 8+ years of industry experience in milling equipment manufacturing(p.94)
- • Complete end-to-end solutions from engineering, erection, supervision to commissioning for rice mills and ethanol distilleries(p.92)
- • Very limited operating history of only 3+ years since starting operations in January 2021(p.92)
- • Heavy dependence on single manufacturing facility in Ghaziabad for all operations(p.24)
- • Unregistered trademark and logo in company name; trademark is currently in opposed status(p.26)
- • High inventory and trade receivables as percentage of current assets with history of bad debt write-offs(p.27)
- • Premises occupied on rental basis with risk of non-renewal or unfavorable terms(p.25)
- • No long-term supply agreements with raw material suppliers; exposed to price volatility(p.23)
- • India's food processing sector expected to reach $535 billion by 2025-26 with government support(p.88)
- • Planned expansion to new manufacturing facility in Ghaziabad to increase production capacity and introduce new products(p.95)
- • Government initiatives and schemes (PMKSY, PLI, PMFME) supporting food processing infrastructure and equipment manufacturing(p.89)
- • Growing ethanol production demand driven by government's Ethanol Blended Petrol program(p.86)
- • Scope to expand domestic presence in underserved states and increase international market penetration(p.94)
- • Highly seasonal nature of agriculture sector affecting demand for milling equipment(p.23)
- • Dependence on agricultural output and potential disruption from adverse weather including monsoon failures(p.23)
- • Intense competition from organized and unorganized players in agro-processing equipment industry(p.28)
- • Regulatory changes and compliance risks in environmental, labor, and manufacturing sectors(p.32)
- • Vulnerability to broader economic slowdown and reduced agricultural investment(p.37)
- • Risks from global supply chain disruptions and foreign exchange volatility for imported machinery(p.33)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vasu Naren | Promoter | 90.00% | 66.23% |
| Shweta Baisla | Promoter | 3.00% | 2.21% |
| Narender Kumar | Promoter Group | 7.00% | 5.15% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.