Stories
Sonaselection India Debuts at 3% Premium: Buy, Sell, or Hold?
- •Sonaselection India shares listed at a 3% premium on BSE and NSE, opening at Rs 102.21 on NSE and Rs 102 on BSE against an IPO price of Rs 99.
- •The company's market capitalization reached approximately Rs 579.65 crore after listing.
- •The Rs 141.57-crore IPO was subscribed 2.01 times, with retail investors subscribing 2.50 times and non-institutional investors 1.99 times.
- •Sonaselection India plans to use Rs 80 crore from IPO proceeds for debt repayment and Rs 50.61 crore for capital expenditure, including new machinery in Rajasthan.
- •An expert suggests allotted investors consider booking listing gains, while new investors should await price stabilization and quarterly results before long-term positions.
Key Questions Answered
Sonaselection India shares made a decent market debut on September 24, listing at a premium of around 3% over the IPO price on both the NSE and BSE. The stock opened at Rs 102.21 on the NSE, marking a 3.34% premium over the Rs 99 IPO price, and debuted at Rs 102 on the BSE.
The Rs 141.57-crore Sonaselection India IPO was subscribed 2.01 times overall during the three-day bidding period from September 17 to September 21. The retail investor portion saw a 2.50 times subscription, while the non-institutional investor category was subscribed 1.99 times.
Sonaselection India plans to allocate Rs 80 crore of the IPO proceeds toward the partial repayment or prepayment of its outstanding debt. Another Rs 50.61 crore is earmarked for capital expenditure to purchase plant and machinery at its Bhilwara facility, with the remaining funds used for general corporate purposes.
