The Saroja Pharma Industries India IPO has seen a robust response from investors, with the subscription rate surpassing expectations on the second day of bidding, September 1. Investors eagerly snapped up 21.76 lakh shares, representing a demand of 2.01 times the offer size of 10.84 lakh shares.
Retail investors played a pivotal role in bolstering the IPO’s subscription numbers, subscribing for 18.81 lakh shares, an impressive 3.65 times their allocated portion. Meanwhile, high net worth individuals (HNIs) showed their interest with a 57 percent subscription rate.
The IPO, which features a 10.84-lakh share public issue, commenced its subscription period on August 31. This initial public offering consists solely of a fresh issue by the company and is priced at Rs 84 per share. Notably, there is no offer-for-sale portion in this IPO.
The successful subscription of this IPO is significant for Saroja Pharma Industries as it signifies investor confidence in the company’s future prospects and growth potential.
The IPO’s structure includes a reservation of 54,400 equity shares for the market maker, while the remaining 10,30,400 shares are allocated for retail investors and HNIs, with an equal split of 5,15,200 shares for each category.
Saroja Pharma Industries, a Mumbai-based pharmaceutical products trader and third-party distributor of pharmaceutical finished formulations and products, intends to utilize the proceeds from the fresh issue primarily to establish an API (active pharmaceutical ingredient) manufacturing unit and to repay existing debts.
Investors have until September 5 to participate in the maiden public issue, with the listing of equity shares scheduled to take place on the NSE SME Emerge on September 31, according to the IPO schedule.
In summary, the strong support from retail investors and the overall enthusiastic response to the Saroja Pharma Industries India IPO bodes well for the company’s future endeavors and underscores the confidence investors have in its growth trajectory.