Saroja Pharma Industries' IPO Received 77% Subscription on the First Day of Bidding

Saroja Pharma Industries India's initial public offering was oversubscribed by 77 percent on the first day of bidding on August 31, with offers for 8.35 lakh equity shares received against an offer size of 10.84 lakh shares. Retail investors have purchased 1.52 times the reserved amount, and high-net-worth people have bid 10% of the reserved portion. The Mumbai-based pharmaceutical products distributor intends to raise Rs 9.11 crore through a public offering of 10,84,800 equity shares. The offer consists only of a new issue by the corporation.

It has set aside 54,400 equity shares of the public issue for the market maker, and of the remaining 10,30,400 shares, half - 5,15,200 shares - are set aside for retail investors and the other half for high-net-worth people. It is a fixed-price offering that will close on September 5. The offer price per share is Rs 84. Saroja Pharma, which specialises in the trade and third-party distribution of pharmaceutical finished formulations and products, plans to use the funds from the offering to establish an API (active pharmaceutical ingredient) manufacturing unit (Rs 7.05 crore) and repay debts totaling Rs 1.75 crore. The remaining Rs 31.35 lakh will go towards issuing costs.