The highly anticipated Indo Farm Equipment IPO is set to open for subscription on Tuesday, December 31, offering investors an opportunity to participate in a well-established player in the agricultural and construction equipment manufacturing sector. With a strong track record spanning over two decades, Indo Farm Equipment has cemented its reputation in the industry, and its IPO is garnering significant attention. Here are the key details you need to know about this offering.
Key Highlights of Indo Farm Equipment IPO
IPO Dates and Price Band
- Subscription Period: Opens on Tuesday, December 31, and closes on Thursday, January 2.
- Price Band: ₹204 to ₹215 per equity share of face value ₹10.
Lot Size
Investors can bid for a minimum of 69 equity shares and multiples of 69 shares thereafter.
Issue Structure
The IPO comprises:
- A fresh issue of up to 8.6 million equity shares.
- An offer for sale (OFS) of up to 3.5 million equity shares by the promoter selling shareholder, Ranbir Singh Khadwalia.
Objectives of the IPO
The company plans to use the net proceeds from the fresh issue for several strategic purposes:
- Enhancing Production Capacity: Establishing a dedicated facility to expand Pick & Carry Crane production, with an investment of ₹70 crore.
- Debt Reduction: Repaying or settling specific loans totaling ₹50 crore.
- NBFC Subsidiary Investment: Increasing capital in Barota Finance, its NBFC subsidiary, with ₹45 crore to support future requirements.
- General Corporate Purposes: Allocating remaining funds for operational needs.
Financial Performance
Indo Farm Equipment has demonstrated consistent profitability, underlining its operational strength. The total income and profit after tax (PAT) for recent periods are as follows:
- June 30, 2024: Income ₹755.38 million, PAT ₹24.54 million.
- March 31, 2024: Income ₹3,759.53 million, PAT ₹155.95 million.
- March 31, 2023: Income ₹3,718.18 million, PAT ₹153.72 million.
- March 31, 2022: Income ₹3,525.21 million, PAT ₹137.19 million.
Grey Market Premium (GMP) Insights
As of today, Indo Farm Equipment’s IPO GMP stands at ₹90, signaling robust demand in the grey market.
- Estimated Listing Price: Considering the upper IPO price band of ₹215 and the current GMP of ₹90, the expected listing price is ₹305, offering a 41.86% premium over the issue price.
- Trend Analysis: Over the past 18 sessions, GMP has been on an upward trajectory, with a maximum GMP of ₹90 recorded so far.
Peer Comparison
Indo Farm Equipment operates in a competitive market, with peers like Escorts Kubota Ltd (P/E 36.79) and Action Construction Equipment Ltd (P/E 47.42). These comparisons highlight Indo Farm’s relative valuation and growth potential.
Anchor Investors and Reservation Details
- Anchor Investors: Allocation for anchor investors is scheduled for Monday, December 30.
- Reservation Split:
- QIBs: 50% of the issue.
- NIIs: 15% of the issue.
- Retail Investors: 35% of the issue.
Listing Date and Allotment Schedule
- Allotment Date: Friday, January 3, 2025.
- Refunds Processing: Monday, January 6, 2025.
- Demat Credit: Monday, January 6, 2025.
- Listing Date: Tuesday, January 7, 2025, on BSE and NSE.
A Glimpse Into Indo Farm Equipment
With its extensive manufacturing capabilities—including induction furnaces, automatic molding lines, and state-of-the-art testing facilities—Indo Farm Equipment is well-positioned to capitalize on its diversified product portfolio. From tractors to pick-and-carry cranes, the company’s products are integral to agricultural and industrial sectors.
Investors eyeing Indo Farm Equipment’s IPO have much to consider, from its promising financials to its expanding market reach, as this Chandigarh-based firm looks set for a strong debut in the capital markets.
