Indo Farm Equipment Ltd., a prominent name in agricultural machinery and crane manufacturing, is gearing up for its initial public offering (IPO) on December 31, 2024. The three-day subscription window will close on January 2, 2025. With a refined strategy and a downsized fresh issue, the company is set to attract investor interest with promising growth plans and strong industry roots.
IPO Structure and Key Details
- Fresh Issue: Reduced from 1.05 crore shares to 86 lakh shares.
- Offer for Sale (OFS): 35 lakh shares will be offloaded by promoter Ranbir Singh Khadwalia.
- Anchor Book: Launching a day prior, on December 30, 2024.
Use of IPO Proceeds
The proceeds from the fresh issue will be directed towards:
- Expanding Crane Manufacturing: Establishing a new unit for pick-and-carry cranes.
- Debt Reduction: Repayment or prepayment of borrowings, which currently stand at ₹247.3 crore as of the September quarter.
- Boosting NBFC Subsidiary: Investment in Barota Finance Ltd. to enhance its capital base.
- General Corporate Purposes: Strengthening operational capabilities and infrastructure.
Business Overview
With over two decades of industry experience, Indo Farm Equipment Ltd. is a leader in the manufacturing of:
- Tractors
- Pick-and-Carry Cranes
- Agricultural Equipment like Harvester Combines and Rotavators.
While agricultural machinery and related spares form a smaller portion of its revenue, the company’s primary revenue driver remains its core offerings of tractors and cranes.
Market Presence and Infrastructure
- Domestic Market: Indo Farm derives 93% of its sales from India, supported by a strong distribution network.
- International Market: A growing export presence in multiple countries.
- Manufacturing Strength: Advanced infrastructure with a captive foundry, machine shop, and dedicated assembly units.
IPO Manager and Registrar
- Lead Manager: Aryaman Financial Services Ltd.
- Registrar: Mas Services Ltd.
Investor Outlook
Indo Farm Equipment Ltd.’s IPO represents an opportunity to invest in a well-established company with a solid domestic footprint and expanding international ambitions. By focusing on crane manufacturing expansion and strengthening its NBFC operations, the company is positioning itself for future growth in both the industrial and agricultural sectors.
With the IPO set to hit the market soon, investors are closely watching the developments to seize the opportunity.
