Indo Farm Equipment IPO opens for subscription on Tuesday, December 31. Indo Farm Equipment is a well-established manufacturer of Tractors and Pick & Carry Cranes with over two decades of experience. The company also sells various agricultural equipment, including Harvester Combines, Rotavators, and other related spare parts and components, which collectively have minimal impact on the overall revenue of the business.
The company’s facilities feature induction furnaces, pneumatic molding machines, an automatic molding line, a sand plant, a fully equipped metallurgy and sand testing laboratory, as well as machining, gear, press, fabrication, paint, assembly, quality, and utility rooms.
Ranbir Singh Khadwalia and Sunita Saini are the promoters of the company.
As per red herring prospectus (RHP), the company’s listed peers are Escorts Kubota Ltd (with a P/E of 36.79), and Action Construction Equipment Ltd (with a P/E of 47.42).
The company has established itself as a profit-generating entity with a consistent record spanning over twenty years. For the periods ending June 30, 2024, and the financial years ending March 31 for 2024, 2023, and 2022, the firm reported a total income of ₹755.38 million, ₹3,759.53 million, ₹3,718.18 million, and ₹3,525.21 million, respectively.
Its profit after tax for these periods amounted to ₹24.54 million, ₹155.95 million, ₹153.72 million, and ₹137.19 million, respectively.
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Here are the 10 key things to know about Indo Farm Equipment IPO
Indo Farm Equipment IPO date: The issue opens for subscription on Tuesday, December 31, and closes on Thursday, January 2.
Indo Farm Equipment IPO price band: The issues’ price band has been fixed in the range of ₹204 to ₹215 per equity share of face value of ₹10.
Indo Farm Equipment IPO lot size: The issue’s lot size is 69 equity shares and in multiples of 69 equity shares thereafter.
Anchor investors: The allocation to anchor investors for Indo Farm Equipment IPO is scheduled to take place tomorrow (Monday, December 30).
Indo Farm Equipment IPO details: The IPO of the Chandigarh-based firm includes a new issue of as much as 8.6 million equity shares along with an offer for sale (OFS) of up to 3.5 million equity shares from Ranbir Singh Khadwalia, the Promoter Selling Shareholder.
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Indo Farm Equipment IPO objective: The company intends to use the net proceeds from the newly issued shares to establish a dedicated facility designed to enhance the production capacity of Pick & Carry Cranes ( ₹70 crore), to repay or settle a portion or all of specific loans acquired by the company ( ₹50 crore), to increase investment in its NBFC subsidiary (Barota Finance) to bolster its capital base for upcoming requirements ( ₹45 crore), and to allocate the remaining funds for general corporate purposes.
Indo Farm Equipment IPO listing date and allotment details: The allocation of shares in the Indo Farm Equipment IPO is set to be determined on Friday, January 3. The company plans to begin processing refunds on Monday, January 6, and shares will be credited to the demat accounts of allottees on the same day following the refunds. The shares of Indo Farm Equipment are expected to officially list on the BSE and NSE on Tuesday, January 7.
Lead Manager and Registrar of Indo Farm Equipment IPO : Aryaman Financial Services Ltd serves as the book running lead manager for the Indo Farm Equipment IPO, whereas Mas Services Ltd is the registrar handling the issue.
Indo Farm Equipment IPO reservation: The company has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Indo Farm Equipment IPO GMP today: Indo Farm Equipment IPO grey market premium is +90. This indicates Indo Farm Equipment share price were trading at a premium of ₹90 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Indo Farm Equipment share price was indicated at ₹305 apiece, which is 41.86% higher than the IPO price of ₹215.
Following the grey market activities over the past 18 sessions, today’s IPO GMP is showing an upward trend and anticipates a robust listing. The minimum GMP recorded is ₹0, whereas the maximum GMP is ₹90, according to experts from investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
