The Indo Farm Equipment Ltd Initial Public Offering (IPO) has entered its final day, closing on January 2, 2025. As the bidding process wraps up, here’s a look at the subscription status, along with important IPO details.
Indo Farm Equipment Day 3 Subscription Status
As of January 2, 2025, the Indo Farm Equipment IPO has seen an overwhelming subscription of 87.97 times the total shares offered. Here’s how different investor categories fared:
- Non-Institutional Investors (NIIs): Subscribed 241.36 times their allotted portion, reflecting a strong demand from high-net-worth individuals and other non-institutional players.
- Retail Investors: Subscribed 56.64 times their reserved portion, indicating a strong interest from individual investors looking to be a part of the IPO.
- Qualified Institutional Buyers (QIBs): Subscribed 12.10 times, showcasing positive institutional backing.
Indo Farm Equipment IPO Day 2 Subscription Recap
As of the end of Day 2, January 1, 2025, the IPO had garnered a subscription of 54.50 times the total shares offered. The breakdown on Day 2 was as follows:
- Non-Institutional Investors (NIIs): Subscribed 131.78 times their portion.
- Retail Investors: Subscribed 65.59 times their portion.
- Qualified Institutional Buyers (QIBs): Subscribed 11.96 times.
Indo Farm Equipment IPO Details
- IPO Subscription Period: Opened on December 31, 2024, and closes today, January 2, 2025.
- Issue Details:
- Fresh Issue: 0.86 crore shares worth ₹184.90 crores.
- Offer for Sale: 0.35 crore shares worth ₹75.25 crores.
- Price Band: ₹204 to ₹215 per share.
- Lot Sizes and Investment Requirements:
- Retail Investors: Minimum lot size of 69 shares requiring an investment of ₹14,835.
- Non-Institutional Investors (NII): Minimum application size of 14 lots (966 shares), requiring ₹2,07,690.
- Institutional Investors (NII): Minimum application size of 68 lots (4,692 shares), requiring ₹10,08,780.
- Key Managers:
- Aryaman Financial Services Ltd – Book-running lead manager
- Mas Services Ltd – Registrar
Use of Proceeds
The funds raised through the Net Fresh Issue will be allocated for several key purposes:
- Setting up a new manufacturing unit to boost production capacity for pick-and-carry cranes.
- Repaying or partially pre-paying certain borrowings to reduce financial liabilities.
- Further investing in the NBFC subsidiary, Barota Finance Ltd., to strengthen its capital base.
- Covering general corporate purposes.
Indo Farm Equipment Business Overview
Indo Farm Equipment Ltd, established in 1994, is a renowned manufacturer of tractors, pick-and-carry cranes, and harvesting equipment. It operates under the brands Indo Farm and Indo Power, and exports its products to several countries, including Nepal, Syria, Sudan, Bangladesh, and Myanmar.
The company’s Baddi, Himachal Pradesh facility spans 127,840 square meters and houses an integrated foundry, machine shop, and assembly units. The plant has an annual production capacity of:
- 12,000 tractors (ranging from 16 HP to 110 HP)
- 1,280 pick-and-carry cranes (ranging from 9 to 30 tons)
To cater to growing demand, Indo Farm is expanding its crane production with a new facility, which will increase its annual production capacity by 3,600 cranes.
Financial Highlights
- Revenue: Increased by 1.21% from ₹370.76 crore in FY23 to ₹375.23 crore in FY24.
- Profit After Tax (PAT): Rose by 1.50%, from ₹15.37 crore in FY23 to ₹15.60 crore in FY24, indicating stable profitability.
Key Takeaways
With the IPO closing today, the strong subscription numbers across investor categories reflect investor confidence in Indo Farm Equipment Ltd. The company’s solid market presence in the tractor and crane manufacturing sector, along with strategic expansion plans, make it an attractive investment opportunity for those looking to capitalize on the growth potential in the Indian manufacturing sector. As the IPO proceeds to allotment and listing, investors will be keen to see how the stock performs once it begins trading on BSE and NSE.
Disclaimer:
This article is for informational purposes only and not investment advice. Investing in IPOs and stocks carries risks. Always do your own research or consult a financial advisor before making decisions. The publisher is not responsible for any financial losses.
