The Indo Farm Equipment IPO is set to open for subscription on Tuesday, December 31, 2024, offering an exciting investment opportunity in the manufacturing sector. With over two decades of expertise, Indo Farm Equipment is a well-established player in producing tractors, Pick & Carry Cranes, and a range of agricultural equipment like Harvester Combines and Rotavators.
Here’s everything you need to know about the Indo Farm Equipment IPO.
Company Overview
Indo Farm Equipment boasts a strong legacy, with a comprehensive range of manufacturing capabilities that include:
- Induction furnaces
- Pneumatic molding machines
- Automatic molding lines
- Sand plants
- Fully equipped metallurgy and sand testing laboratories
Its infrastructure also covers machining, gear production, press, fabrication, paint, assembly, quality, and utility facilities. Promoted by Ranbir Singh Khadwalia and Sunita Saini, the company has built a reputation for consistent profitability over the years.
Financial Performance
Indo Farm Equipment has demonstrated solid financial performance:
- Total Income: ₹755.38 million (Q1 FY25), ₹3,759.53 million (FY24), ₹3,718.18 million (FY23), and ₹3,525.21 million (FY22).
- Profit After Tax (PAT): ₹24.54 million (Q1 FY25), ₹155.95 million (FY24), ₹153.72 million (FY23), and ₹137.19 million (FY22).
Indo Farm Equipment IPO Key Details
1. IPO Dates
- Opening Date: Tuesday, December 31, 2024
- Closing Date: Thursday, January 2, 2025
2. Price Band
The IPO price band is set between ₹204 and ₹215 per equity share with a face value of ₹10 each.
3. Lot Size
Investors can bid for a minimum of 69 equity shares and in multiples thereafter.
4. Anchor Investors
The allocation for anchor investors is scheduled for Monday, December 30, 2024.
5. Offer Details
The IPO includes:
- Fresh Issue: Up to 8.6 million equity shares.
- Offer for Sale (OFS): Up to 3.5 million equity shares, offloaded by promoter Ranbir Singh Khadwalia.
6. Objectives of the IPO
The proceeds from the IPO will be used for:
- Establishing a new facility to expand Pick & Carry Cranes production capacity (₹70 crore).
- Repayment or settlement of loans (₹50 crore).
- Capital infusion into NBFC subsidiary Barota Finance (₹45 crore).
- General corporate purposes.
7. Listing Date and Allotment Timeline
- Share Allotment: Friday, January 3, 2025
- Refund Processing: Monday, January 6, 2025
- Credit to Demat Accounts: Monday, January 6, 2025
- Listing Date: Tuesday, January 7, 2025, on BSE and NSE
8. Lead Manager and Registrar
- Lead Manager: Aryaman Financial Services Ltd
- Registrar: Mas Services Ltd
9. Reservation Details
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail Investors
10. Grey Market Premium (GMP)
As of today, the grey market premium (GMP) for Indo Farm Equipment IPO stands at ₹90, indicating robust investor interest. This suggests that shares could list at an estimated price of ₹305, a 41.86% premium to the upper IPO price of ₹215.
Peer Comparison
According to the Red Herring Prospectus (RHP), Indo Farm Equipment’s listed peers include:
- Escorts Kubota Ltd: P/E of 36.79
- Action Construction Equipment Ltd: P/E of 47.42
