Indo Farm Equipment IPO Day 2: Subscription rises 17x, GMP zooms 44%

Indo Farm Equipment IPO has received an enthusiastic response from investors, being oversubscribed by 17.70 times on the first day of subscription

Indo Farm Equipment IPO subscription status: The initial public offering (IPO) of Indo Farm Equipment, which opened for subscription yesterday, December 31, 2024, has received an enthusiastic response from investors, getting oversubscribed by 17.70 times on the first day of subscription.

 

Indo Farm Equipment IPO is a book-built issue of Rs 260.15 crore. The National Stock Exchange data showed that the public offering received bids for 14,99,60,184 shares against 84,70,000 on offer. Non-Institutional Investors (NIIs) placed the highest bids for the public offering, oversubscribing the category reserved for them by 28.56 times. This was followed by Retail Individual Investors (RIIs), who oversubscribed their category by 18.54 times. The quota reserved for the Qualified Institutional Buyers (QIBs) also got oversubscribed by 8.10 times. 

 

 

Indo Farm Equipment IPO, available at a price band of Rs 204-215 per share, and a lot size of 69 shares, will close for subscription on Thursday, January 2, 2025.

  Indo Farm Equipment IPO grey market premium (GMP) today

Meanwhile, the unlisted shares of Indo Farm Equipment were commanding a solid premium in the grey markets on the second day of the subscription period. Sources tracking grey market activities revealed that the company’s shares were quoted at Rs 310 apiece against the upper end of the IPO price of Rs 215. Thus, Indo Farm Equipment IPO's grey market premium (GMP) stood at Rs 95 or 44.19 per cent today.

  Indo Farm Equipment IPO review

Indo Farm Equipment has also garnered positive reviews from brokerages, including Canara Bank Securities and Anand Rathi, for its public offering. READ MORE

  Indo Farm Equipment IPO allotment, listing schedule

Following the closure of the subscription window, the basis of allotment of Indo Farm Equipment IPO shares is expected to get finalised on Friday, January 3, 2025. The successful allottees will receive the company's shares on Monday, January 6, 2025, into their demat accounts.

 

Indo Farm Equipment shares are expected to list on the BSE and NSE tentatively on Tuesday, January 7, 2025.

 

Mas Services serves as the registrar for the Indo Farm Equipment IPO, while Aryaman Financial Services is the book-running lead manager.

  Indo Farm Equipment IPO objective

"The Promoter Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale after deducting their proportion of Offer-related expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer for Sale by the Promoter Selling Shareholders," said Indo Farm Equipment in its Red Herring Prospectus (RHP).

 

However, Indo Farm Equipment intends to utilise the proceeds from the fresh issue for setting up a new dedicated unit for the expansion of its Pick & Carry Cranes Manufacturing Capacity, and for the repayment or pre-payment, in full or part, of certain borrowings availed by the company.

 

The company further intends to use proceeds for investment in its NBFC subsidiary (Barota Finance) for financing the augmentation of its capital base to meet its future capital requirements, as well as for general corporate purposes.

 

About Indo Farm Equipment

Indo Farm Equipment was incorporated in 1994. The company manufactures tractors, pick & carry cranes, and other harvesting equipment. The company operates under two brands: Indo Farm and Indo Power. Its products are exported to various countries, including Nepal, Syria, Sudan, Bangladesh, and Myanmar. The company's product range includes tractors from 16 HP to 110 HP and pick & carry cranes from 9 to 30 tons. The company's manufacturing facility is located in Baddi, Himachal Pradesh, and spans 127,840 sq. meters. The facility includes a foundry, machine shop, and assembly units.