Indo Farm Equipment IPO opens today: Check GMP, review, subscription status

The initial public offering (IPO) of Indo Farm Equipment opened for subscription today, December 31, 2024. Indo Farm Equipment IPO aims to raise Rs 260.15 crore via fresh issue of 8.6 million shares, aggregating to Rs 184.9 crore and an offer for sale (OFS) of 3.5 million shares, aggregating to Rs 75.25 crore. The company, which manufactures tractors and other harvesting equipment, raised Rs 78.05 crore from anchor investors on December 30, 2024.

Here are key details of Indo Farm Equipment IPO:

Indo Farm Equipment IPO subscription status 

On the first day, around 11:30 AM, Indo Farm Equipment IPO was subscribed 4.84 times with a total bid of 4,10,13,186 shares against the offer of 84,70,000. The Retail Individual Investors (RIIs) showed the most interest and subscribed to their portion by 7.21 times bidding 3,05,51,958 shares, Non-Institutional Investors (NIIs) subscribed to their portion by 5.76 times with a bid of 1,04,51,706 shares and Qualified Institutional Buyers (QIBs) subscribed the portion by 9,522 shares. 

 

Indo Farm Equipment IPO price band, lot size

The public offering is available at a price band of Rs 204 to Rs 215  per share, with a lot size of 69 shares. Accordingly, investors can bid for a minimum of 69 shares and in multiples thereafter. A retail investor needs a minimum of Rs 14,835 to bid for one lot comprising 69 shares. 

Indo Farm Equipment IPO grey market premium (GMP) today

The unlisted shares of Indo Farm are commanding a strong premium in the grey market. Unlisted shares of Indo Farm were trading at Rs 295 apiece, reflecting a grey market premium (GMP) of Rs 80 or 37.21 per cent against the upper end of the IPO price of Rs 215, according to sources tracking unofficial markets.

Indo Farm Equipment IPO allotment, listing schedule 

The public subscription window for Indo Farm IPO will close on Thursday, January 2, 2025. Following the closure of the subscription window, the basis of the allotment of shares is expected to be finalised on Friday, January 3, 2025, with shares credited to investors' demat accounts by Monday, January 6, 2025.

 

Shares of Indo Farm will tentatively list on the BSE and NSE on Tuesday, January 7, 2025.

Indo Farm Equipment IPO registrar, BRLM

Mas Services Limited is the registrar for Indo Farm Equipment IPO, while Aryaman Financial Services Ltd is the only book-running lead manager of the public issue.

Indo Farm Equipment IPO objective

According to its Red Herring Prospectus (RHP), the company proposes to utilise the net proceeds from the fresh issue for setting up a new dedicated unit for the expansion of their pick and carry cranes manufacturing capacity. 

 

The proceeds will also be used for repayment of certain borrowings and further investment in its Non-Banking Financial Company (NBFC) subsidiary Barota Finance Ltd. for financing the augmentation of its capital base to meet its future capital requirements. Further, the funds will be used for, general corporate purposes. 

Indo Farm Equipment IPO - Brokerage recommendations

Canara Bank Securities - Subscribe

Analysts at Canara Bank Securities have assigned a ‘Subscribe’ rating to the IPO given the company's growth potential and market positioning. According to them, as of March 2024, the issue is priced at a price-to-equity (P/E) ratio of 51.81x, compared to the industry average of 43.82x, which indicates a valuation that appears expensive relative to its peers.

 

Anand Rathi - Subscribe for long-term 

Brokerage firm Anand Rathi has also assigned a ‘Subscribe’ rating to the Indo Farm Equipment IPO, on the backdrop of its traditional business value and experienced promoters, well-planned capacity expansion, debt repayment, and strengthening of its financial arm.

 

"On valuation parse at the upper band of Rs 215, the issue is asking for a

market capitalisation of Rs 1033.1 crore and EV/Ebitda at 17 which excludes the impact of interest outgo. Based on FY24 earnings, the company is asking a PE of 65x times which is fully priced," the report said. 

 

Ebitda refers to Earnings before interest, tax, amortisation, and depreciation. 

About Indo Farm Equipment 

Incorporated in 1994, Indo Farm Equipment Limited is engaging in manufacturing tractors, pick and carry cranes, and other harvesting equipment. The company operates two brands: Indo Farm and Indo Power.