Indo Farm Equipment share lists at 20% premium; misses IPO GMP forecasts

Indo Farm Equipment shares listed at Rs 258.40 apiece on the BSE, and Rs 256 apiece on the NSE, against the issue price of Rs 215 per share

Indo Farm Equipment IPO listing: Shares of agriculture and harvesting equipment maker Indo Farm Equipment made a strong debut on the bourses on Tuesday, January 7, 2025, following the completion of its IPO (Initial Public Offering) rounds. Indo Farm Equipment shares listed at Rs 258.40 apiece on the BSE, reflecting a premium of Rs 43.40 or 20.19 per cent against the issue price of Rs 215.

 

On the National Stock Exchange (NSE), Indo Farm Equipment shares listed at Rs 256 apiece, showing a slightly lower premium of Rs 41 or 19.07 per cent against the issue price.

 

With the Indo Farm Equipment IPO listing, investors who were allotted the company's shares made a profit of around Rs 43 per share or over 38 per cent. However, the Indo Farm Equipment IPO listing was slightly below grey market expectations, as the company’s shares were trading at Rs 291 in the grey market, reflecting a premium of Rs 76 or 35.35 per cent over the issue price. 

"Despite the overwhelming response, Indo Farm Equipment's listing was below our expectations," said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities. "Tapse believes the listing was lower considering the market mood after 'Panic Monday'. Considering renewed market sentiments, he recommends that conservatively allotted investors can think of booking profits above expectations."

 

 

"While long-term investors should consider holding onto it for the long term, despite knowing the short-term volatility post-listing and risk in the markets. For non-allotted investors, we advise accumulating if we get dips post-listing due to profit-booking attempts," Tapse added.

 

Indo Farm Equipment IPO Details

The Indo Farm Equipment IPO was available in a price band of Rs 204-215 per share, with a lot size of 69 shares. The public offering was open for subscription from Tuesday, December 31, 2024, to Thursday, January 2, 2025.  Also Read: Capital Infra Trust IPO

 

By the end of the subscription period, the Rs 260.15 crore offering of Indo Farm Equipment received bids for 1,94,53,89,519 shares against the 84,70,000 shares offered, resulting in an oversubscription of 229.68 times, as per the data available on the BSE.

 

Non-Institutional Investors (NIIs) placed the highest bids, oversubscribing their reserved quota by 503.83 times, followed by Qualified Institutional Buyers (QIBs), who bid for 242.40 times their allocated quota, and Retail Individual Investors (RIIs), at 104.92 times.

 

The basis of share allotment was finalised on Friday, January 3, 2025.

 

Mas Services served as the registrar for the issue, while Aryaman Financial Services acted as the sole book-running lead manager.

 

About Indo Farm Equipment

Incorporated in 1994, Indo Farm Equipment is a fully integrated and established manufacturer of tractors and pick-and-carry cranes. The company also deals in other farm equipment such as harvester combines, rotavators, and related spares and components, which do not materially contribute to its total revenue. As of September 30, 2024, its production facilities had a capacity to manufacture 12,000 tractors per annum and 1,280 pick-and-carry cranes per annum.