About Indo Farm Equipment IPO
Indo Farm Equipment is gearing up to launch its Rs 260.15 crore IPO. This IPO subscription is an amalgamation of a fresh issue of Rs 184.90 crore (0.86 crore shares) and an offer-for-sale of Rs 75.25 crore (0.35 crore shares). The firm is preparing to debut on both the BSE and NSE.
Retail investors must make a minimum investment of Rs 14,835 to participate. Small NII investors need to invest at least Rs 2,07,690 for 966 shares, equivalent to 14 lots. Large NII investors need a minimum investment of Rs 10,08,780 for 4,692 shares, which is 68 lots.
Mas Services Ltd will oversee the registration process for this offering. Aryaman Financial Services Ltd is the book running lead manager in this IPO.
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Indo Farm Equipment IPO GMP:
The most recent GMP of the IPO is Rs 85, as of 27th December, 2024 09:30 AM. The IPO has a price band of Rs 215. The estimated listing price for Indo Farm Equipment IPO is Rs 300, reflecting a potential gain of 39% per share.
For the IPO, the Retail Subject to Sauda is Rs 1,100, and the Small HNI Subject to Sauda is Rs 15,400. The GMP ranges from a low of Rs 0 to a high of Rs 21.
Indo Farm Equipment IPO Details
| Indo Farm Equipment IPO Opening Date and Closing Date | 31st December to 2nd January |
| Face Value | Rs 10 per share |
| Price Band | Rs 204 to Rs 215 per share |
| Lot Size | 69 Shares |
| Total Issue Size | 1,21,00,000 shares (aggregating up to Rs 260.15 Cr) |
| Fresh Issue | 86,00,000 shares (aggregating up to Rs 184.90 Cr) |
| Offer for Sale | 35,00,000 shares (aggregating up to Rs 75.25 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 3,94,51,600 Shares |
| Shareholding Post Issue | 4,80,51,600 Shares |
| Basis of Allotment | Friday, 3rd January, 2025 |
| Refund Initiation | Monday, 6th January, 2025 |
| Credit of Shares in Demat | Monday, 6th January, 2025 |
| Listing Date | Tuesday, 7th January, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on 2nd January, 2025 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Indo Farm Equipment Company Details
Indo Farm Equipment Limited is a company which was established in 1994. It manufactures tractors, pick & carry cranes, and harvesting equipment.
The company operates in two brands, Indo Farm and Indo Power, and exports to Nepal, Syria, Sudan, Bangladesh, and Myanmar.
They manufacture tractors (16 HP to 110 HP) and pick & carry cranes (9 to 30 tons). Their Baddi, Himachal Pradesh facility spans 127,840 sq. meters and includes a foundry, machine shop, and assembly units.
The annual production capacity is 12,000 tractors and 1,280 pick & carry cranes. Additional industrial land near the facility will expand crane production by 3,600 units annually.
As of 30th June, 2024, the company employed 938 people.
Indo Farm IPO Lot Size, Shares And Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 69 | Rs 14,835 |
| Retail (Max) | 13 | 897 | Rs 1,92,855 |
| S-HNI (Min) | 14 | 966 | Rs 2,07,690 |
| S-HNI (Max) | 67 | 4,623 | Rs 9,93,945 |
| B-HNI (Min) | 68 | 4,692 | Rs 10,08,780 |
Indo Farm IPO shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Indo Farm Equipment Key Finances:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 647.95 Cr. | Rs 622.84 Cr. |
| Revenue | Rs 375.95 Cr. | Rs 371.82 Cr. |
| Profit After Tax | Rs 15.6 Cr. | Rs 15.37 Cr. |
| Net Worth | Rs 317.06 Cr. | Rs 290.37 Cr. |
| Total Borrowing | Rs 270.54 Cr. | Rs 280.65 Cr. |
Indo Farm Equipment IPO: Worth Investing Or Not?
Financial Performance:
Revenue: The company generated Rs 75.54 crore in revenue during the period ended on 30th June, 2024.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 342.25 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 644.27 crore.
Indo Farm Equipment KPI & values:
The market capitalisation of Indo Farm Equipment IPO is Rs 1,033.11 crore. As of 31st March, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | 5.13% |
| Return on Capital Employed (ROCE) | 8.96% |
| Return on Net Worth (RoNW) | 4.92% |
| Debt-to-Equity (D/E) | 0.01 |
| Price to Book Value (P/BV) | 2.55 |
| PAT Margin (%) | 4.16 |
Objectives of Indo Farm Equipment IPO
The Net Fresh Issue aims to raise funds for:
- Expanding Pick & Carry Cranes manufacturing capacity by setting up a new dedicated unit.
- Repaying or pre-paying certain borrowings.
- Investing in NBFC subsidiary Barota Finance Ltd. to boost its capital base for future needs.
- General corporate purposes.
Key Risks of Investing in Indo Farm IPO
- The company heavily depends on tractors and pick-carry cranes for revenue, making it vulnerable to reduced demand or production issues.
- It risks operational disruptions if unable to secure or renew necessary licences and approvals.
- The lack of long-term supplier agreements may cause raw material cost hikes or shortages, affecting supply chain and costs.
- Promoters have pledged personal assets and guarantees for loans; their withdrawal could harm the company’s finances.
Indo Farm Equipment IPO FAQs:
What is the price band of the Indo Farm Equipment IPO?
Price band has been fixed at Rs 204 and Rs 215 per share.
What is the retail investor quota of the Indo Farm Equipment IPO?
A minimum of 35% shares shall go to the retail investors.
What is the lot size and share distribution for High Net-Worth Individuals (HNIs)?
The lot size for HNIs is 14 lots, with a total of 266 shares allocated.
How can I apply for the Indo Farm Equipment Initial Public Offer?
You can apply through your demat account, banking channels, or other financial institutions during the IPO period.
When is the Last Date of IPO subscription for Indo Farm Equipment?
The cut-off time is 5 PM on 2nd January, 2025, but many brokers close applications earlier, typically between 1-3 PM.
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