Indo Farm Equipment Limited, a well-known Indian manufacturer of tractors and agricultural machinery, is preparing to launch its Initial Public Offering (IPO) on December 31, 2024. The IPO aims to raise around ₹260 crore, with share prices set between ₹204 and ₹215 each. The subscription period will be open until January 2, 2025.
Company Overview:
Founded in 1994, Indo Farm Equipment has established itself in the agricultural sector by offering a wide range of tractors (from 16 HP to 110 HP), pick-and-carry cranes (ranging from 9 to 30 tons), and various other farm equipment. Operating under the brands Indo Farm and Indo Power, the company caters to the domestic market and exports to countries such as Nepal, Syria, Sudan, Bangladesh, and Myanmar. Its manufacturing facility in Baddi, Himachal Pradesh, covers over 127,840 square meters and has an annual production capacity of 12,000 tractors and 1,280 cranes.
Financial Performance:
For the fiscal year ending March 31, 2024, Indo Farm Equipment reported a revenue of ₹375.95 crore, a slight increase from ₹371.82 crore the previous year. The company’s profit after tax was ₹15.6 crore, up from ₹15.37 crore in the prior year, indicating steady financial performance.
IPO Details:
Price Band: ₹204 to ₹215 per share
Issue Size: Approximately ₹260 crore, consisting of a fresh issue of 86 lakh equity shares and an offer for sale of 35 lakh shares by the promoter.
Lot Size: Investors can bid for a minimum of 69 shares, totaling ₹14,835 at the upper price band.
Allocation: 50% is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).
Grey Market Premium (GMP):
As of December 24, 2024, the Grey Market Premium for Indo Farm Equipments IPO is around ₹21, indicating a potential listing price of approximately ₹236 per share. This suggests an expected gain of about 9.77% over the upper price band, reflecting positive investor sentiments.
1.Indo Farm Equipment has built a solid market presence over the past thirty years, establishing itself in both domestic and international arenas.
2. The company offers a diverse range of products that serve various segments within the agricultural and construction industries, which helps mitigate reliance on any single product line.
3. The funds raised from the IPO are intended for expanding capacity, paying off debts, and investing in its NBFC subsidiary, Barota Finance, reflecting a well-thought-out growth strategy.
4. The company has demonstrated consistent financial performance, with steady revenue and profit growth over the years, highlighting its resilience and operational effectiveness.
5. Current market sentiment is positive, as indicated by the favorable GMP, which suggests potential gains upon listing.
The upcoming IPO of Indo Farm Equipment offers a promising opportunity for investors, particularly those interested in India’s agricultural growth. With its established market presence, diverse product offerings, and strategic plans for expansion, the company stands out as an appealing investment.
Investors, merchants and traders can invest in this type of stocks by creating a demat account in Angel one.
Indo Farm Equipment Limited
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