Indo Farm Equipment IPO opens tomorrow: GMP, other details of the issue

Indo Farm Equipment's IPO includes a fresh issue of 8.6 million equity shares along with an offer for sale (OFS) of up to 3.5 million equity shares

Published on: Dec 30, 2024, 12:50:19 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Indo Farm Equipment's initial public offering (IPO) will be opening up for subscription on Tuesday, December 31, 2024, according to a Mint report.

Indo Farm Equipment IPO: It is a well-established manufacturer of tractors and pick & carry cranes with more than two decades of experience in the field. The Chandigarh-based company also sells different types of agricultural equipment, which includes combine harvesters, rotavators, and also spare parts and components. (Representational Image/Pixabay)

It is a well-established manufacturer of tractors and pick & carry cranes with more than two decades of experience in the field.

The Chandigarh-based company also sells different types of agricultural equipment, which includes combine harvesters, rotavators, and also spare parts and components.

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Details of the Indo Farm Equipment IPO

Indo Farm Equipment's IPO includes a fresh issue of 8.6 million equity shares along with an offer for sale (OFS) of up to 3.5 million equity shares from Ranbir Singh Khadwalia, the Promoter Selling Shareholder.

The IPO's price band will be in the range of ₹204 to ₹215 per equity share with a face value of ₹10. Its lot size is 69 equity shares.

The allocation for anchor investors is scheduled to take place today on Monday, December 30.

The company will be using the net proceeds of the IPO to establish a dedicated facility to build pick & carry cranes ( ₹70 crore), to repay or settle a debts ( ₹50 crore), to increase its investment in its NBFC subsidiary (Barota Finance), to develop its capital base for upcoming requirements ( ₹45 crore), and to allocate the remaining funds for general corporate purposes.

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The share allocation will be on Friday, January 3, refunds will happen on January 6, shares will be credited to the allottees' demat accounts on the same day, and the listing on the BSE and NSE will be on January 7.

Aryaman Financial Services Ltd is the book running lead manager for the Indo Farm Equipment IPO, while Mas Services Ltd is the registrar handling the issue.

The company has reserved 50% of the shares for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% for for retail investors.

The current grey market premium (GMP) is ₹82, according to investorgain.com. The estimated listing price is ₹305 apiece, 41.86% higher than the IPO price of ₹215, according to the report.

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All about Indo Farm Equipment

The promoters of this company are Ranbir Singh Khadwalia and Sunita Saini.

Indo farm Equipment's listed peers include Escorts Kubota Ltd and Action Construction Equipment Ltd, according to its red herring prospectus (RHP).

For the financial years 2023-24, 2022-23, and 2021-22, it reported a total income of ₹375.95 crore, ₹371.81 crore, and ₹352.52 crore respectively.

Its profit after tax for the same periods were ₹2.45 crore, ₹1.55crore, and ₹1.54 crore respectively.

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HT News Desk
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