₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket

Indo Farm Equipment’s IPO has received strong investor interest, with over 17 times subscription on the first day. The Grey Market Premium (GMP) has surged, indicating high anticipated listing gains. The company aims to raise ₹260 crore to fund expansion plans and repay debt

CONTENTS:

• Indo Farm Equipment IPO: Key Highlights and Updates
• Indo Farm Equipment IPO Day 2 Updates: Subscription, GMP, Allotment, and Listing Details
• Indo Farm Equipment Secures ₹78 Crore from Anchor Investors Pre-IPO

₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket

Indo Farm Equipment IPO: Key Highlights and Updates

₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket  he IPO of Indo Farm Equipment Ltd, a prominent tractor manufacturer, opened for public subscription on December 31, 2024, and will close on January 2, 2025. The company seeks to raise ₹260.15 crore through this book-built issue, which consists of a fresh issue of 86 lakh equity shares worth ₹184.90 crore and an offer-for-sale of 35 lakh shares valued at ₹75.25 crore. The price band for the IPO has been set at ₹204 to ₹215 per share.

Day 1 Performance:

• Subscription Status: The IPO received a stellar response on its opening day, being oversubscribed 17.71 times by the end of the day.
  • Retail Investors: 18.55 times
  • Non-Institutional Investors (NII): 28.57 times
  • Qualified Institutional Buyers (QIBs): 8.10 times
• Bids Received: The issue attracted applications for 15.00 crore shares against 84.70 lakh shares on offer.

Objectives of the IPO:

1. Establish a new manufacturing facility to increase production capacity for Pick & Carry Cranes (₹70 crore).
2. Repay or pre-pay specific company borrowings (₹50 crore).
3. Invest in its NBFC subsidiary, Barota Finance, to bolster its capital base (₹45 crore).
4. Allocate funds for general corporate purposes.

Grey Market Premium (GMP):

• On December 31, the IPO commanded a GMP of ₹80 per share, indicating a grey market price of ₹295, which is 37% higher than the upper issue price of ₹215.

Expert Recommendations:

• Analysts like Palak Devadiga from StoxBox recommend subscribing due to strong sales growth, investment strategies, and favorable market conditions, despite the IPO being priced at a relatively high P/E ratio of 51.8x based on FY24 earnings.
• Canara Bank Securities suggests subscribing for long-term growth potential, highlighting the company’s market positioning and future prospects.

Additional Highlights:

• Indo Farm Equipment raised ₹78 crore from anchor investors, including entities like Negen Undiscovered Value Fund and India Equity Fund I, at ₹215 per share.
• The IPO registrar is Mas Services, and Aryaman Financial Services is the book-running lead manager.

Live Updates for Day 2:

• The second day of bidding commenced at 10:00 AM on January 1, 2025, with continued high demand expected.

Indo Farm Equipment IPO Day 2 Updates: Subscription, GMP, Allotment, and Listing Details

January 1, 2025 / 09:50 IST

₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket  The Indo Farm Equipment IPO, a public offering by the renowned tractor manufacturer, has entered its second day today and will remain open until tomorrow. The IPO price band has been set at ₹204 to ₹215 per share. Here’s a detailed overview of the latest developments:

1. Current Grey Market Premium (GMP): As of January 1, 2025, the GMP for the IPO stands at ₹95. Based on the upper price band of ₹215, the estimated listing price is ₹310, indicating an expected gain of 44.19%.
2. Subscription Status:
   • Day 1 Response: The IPO saw a robust response, with total subscriptions reaching 17.71 times the offer size. Retail investors subscribed 18.55 times, NIIs 28.57 times, and QIBs 8.10 times.
3. IPO Details:
   • Fundraising Goal: At the upper price band, the company plans to raise ₹260.15 crore through a mix of a fresh issue (₹184.90 crore) and an offer-for-sale (₹75.25 crore).
   • Utilization of Funds: Key allocations include ₹70 crore for expanding crane production facilities, ₹50 crore for debt repayment, and ₹45 crore for strengthening the capital base of its NBFC subsidiary, Barota Finance.
4. Valuation and Recommendations:
   • Analysts’ Views: At a P/E ratio of 51.8x (based on FY24 earnings), the valuation is higher than the industry average. Despite this, analysts from firms like StoxBox and Canara Bank Securities recommend subscribing due to the company’s growth prospects and favorable market trends.
5. Lead Managers: Aryaman Financial Services is the book-running lead manager, and Mas Services serves as the IPO registrar.

Other notable updates include: ₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket

• Indian OMCs have reduced commercial LPG cylinder prices. In Delhi, the price is now ₹1,804 after a ₹14.5 reduction.
• December’s UPI transaction value exceeded ₹20 lakh crore for the eighth consecutive month.
• New financial regulations, including changes to fixed deposits and credit card services, come into effect today.

Prime Minister Narendra Modi extended New Year wishes, expressing hopes for a prosperous and joyous 2025 for all citizens.

Indo Farm Equipment Secures ₹78 Crore from Anchor Investors Pre-IPO

₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket  Ahead of its IPO launch, Indo Farm Equipment raised ₹78.04 crore from anchor investors. Prominent participants included Negen Undiscovered Value Fund, Niveshaay Hedgehogs, Rajasthan Global Securities, Subham Capital, India Equity Fund I, Saint Capital Fund, and Vikasa India EIF I Fund – Share Class P, among others, as per a BSE circular. The company allocated 36.30 lakh equity shares to 11 entities at ₹215 per share, the upper limit of the IPO price band.

IPO Highlights:

• Public Subscription Period: Open from December 31 to January 2.
• Price Band: ₹204-₹215 per share.
• Offer Details: Total IPO size of ₹260 crore, comprising:
  • Fresh issue of 86 lakh equity shares.
  • Offer-for-sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.

Fund Utilization:

• Establishing a new manufacturing facility for pick-and-carry cranes.
• Repayment of existing debt.
• Investment in Barota Finance, its NBFC subsidiary, to meet capital requirements.

Company Profile:

Indo Farm Equipment specializes in manufacturing tractors, pick-and-carry cranes, and agricultural machinery. The IPO allocation structure is divided as follows:

• Qualified Institutional Buyers (QIBs): 50%.
• Retail Investors: 35%.
• Non-Institutional Investors (NIIs): 15%.

₹78 Crore Poured In! Indo Farm IPO: A Hot Ticket  The shares will be listed on both BSE and NSE, with Aryaman Financial Services acting as the sole book-running lead manager.