Indo Farm Equipment IPO Closes Today: 54x Subscription and ₹90 GMP Signal Strong Listing

• Indo Farm Equipment IPO
• Market Today: January 2, 2025

Indo Farm Equipment IPO Closes Today: 54x Subscription

Indo Farm Equipment IPO: Key Updates for January 2, 2025

IPO Overview
Today marks the final day for the Indo Farm Equipment IPO, a book-built issue worth ₹260.15 crore. The offering includes a fresh issue of 0.86 crore shares (₹184.90 crore) and an Offer for Sale (OFS) of 0.35 crore shares (₹75.25 crore). The IPO opened for subscription on December 31, 2024, and closes today, with the allotment expected on January 3, 2025, and listing set for January 7, 2025.

Grey Market Premium (GMP)
According to InvestorGain.com, the current Grey Market Premium (GMP) is ₹90. If this premium holds, the IPO is poised for a strong debut.

Subscription Details
As of Day 2, the IPO was subscribed 54.50 times. The Retail Investors category was oversubscribed 45.70 times, Non-Institutional Investors (NII) 131.78 times, and Qualified Institutional Buyers (QIBs) 11.96 times.

Pricing and Lot Size
The price band for the IPO is set between ₹204 and ₹215 per share. Investors must bid for a minimum lot of 69 shares, translating to an initial investment of ₹14,835 for retail investors. For larger categories, small NIIs must invest a minimum of ₹2,07,690, while large NIIs need at least ₹10,08,780.

Anchor Investor Participation
The IPO raised ₹78.05 crore from anchor investors during the bidding on December 30, 2024.

Company Profile
Founded in 1994, Indo Farm Equipment specializes in manufacturing tractors (16 HP to 110 HP), pick-and-carry cranes (9 to 30 tons), and harvesting equipment. Its facility in Baddi, Himachal Pradesh, spans 127,840 sq. meters with an annual capacity of 12,000 tractors and 1,280 cranes.

Long-Term Potential
Brokerage Anand Rathi has given the IPO a “subscribe for long-term” recommendation, citing a strong business model, experienced promoters, strategic financial arm strengthening, and planned capacity expansion. The company’s diverse portfolio and global presence in markets like Nepal, Syria, and Sudan add to its growth prospects.

Valuation Insights
At the upper price band of ₹215, the company’s market capitalization is ₹10,331 million with an EV/EBITDA multiple of 17x (excluding interest expenses). Based on FY24 earnings, the PE ratio is 65x, reflecting a fully priced but fundamentally strong offering.

Market Today: January 2, 2025 – Key Updates and Predictions

Indo Farm Equipment IPO Closes Today: 54x Subscription Today’s stock market session will be influenced by a mix of domestic and global economic data, IPO activity, and weekly derivatives expiry. As of 6:40 AM, GIFT Nifty futures indicated a mild decline, standing at 23,885.

Global and Domestic Cues:

• Economic Data Releases:
  • India: December Manufacturing PMI data.
  • China: Caixin Manufacturing PMI for December.
  • US: Weekly jobless claims and December Manufacturing PMI.
• Global Markets Performance:
  • Australia’s S&P/ASX 200 opened up 0.17%.
  • South Korea’s Kospi dipped 0.3%.
  • Japan’s Nikkei remains closed for a Bank Holiday through Friday.

IPO Updates: Indo Farm Equipment IPO Closes Today: 54x Subscription

• Indo Farm Equipment IPO:
  • Closes today after 54.5x subscription in two days.
  • Current GMP at ₹90, suggesting a 42% listing premium over its ₹215 price band.

• SME IPOs:
  • Technichem Organics IPO: Final day to subscribe, already oversubscribed 38.5x.
  • Leo Dry Fruits and Spices IPO: Enters its second subscription day.
  • Davin Sons Retail and Parmeshwar Metal IPOs: Open for bidding today.
  • Anya Polytech and Fertilizers: Debut on NSE SME platform.

Regulatory Updates: Indo Farm Equipment IPO Closes Today: 54x Subscription

• SEBI Simplifications:
  • Integrated filing for Listing Obligations and Disclosure Requirements (LODR) begins with Q4 2024.

Economic Highlights: Indo Farm Equipment IPO Closes Today: 54x Subscription

• GST Collections: Grew 3.3% YoY to ₹1.54 trillion in December.
• Vehicle Sales: 2024 saw a 9% increase, reaching a record 26.1 million units.
• Fertilizer Sector: Government extended DAP subsidy beyond December 2024.

Market Outlook and Key Levels:

Nifty Insights: Indo Farm Equipment IPO Closes Today: 54x Subscription

• Support: 23,500.
• Resistance: 23,880–24,000 (200-Day Moving Average).
• A break above 24,000 may propel Nifty to 24,500.

Bank Nifty Insights: Indo Farm Equipment IPO Closes Today: 54x Subscription

• Support: 50,480 (200-Day EMA).
• Resistance: 51,880 (50-Day EMA).
• Expected range: 50,500–52,000.

Option Trends:

• Key Resistance: 24,000-strike call with 90.67 lakh contracts.
• Strong Support: 23,500-strike put with 78.32 lakh contracts.
• Put-Call Ratio: Increased to 1.03, reflecting mild bullish sentiment.

Indo Farm Equipment IPO Closes Today: 54x Subscription  Overall, markets are poised to open flat with resistance and support levels well-defined, leaving the session’s direction contingent on key economic data and global cues.