Indo Farm Equipment IPO - AstroIPO

Indo Farm Equipment IPO


December 12, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Indo Farm Equipment Ltd. is launching an IPO from December 31, 2024 to January 2, 2025, with a price band of ₹204 to ₹215 per share to raise ₹260.15 crores in the Tractors Manufacturing sector.

The IPO Structure a fresh issue of 86,00,000 shares (₹184.90 crores) and an offer for sale of 35,00,000 shares (₹75.25 crores). Investors can apply for a minimum lot of 69 shares, requiring ₹14,835 at the upper price band. Each share has a face value of ₹10.

The Indo Farm Equipment IPO will list on BSE and NSE, offering 1,21,00,000 shares to the public.

Indo Farm Equipment IPO Details

The key details of Indo Farm Equipment’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.

IPO Size ₹260.15 Cr
Price Range ₹204 - ₹215
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount --
Listing at NSE and BSE
Minimum Quantity 69
Investment (cut-off price) ₹14,835
Pre IPO Promotor Holding 93.45%
Post IPO Promotor Holding 69.44%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Indo Farm Equipment IPO Timelines

The IPO process for Indo Farm Equipment includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.

31/12/2024
Start Date
02/01/2025
End Date
03/01/2025
Allotment Date View Status
06/01/2025
Refund Initiation
06/01/2025
Credit of Shares to Demat Ac
07/01/2025
Listing Date

Indo Farm Equipment IPO Lot Size

The Indo Farm Equipment IPO has a fixed lot size of 69 shares, at an upper price band of ₹215 per share, requiring ₹14,835 per lot for retail investors. Retail investors can apply for a maximum of 897 shares worth ₹192,855. For Small HNI (S-HNI), the minimum application starts at 966 shares (₹207,690) up to 4,623 shares (₹993,945), while Big HNI (B-HNI) requires a minimum of 4,692 shares amounting to ₹1,008,780.

Application Lot Size Shares Amount
Retail Minimum 1 69 ₹14,835
Retail Maximum 13 897 ₹1,92,855
S-HNI Minimum 14 966 ₹2,07,690
S-HNI Maximum 67 4623 ₹9,93,945
B-HNI Minimum 68 4692 ₹10,08,780

Indo Farm Equipment IPO Subscription Status

The subscription status for Indo Farm Equipment IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.

QIB NII Retail EMP Total
242.40x 501.75x 101.79x -- 227.67x

IPO Performance on Listing Day

On the listing day (January 7, 2025), Indo Farm Equipment made a positive debut on the stock exchange. The stock opened at ₹256, registering a decent premium of 19% over its issue price of ₹215. Throughout the trading session, the stock maintained steady momentum, reaching a high of ₹287 while holding firm at its opening price level of ₹256. The shares concluded their first trading day at ₹273.69, securing a healthy gain of 28.1% over the issue price, reflecting optimistic market sentiment towards this agricultural equipment manufacturer.

Opening Price Closing Price Day High Day Low
₹256 ₹273.69 ₹287 ₹256

Indo Farm Equipment IPO Company Financials

Indo Farm Equipment reports robust performance in FY2024 with Total Income of ₹375.95 crores, managing expenses at ₹352.06 crores, and achieving a strong PAT (Profit After Tax) of ₹15.60 crores, demonstrating significant growth potential ahead of its public offering.

Year Total Income Total Expense PAT
FY 2022 ₹352.08 ₹333.34 ₹13.72
FY 2023 ₹371.82 ₹349.57 ₹15.37
FY 2024 ₹375.95 ₹352.06 ₹15.60
FY 2025 (3 M) ₹75.54 ₹71.79 ₹2.45

About Company

Established in 1994, Indo Farm Equipment Limited is a leading manufacturer of tractors, pick and carry cranes, harvesters, rotavators, and associated spare parts. The company operates from its ISO 9001:2015 certified manufacturing facilities located in Baddi, Himachal Pradesh, covering 1,27,840 square metres. Indo Farm’s infrastructure includes a foundry unit, machine shop, fabrication and assembly units, and a comprehensive metallurgy and testing lab. The company has expanded its product range over the years, introducing pick and carry cranes in 2007 and launching an in-house Non-Banking Financial Company (NBFC) in 2017 to provide retail financing for tractors.

Indo Farm Equipment Limited’s products are primarily sold in the domestic market, with a 90% sales distribution in India and 10% in international markets. The company operates through a network of over 140 dealers across key agricultural states. Its manufacturing capabilities include producing 12,000 tractors and 720 cranes annually, with tractors ranging from 16 HP to 110 HP and cranes with lifting capacities from 9 tons to 30 tons. With the Indian agricultural machinery market expected to grow significantly, Indo Farm is well-positioned for expansion and aims to enhance its manufacturing capacity as part of its IPO objectives.

Incorporation Date Sector Managing Director
1994 Manufacturing Ranbir Singh Khadwalia

Know Before Investing

When evaluating Indo Farm Equipment's IPO potential, understanding both its market advantages and inherent risks becomes crucial for your investment. Below are the key insights you should consider.

Indo Farm Equipment IPO Strengths

  • The company operates ISO 9001:2015 certified manufacturing facilities in Baddi, Himachal Pradesh, with units for foundry, machining, and assembly of tractors and cranes.
  • The company established Barota Finance Limited, an NBFC, to provide tractor financing solutions, enhancing its service offerings.
  • The company exports to over 20 countries, including Nepal, UAE, and Germany, with an annual production capacity of 3,600 units.

Indo Farm Equipment IPO Risks

  • The company’s heavy reliance on tractors and cranes exposes it to risks from reduced demand or manufacturing disruptions.
  • The company faces risks from the potential loss of necessary licenses, registrations, or approvals, which could affect its operations and finances.
  • The lack of long-term agreements with raw material suppliers may lead to increased costs or supply chain disruptions.
  • The pledging of personal assets and guarantees by promoters could negatively impact the company’s financial health if revoked.

Swot Analysis for Indo Farm Equipment IPO

Understanding Indo Farm Equipment's SWOT analysis is your first step towards making a confident investment decision. Let's evaluate its core strengths and potential challenges ahead.

Strengths

Established Manufacturer, Diverse Product Range, Strong Production Capacity, Integrated Operations

Weaknesses

High Dependence on Domestic Market, Limited International Presence, High Operational Costs

Opportunities

Growing Agricultural Demand, Expansion Plans, Technological Advancements

Threats

Intense Competition, Economic Fluctuations, Regulatory Compliance Risks

Company Details

Indo Farm Equipment Limited

SCO 859,
NAC Manimajra Kalka Road,
Chandigarh 160101

Phone: 0172-2730060

Email: compliance@indofarm.in

Website: https://www.indofarm.in/

IPO Registar Details

Mas Services Limited

Phone: (011) 2610 4142

Email: ipo@masserv.com

Website: https://www.masserv.com/opt.asp

FAQs

The key objectives of Indo Farm Equipment IPO are:

  • Establishing a new unit to expand Pick & Carry Cranes manufacturing capacity.
  • Repaying or pre-paying certain company borrowings.
  • Investing further in NBFC subsidiary, Barota Finance Ltd., to strengthen capital base.
  • General corporate purposes.

Aryaman Financial Services Limited is the book-running lead managers for the Indo Farm Equipment IPO.

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