Indo Farm Equipment IPO


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Indo Farm Equipment IPO: All You Need to Know

The Indo Farm Equipment IPO is generating significant interest among investors in the manufacturing sector. Here's a complete breakdown of the IPO, including its key details, objectives, financials, and reservation details to help you make an informed decision.

Indo Farm Equipment IPO Key Details


DetailsInformation
IPO Opening DateDecember 31, 2024
IPO Closing DateJanuary 2, 2025
Allotment FinalizationJanuary 3, 2025
Listing DateJanuary 7, 2025
Price Band₹204 to ₹215 per share
Lot Size69 shares
Minimum Investment₹14,835
Total Issue Size₹260.15 crores
Fresh Issue₹184.90 crores (0.86 crore shares)
Offer for Sale (OFS)₹75.25 crores (0.35 crore shares)
Listing onBSE and NSE

Company Background

Incorporated in 1994, Indo Farm Equipment Limited is a leading manufacturer of tractors, pick-and-carry cranes, and other harvesting equipment. The company operates under two brands—Indo Farm and Indo Power—and has a global footprint, exporting its products to countries like Nepal, Syria, Sudan, Bangladesh, and Myanmar.

The company is known for its quality products and is now aiming to expand its operations through this IPO.

Indo Farm Equipment IPO Reservation Details

CategoryReservation
QIB (Qualified Institutional Buyers)Not more than 50% of the net issue
Retail Investors (RIIs)Not less than 35% of the net issue
NII (Non-Institutional Investors)Not less than 15% of the net issue

Financial Performance


PeriodRevenue (₹ Cr)Profit After Tax (₹ Cr)Total Borrowings (₹ Cr)
June 30, 202475.542.45245.36
March 31, 2024375.9515.6270.54
March 31, 2023371.8215.37280.65
March 31, 2022352.5213.72275

The company has shown modest growth in revenue and profits, with a steady reduction in borrowings, which indicates better financial discipline.

Objects of the Issue

The IPO proceeds will be utilized for:
  • Expanding Crane Manufacturing Capacity: Setting up a dedicated unit for pick-and-carry cranes.
  • Repayment of Borrowings: Reducing the company's debt burden.
  • Investment in NBFC Subsidiary: Augmenting the capital base of Barota Finance Ltd. to meet future requirements.
  • General Corporate Purposes.

Investment Considerations

Why Invest?

  • Established Brand: With over 30 years of industry experience, Indo Farm is a trusted name.
  • Export Markets: Strong global presence with products exported to multiple countries.
  • Financial Discipline: Reduced borrowings over time indicate better financial management.
  • Expansion Focus: Fresh funds will aid in scaling operations and entering new markets.

What to Watch Out For?

  • Modest Growth: Revenue and profit growth have been only 1% year-on-year.
  • Competitive Market: The agricultural and equipment manufacturing sectors are highly competitive.

FAQs About Indo Farm Equipment IPO

1. What is the Indo Farm Equipment IPO price band?

The IPO price band is ₹204 to ₹215 per share.

2. What are the Indo Farm Equipment IPO dates?

The IPO opens on December 31, 2024, and closes on January 2, 2025.

3. What is the lot size for Indo Farm Equipment IPO?

The minimum lot size is 69 shares, requiring a minimum investment of ₹14,835.

4. When will Indo Farm Equipment IPO be listed?

The IPO is expected to list on January 7, 2025, on BSE and NSE.

5. What is Indo Farm Equipment IPO GMP?

The Grey Market Premium (GMP) will be updated closer to the listing date. Stay tuned for updates to gauge listing gains.

6. What are the objectives of the Indo Farm Equipment IPO?

The IPO funds will be used for expanding manufacturing capacity, repaying debt, investing in their NBFC subsidiary, and general corporate purposes.

Conclusion

The Indo Farm Equipment IPO offers a unique opportunity to invest in a company with a solid track record and ambitious growth plans. While growth has been modest, the company’s consistent profitability and efforts to reduce debt make it a promising investment.
Investors should keep an eye on the Grey Market Premium (GMP) and consult financial advisors before making decisions.
Are you planning to invest in the Indo Farm Equipment IPO? Share your thoughts in the comments below!

Indo Farm Equipment IPO, Indo Farm Equipment IPO dates, Indo Farm Equipment IPO GMP, Indo Farm Equipment IPO price, Indo Farm Equipment IPO lot size, Indo Farm Equipment IPO objectives, Indo Farm Equipment IPO allotment date.

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