Indo Farm Equipment IPO is a well-known company that specializes in manufacturing tractors, pick-and-carry cranes, and other farm equipment. With more than twenty years of industry experience, Indo Farm Equipment offers a diverse range of tractors (from 16 HP to 110 HP) and pick-and-carry cranes (from 9 tons to 30 tons), along with supplementary agricultural equipment. Renowned for its high-quality products and innovative approach, Indo Farm Equipment is a trusted brand in the agricultural and industrial equipment sector, serving a growing market both domestically and globally.
The Indo Farm Equipment IPO will commence its subscription period on December 31, offering shares within a price range of ₹204 to ₹215. The purpose of the IPO is to secure capital for the expansion of production capabilities, loan repayment, and investments in its subsidiary. The listing of shares is scheduled for January 7.
Indo Farm Equipment Ltd – Analysis
— Brighter Mind Equity Advisor (@BrighterEquity) December 30, 2024
IPO Details
Issue Size: Rs 260.15 crores
Fresh issue of 0.86 crore shares and an OFS of 0.35 crores.
Price Band: Rs 204-215/-
Biding Dates: Dec 31 to Jan 02, 2025
GMP is nearly 37%
Objective behind raising: Expand Production, Repayment of… pic.twitter.com/JMwx8nkPMB
IPO Highlights You Can’t Miss
📅 Key Dates:
The Indo Farm Equipment IPO will open for subscription on December 31, 2024, giving investors the chance to buy shares at the specified price band. The subscription window will remain open until January 2, 2025, after which it will close. The company will list its shares on January 7, 2025, marking the day when shares will begin trading on the stock exchange, providing an opportunity for early investors to see potential gains.
💰 Issue Size: ₹260.15 crores
The total amount to be raised through the IPO is ₹260.15 crores, which will be split between a fresh issue and an offer for sale. This substantial amount will help the company fund its expansion, reduce debt, and enhance its subsidiary, positioning it for further growth in the market.
- Fresh Issue: ₹184.90 crores (0.86 crore shares)
The fresh issue portion of the IPO will raise ₹184.90 crores, representing 0.86 crore shares. These funds will primarily be used for expanding Indo Farm Equipment’s production capabilities, supporting its long-term growth objectives. - Offer for Sale: ₹75.25 crores (0.35 crore shares)
The offer for sale portion of the IPO will raise ₹75.25 crores, consisting of 0.35 crore shares that are being sold by existing shareholders. This part of the offering allows current investors to exit partially or completely while also contributing to the company’s fund-raising efforts.
🏷️ Price Band: ₹204 – ₹215 per share
The shares will be offered within the price band of ₹204 to ₹215 per share, providing a range for investors to choose from when placing their bids. The final price within this range will be determined based on the demand received during the subscription period. The price band has been set to ensure the IPO is attractive to both institutional and retail investors.
📊 Lot Size: 69 shares
Each lot for the IPO consists of 69 shares, and investors must bid for a minimum of one lot. This lot size makes it accessible to a wide range of retail investors, allowing them to participate in the IPO with a relatively modest investment.
The Indo Farm Equipment IPO combines both a fresh issue and an offer for sale, helping raise capital for various strategic initiatives. The IPO structure also ensures that shares are accessible to different investor categories, with a reservation policy that favors Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors.
Conclusion
The Indo Farm Equipment IPO presents a promising investment opportunity for those looking to capitalize on a well-established company with a strong market presence and growth potential. With a competitive price band, a significant grey market premium, and a clear plan for utilizing the funds to expand operations and reduce debt, this IPO is generating considerable excitement among investors. Whether you’re a seasoned investor or a first-time participant, Indo Farm Equipment’s solid track record and future prospects make it a compelling choice. Don’t miss out—mark your calendars for December 31 and make sure to subscribe before the window closes on January 2!
