Indo Farm Equipment IPO presents an intriguing opportunity for investors, with a book-built issue valued at ₹260.15 crores. The offering consists of a fresh issue of 0.86 crore shares, raising ₹184.90 crores, aimed at funding the company’s growth and operational requirements. Additionally, there is an offer for sale (OFS) of 0.35 crore shares, amounting to ₹75.25 crores, allowing existing shareholders to partially exit their investment. This IPO provides a mix of growth capital and liquidity for stakeholders, making it a noteworthy event for market participants keen on exploring new investment opportunities.
The IPO is open for subscription from December 31, 2024 and closes on January 02, 2025, offering investors a limited window to participate in this opportunity. The price band is set between ₹204 and ₹215 per share, providing flexibility for bidders within this range. Investors can apply in multiples of the lot size of 69 shares, making the minimum investment more accessible. With its structured bidding process and competitive pricing, this IPO is set to attract attention from retail and institutional investors alike.
Refer to Indo Farm Equipment IPO RHP for detailed information.
Indo Farm Equipment IPO Details
| IPO Date | December 31, 2024 to January 02, 2025 | ||
| Listing Date | 07 January, 2025 | ||
| Face value | ₹10 per share | ||
| Price band | ₹204 to ₹215 per share | ||
| Lot size | 69 Shares | ||
| Total Issue Size | 1,21,00,000 shares (aggregating up to ₹260.15 Cr) | ||
| Fresh Issue | 86,00,000 shares (aggregating up to ₹ 184.90 Cr) | ||
| Offer for Sale | 35,00,000 shares of ₹10 (aggregating up to ₹75.25 Cr) | ||
| Issue Type | Book Built Issue IPO | ||
| Listing At | BSE, NSE | ||
| Share Holding Post Issue | 4,80,51,600 shares |
Indo Farm Equipment IPO Lot Size calculator
| Application | Lots | Share | Amount |
| Retail (Min) | 1 | 69 | ₹14,835 |
| Retail (Max) | 13 | 897 | ₹1,92,855 |
| S-HNI (Min) | 14 | 966 | ₹2,07,690 |
| S-HNI (Max) | 67 | 4,623 | ₹9,93,945 |
| BS-HNI | 68 | 4692 | ₹10,08,780 |
Indo Farm Equipment IPO Distribution
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
About Indo Farm Equipment Company
Indo Farm Equipment Limited, started in 1994, makes tractors, pick-and-carry cranes, and other harvesting equipment.
The company runs two brands, Indo Farm and Indo Power, and exports to countries like Nepal, Syria, Sudan, Bangladesh, and Myanmar.
Their tractors range from 16 HP to 110 HP, and cranes can lift from 9 to 30 tons. The factory in Baddi, Himachal Pradesh, covers 127,840 sq. meters with a foundry, machine shop, and assembly units. Every year, they can produce 12,000 tractors and 1,280 cranes.
The company is also expanding, with plans to build a new unit near the current factory, adding capacity for 3,600 more cranes annually.
As of June 30, 2024, they had 938 employees.
Key Strengths:
- Acceptance in many countries and by financial institutions
- Well-equipped and established factory setup
- Experienced and qualified management team
- In-house NBFC for financing
- Wide range of products
Indo Farm Equipment Company Finances
Amount in ₹ Crore
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Borrowing | 245.36 | 270.54 | 280.65 | 275 |
| Assets | 644.27 | 647.95 | 622.84 | 619.83 |
| Revenue | 75.54 | 375.95 | 371.82 | 352.52 |
| Profit after tax | 2.45 | 15.6 | 15.37 | 13.72 |
| Net Worth | 342.25 | 317.06 | 290.37 | 274.8 |
Indo Farm Equipment IPO – Buy or Not
Since the bidding for this IPO has not yet started, it is difficult to make a definitive decision on whether to apply. Looking at the company’s fundamentals, they appear to be average, neither too strong nor too weak. The Earnings Per Share (EPS) ranges between ₹3.95 and ₹2.04, indicating some level of profitability. However, the Price-to-Earnings (P/E) ratio, which falls between 54.39 and 105.25, is on the higher side. This suggests that the stock may be slightly overvalued compared to its earnings, though it’s essential to compare this with the industry average for better clarity.
For those considering long-term investment, the company may have potential if proper research is done and if it aligns with your financial goals. However, given the current valuation metrics, it would be wise to proceed cautiously. Using a proper stop-loss (SL) strategy is highly recommended to manage risks effectively in case the stock underperforms after listing.
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