Indo Farm Equipment IPO: 10 key points to consider before ₹260 crore offer opening

Indo Farm Equipment IPO: Truck manufacturer Indo Farm Equipment's initial public offering (IPO) will open for public subscription on Tuesday, December 31. The price band has been fixed at ₹204 to ₹215 per share for the ₹260.15 crore book-built issue. The company's shares will be listed on the stock exchanges on Tuesday, January 7.

Indo Farm Equipment IPO: 10 key points to know

• Indo Farm Equipment IPO subscription period: The initial share sale will go live on December 31 and conclude on January 2.
• IPO type: Indo Farm Equipment IPO is a book-built issue worth ₹260.15 crore.
• IPO offer structure: The issue is a mix of fresh issuance worth ₹184.9 crore and an offer for sale of ₹75.25 crore.
• Indo Farm Equipment IPO price band: The company has set a price range of ₹204-₹215 per equity share.
• Reservation: Half of the issue is reserved for qualified institutional buyers (QIBs), 35% for retail individual investors and remaining 15% for non-institutional investors.
• Indo Farm Equipment IPO lot size: An investor can bid for a minimum of 69 shares or one lot, needing an investment of ₹14,835.
• Objectives: The funds generated from the fresh issue will be used to set up a dedicated unit to expand the pick-and-carry crane production facility, pay debt, invest in an NBFC subsidiary, and for general corporate purposes.
• Book-running lead manager and registrar: The book-running lead manager for the IPO is Aryaman Financial Services, while Mas Services Ltd is the registrar.
• Allotment date: The basis of allotment is expected to be finalised on Friday, January 3.
• Listing date: Shares of Indo Farm Equipment will be listed on the stock exchanges on Tuesday, January 7.

About Indo Farm Equipment

Established in 1994, Indo Farm Equipment manufactures tractors and pick-and-carry cranes. The company also sells farm equipment like harvester combines and rotavators.

Indo Farm Equipment has a manufacturing capacity of 12,000 tractors and 1,280 pick & carry cranes per annum.

Between FY22 and FY24, the company's revenue from operations rose at a compount annual growth rate (CAGR) of 3.23%, while profit after tax rose 6.62% during the same period. Meanwhile, the Indian agricultural machinery market, which is dominated by tractors, is expected to grow at a CAGR of 8.5% in the next five years to reach $25.15 billion by 2029.

Indo Farm Equipment financials

The company had posted a 1.2% rise in its revenue from operations to ₹375.23 crore in the financial year 2023-24 against ₹370.75 crore revenue in the previous year.

The net profit increased 1.4% to ₹15.59 crore in FY24 compared to ₹15.37 crore in FY23.

Revenue and net profit were reported at ₹74.95 crore and ₹2.45 crore, respectively, for the first quarter of FY25.