Indo Farm Equipment IPO booked over 17 times on Day 1; check issue size, price band & more

The initial public offering of Indo Farm Equipment Limited was fully subscribed within hours of launch on Tuesday, December 31, amid high demand across investor categories.

The mainboard issue was booked more than 17 times at the end of bidding at 5 pm on the first day.

The tractor and crane manufacturer aims to raise ₹260.15 crore from investors through the public offer. Indo Farm Equipment IPO is open for subscription till January 2, 2025.

According to the stock exchange data, the IPO received bids for nearly 15 crore shares against 84.7 lakh shares on offer, leading to an overall subscription of 17.7 times.

The subscription was led by Non-Institutional Investors (NIIs), who placed bids for more than 5.18 crore shares against their quota of 18.15 lakh shares. The NIIs’ category was booked 28.5 times. The retail investors placed bids for over 7.85 crore shares against the allocation of 42.35 lakh shares, leading to a subscription of 18.5 times.

The Qualified Institutional Buyers (QIBs) applied for 1.96 crore equity shares against 24.2 lakh shares set aside for the category. The QIBs booked their category 8.1 times.

In the pre-bid round, Indo Farm Equipment mobilised ₹78 crore from anchor investors. The company allotted 36.3 lakh shares to 11 fund schemes at a price of ₹215 per equity share, the upper end of the price band.

Negen Undiscovered Value Fund, Rajasthan Global Securities, Niveshaay Hedgehogs, Subham Capital, India Equity Fund I, Saint Capital Fund and Vikasa India EIF I Fund - Share Class P, are among the anchor investors.

Indo Farm Equipment IPO details

The ₹260.15-crore Indo Farm Equipment IPO comprises a fresh issue of 86 lakh equity shares, worth up to ₹184.9 crore, and an offer-for-sale (OFS) component of 35 lakh shares, amounting to ₹75.25 crore.

The company has set the IPO price band at ₹204 to ₹215 per share. The minimum lot size is 69 shares for retail investors, requiring a minimum investment of ₹14,835.

Aryaman Financial Services Ltd is the book-running lead manager and Mas Services Limited is the IPO registrar.

The IPO share allotment status is scheduled to be finalised on January 3, 2025. The company will initiate refunds and transfer of shares to the Demat accounts on January 7.

Shares of Indo Farm Equipment are tentatively scheduled to be listed on the NSE and BSE on January 7, 2025.

Indo Farm Equipment IPO: Use of proceeds

According to Indo Farm Equipment Ltd RHP, the company will utilise ₹71.1 crore of the IPO proceeds to set up a new dedicated unit to increase the manufacturing capacity of Pick & Carry Cranes. The company sells products under the Indo Farm and Indo Power brands. It will use ₹50 crore for repayment or pre-payment, in full or part, of certain borrowings availed by the company. The company has proposed to invest ₹45 crore in its NBFC arm, Barota Finance Limited, for financing the augmentation of its capital base to meet its future capital requirements.

Indo Farm Equipment Limited is an integrated producer of tractors and pick and carry cranes. It also manufactures farm equipment such as harvester combines, rotavators, and other related spares and components.

The company also exports products which account for around 7% of its sales revenue. The company sells products in Bangladesh, Nepal, Myanmar, Sudan and Syria, among other countries.

The company posted a total income of ₹75.53 crore for the April-June period of FY25. Its net profit stood at ₹2.45 crore during the same quarter.

Its total income was ₹375.95 crore in the financial year ended on March 31, 2024, compared to ₹371.81 crore in the previous financial year. In FY24, the company’s net profit remained nearly flat at ₹15.6 crore against ₹15.37 crore in the preceding fiscal.