Indo Farm Equipment Limited IPO Day 2 Live Updates: Key Highlights, Subscription Status, and Insights

IPO Day 1 Subscription Status 

(December 31, 2024, End of Day)

By the first day of bidding, the Indo Farm Equipment IPO subscribed 17.87 times the total shares available. 

• Non-institutional investors (NIIs) subscribed to 28.68 times the allocated portion. 
• While Retail investors subscribed to 18.82 times the shares set aside for them. 
• Qualified institutional buyers (QIBs) saw a 8.10 times subscription rate.

IPO Details

• The Indo Farm Equipment IPO opened for subscription on December 31, 2024, and will remain open until January 2, 2025. 
• The issue consists of a fresh issue of 0.86 crore shares worth Rs 184.90 crores and an offer for sale of 0.35 crore shares worth Rs 75.25 crores.
• The allotment of shares for the IPO is anticipated to be finalized on Friday, January 3, 2025. Trading of Indo Farm Equipment shares is scheduled to commence on the BSE and NSE, with a tentative listing date of Tuesday, January 7, 2025.
• The IPO price band has been set between ₹204 and ₹215 per share. 
• Investors can apply with a minimum lot size of 69 shares, requiring a retail investment of ₹14,835. For sNII , the minimum application size is 14 lots (966 shares) at an investment of ₹2,07,690. Meanwhile, bNII must apply for at least 68 lots (4,692 shares), amounting to ₹10,08,780.
• Aryaman Financial Services Limited serves as the book-running lead manager for this IPO, with Mas Services Limited appointed as the registrar.

Use of Proceeds

The proceeds from the Net Fresh Issue will be utilized for several purposes, including establishing a new dedicated unit to expand the manufacturing capacity for pick-and-carry cranes, repaying or partially pre-paying certain borrowings undertaken by the company, further investing in the NBFC subsidiary, Barota Finance Ltd., to strengthen its capital base for future requirements, and addressing general corporate purposes.

Indo Farm Equipment Business Overview

Founded in 1994, Indo Farm Equipment Limited manufactures tractors, pick-and-carry cranes, and other harvesting equipment. Operating under the brands Indo Farm and Indo Power, the company exports its products to countries such as Nepal, Syria, Sudan, Bangladesh, and Myanmar. Indo Farm produces tractors ranging from 16 HP to 110 HP and cranes with capacities of 9 to 30 tons. Its 127,840-square-meter facility in Baddi, Himachal Pradesh, includes an integrated foundry, machine shop, and assembly units, with an annual capacity of 12,000 tractors and 1,280 cranes. To support future growth, the company has acquired additional land for a new crane manufacturing unit, set to increase annual capacity by 3,600 units.

 Financial Highlights

• Revenue increased by 1.21% from Rs 370.76 crore in FY23 to Rs 375.23 crore in FY24.
• Profit after tax (PAT) increased by 1.50% between the financial year ending March 31, 2023 and March 31, 2024, from Rs 15.37 crore to Rs 15.60 crore.