Upcoming IPO: Indo Farm Equipment IPO Date, Price, GMP
Indo Farm Equipment IPO opens for subscription on December 31 and ends on January 2. Allocation for anchor investors will happen on December 30. The firm produces tractors and cranes, with a manufacturing facility in Himachal Pradesh.
The final IPO of December and for the year will open the books for public subscription on December 31, 2024. Indo Farm Equipment is one of those companies that have been well known and efficient in making tractors and pick & carry cranes. It has great investment opportunities. Here's everything you need to know about the IPO in detail.
🚜 Indo Farm Equipment Limited IPO
🗓️Date: 31 Dec - 2 Jan
🏷️Price Band: ₹204 - ₹215
📦Market Lot: 69 Shares
💰Application Amount: ₹14,835
📏Size: ₹260.15 Cr Approx
👦Retail Portion: 35%
📃 Retail Form: 61,377
📄HNI Small Form: 626
📄HNI Big Form: 1,253
🏷️Face Value: ₹10
Indu Farm Equipment Key Dates and Timeline
Indu Farm Equipment IPO Details
The IPO comprises a fresh issue of 86 lakh shares and an offer-for-sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia. So far, the company has mopped up Rs 35.15 crore through a pre-IPO placement.
Utilization of Proceeds
The company is looking to scale up its pick & carry cranes manufacturing capacity by 3,600 units annually. It has recently acquired industrial land for this purpose near its existing facility in Baddi, Himachal Pradesh.
Financial Performance
- FY 2023: Revenue - Rs 370.7 crore; Net Profit - Rs 15.4 crore
- FY 2024: Revenue - Rs 375.2 crore; Net Profit - Rs 15.6 crore
- Q1 FY 2025: Revenue - Rs 75 crore; Net Profit - Rs 2.45 crore
The company's financials show stable performance with moderate growth in revenue and profitability.
Competitive Landscape
Indo Farm Equipment competes with prominent players like:
- Action Construction Equipment
- Escorts Kubota
It has a manufacturing facility in Baddi, Himachal Pradesh, with an annual capacity of producing 12,000 tractors and 1,280 pick & carry cranes.
Investment Highlights
Established Market Position: The company's strong manufacturing capacity caters to tractors (16 HP to 110 HP) and cranes (9 tons to 30 tons).
Strategic Expansion Plans: The proceeds from the new issuance will be used for expansion in the high-demand crane manufacturing business.
Strong Financial Stability: Steady profitability and revenue growth are indicators of sound financial stability.
Parent Company's Support: The promoter's experience and strategic decisions make the venture more credible.
Attractive Pricing: The price band of Rs 185 per share offers a competitive valuation vis-à-vis peers.
Risks to Consider
Modest Profit Growth: Net profit margin increase may raise a red flag among some investors.
High Dependence on a Single Facility: Baddi is a singular production facility of the company.
Competitive Market: Competition with existing brands poses challenges.
Sectoral Risks: Revenue would decline when the agricultural sector faced unfavourable conditions
Company Overview
Indo Farm Equipment, Chandigarh-based company, is a leading manufacturer of tractors and pick & carry cranes. The company has established itself as a leader in its niche and caters to both domestic and international markets. Its tractors are available in the range of 16 HP to 110 HP, catering to a broad range of agricultural activities. The pick-and-carry cranes are also there in the range of 9 tons to 30 tons, catering to the industrial and construction sectors.
Diversified into financing solutions with Barota Finance, the group's subsidiary, in the name of credit for small and medium businesses. This further secures its business model while bringing in stable streams of revenue.
The Indo Farm Equipment IPO is a very promising investment opportunity, especially when considering strategic expansion plans, sound financial stability, and well-established market presence. With shares set to debut on January 7, 2025, this IPO is an excellent opportunity for investors looking to diversify their portfolios with exposure to the agricultural and construction equipment sectors.
Investors should, however, weigh the risks and benefits carefully and consider their long-term investment goals before participating.
FAQs About Indo Farm Equipment IPO
1. What is the Indo Farm Equipment IPO?
The Indo Farm Equipment IPO is an initial public offering by the company to raise funds through a combination of a fresh issue of shares and an offer-for-sale by its promoter. The IPO aims to support manufacturing expansion, repay debt, and invest in its NBFC subsidiary.
2. When will the Indo Farm Equipment IPO open and close for subscription?
- Opening Date: December 31, 2024
- Closing Date: January 2, 2025
3. What is the price band for the Indo Farm Equipment IPO?
The expected price band for the IPO is Rs 215 per share.
4. How many shares are being offered in this IPO?
A total of 1.21 crore shares will be offered, including:
- Fresh Issue: 86 lakh shares
- Offer for Sale: 35 lakh shares
5. What will the company use the funds raised through the IPO for?
The funds will be utilized for:
- Expanding manufacturing capacity: Rs 70.07 crore
- Repaying debt: Rs 50 crore
- Investing in NBFC subsidiary Barota Finance: Rs 45 crore
- General corporate purposes
6. When will Indo Farm Equipment shares be allotted and listed?
- Allotment Finalization: January 3, 2025
- Listing Date: January 7, 2025
7. Who are Indo Farm Equipment's competitors?
The company's key competitors include:
- Action Construction Equipment
- Escorts Kubota
8. Where is Indo Farm Equipment's manufacturing facility located?
The company operates its manufacturing plant in Baddi, Himachal Pradesh, with an annual production capacity of:
- Tractors: 12,000 units
- Pick & Carry Cranes: 1,280 units
9. How has Indo Farm Equipment performed financially?
- FY 2023: Revenue - Rs 370.7 crore; Net Profit - Rs 15.4 crore
- FY 2024: Revenue - Rs 375.2 crore; Net Profit - Rs 15.6 crore
- Q1 FY 2025: Revenue - Rs 75 crore; Net Profit - Rs 2.45 crore
10. What are the risks of investing in this IPO?
- Modest profit growth
- High dependence on a single production facility
- Competitive market environment
- Sectoral risks due to agricultural dependence
11. Who is the lead manager for this IPO?
Aryaman Financial Services is the sole book-running lead manager for the Indo Farm Equipment IPO.
12. Has the company raised funds before the IPO?
Yes, Indo Farm Equipment raised Rs 35.15 crore through pre-IPO placements, allotting shares to various institutional and corporate investors at Rs 185 per share.
13. What industries does Indo Farm Equipment cater to?
The company serves:
- Agriculture: With a range of tractors (16 HP to 110 HP)
- Construction and Industrial Sectors: With pick & carry cranes (9 tons to 30 tons)
14. Why is Indo Farm Equipment expanding its manufacturing capacity?
The expansion is aimed at increasing the production of pick & carry cranes by 3,600 units annually, meeting growing demand in industrial and construction sectors.
15. Is this IPO a good investment opportunity?
Indo Farm Equipment's IPO offers an attractive valuation, stable financials, and strategic growth plans. However, investors should assess their risk appetite and market conditions before investing.
