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Indo Farm Equipment IPO subscribed 227.57 times on Day 3. Check GMP and other details
Team Finance Saathi
02/Jan/2025
What's covered under the Article:
- Indo Farm Equipment IPO opens on December 31, 2024, with 86.00 lakh shares.
- GMP is showing a potential listing gain of 30.23%.
- Allotment for the IPO is scheduled for January 3, 2025.
Indo Farm Equipment IPO opens on December 31, 2024, offering 86.00 lakh shares in the price band of ₹204 to ₹215 per share, with a total issue amount of ₹260.15 Crores. The subscription period ends on January 2, 2025, and allotment is expected to be finalized on January 3, 2025. The shares will be listed on BSE and NSE, with a tentative listing date of January 7, 2025.
Company Overview
Indo Farm Equipment Limited is a distinguished ISO-certified manufacturer of cranes, tractors, and various agricultural implements. Established in 2000 with a technical collaboration with Ursus (Poland), Indo Farm is a leading name in the agriculture machinery industry.
Subscription and Investment Details
The IPO offers shares at a price range of ₹204 to ₹215 per share, with a market capitalization of ₹977.55 Crores at the higher price band. The lot size is set at 69 shares, requiring a minimum investment of ₹14,835 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment is 14 lots (966 shares), amounting to ₹2,07,690.
Subscription Status and Allotment
As of January 2, 2025, the Indo Farm Equipment IPO was subscribed 227.57 times on its final day of subscription. The IPO allotment will be available on January 3, 2025, and investors can check their allotment status by visiting the registrar’s website.
Objectives of Indo Farm Equipment IPO
The net proceeds from the IPO will be utilized for the following objectives:
- ₹711.31 Million for setting up a new Dedicated Unit to expand the Pick & Carry Cranes manufacturing capacity.
- ₹500.00 Million for repayment or prepayment of certain borrowings.
- ₹450.00 Million for investment in its NBFC Subsidiary (Barota Finance Ltd.) to augment its capital base.
- General corporate purposes.
Financial Performance and Valuation
Indo Farm Equipment has shown steady growth in revenues, with ₹3,759.53 Million in FY2024 and Profit After Tax (PAT) of ₹155.95 Million. The EBITDA for FY2024 was ₹625.16 Million. The pre-issue EPS is ₹4.15, and the post-issue EPS is ₹3.43. The P/E ratio stands at 51.81x (pre-issue) and 62.68x (post-issue), compared to the industry P/E ratio of 42x, indicating that the IPO is fully priced.
Indo Farm Equipment IPO Review
Based on its financial performance and valuation, the Indo Farm Equipment IPO is fully priced. However, the Grey Market Premium (GMP) of ₹65, representing a potential 30.23% listing gain, suggests significant interest in the IPO. Risky investors may find this IPO appealing, given the company’s growth prospects in the agricultural machinery sector.