Indo Farm Equipment Limited, a renowned ISO-certified manufacturer of cranes, tractors, and agricultural implements, is set to debut with its IPO offering ₹260.15 Crores. The company, located in Baddi, Himachal Pradesh, has a legacy dating back to 2000 and is recognized for its technical collaboration with Ursus (Poland). Now, Indo Farm stands as a prominent player in the manufacturing of world-class agriculture equipment.

The IPO consists of a Fresh Issue of 86.00 Lakh Shares, raising ₹184.9 Crores, and an Offer for Sale of 35.00 Lakh Shares, worth ₹75.25 Crores. The IPO opens for subscription on December 31, 2024, and will close on January 02, 2025. The allotment is expected by January 3, 2025, and the listing date is tentatively set for January 7, 2025, on both BSE & NSE.

The price band for Indo Farm Equipment IPO is set between ₹204 to ₹215 per share. At the upper price of ₹215, the company's market capitalization will be ₹977.55 Crores. The lot size is 69 shares, requiring retail investors to make a minimum investment of ₹14,835. High-Net-Worth Individuals (HNIs) must invest in 14 lots, or ₹2,07,690.

Indo Farm Equipment IPO Grey Market Premium (GMP):
The Grey Market Premium (GMP) of Indo Farm Equipment Limited IPO is currently ₹65, indicating a 30.23% potential listing gain. However, it's important to note that the GMP is based on unregulated market conditions, and should be viewed purely as an informational reference, with no guaranteed price discovery before the actual listing.

Subscription Status:
As of 11:00 AM on January 2, 2025, the Indo Farm Equipment IPO was subscribed 76.66 times, showing strong investor interest in the offer. Investors can keep track of live updates regarding the IPO subscription status on the BSE platform.

IPO Objectives:
The funds raised through the IPO will be used for the following key purposes:

1. ₹711.31 Million for expanding the manufacturing capacity of Pick & Carry Cranes.
2. ₹500 Million to repay or prepay certain borrowings.
3. ₹450 Million to augment the capital base of its NBFC Subsidiary (Barota Finance Ltd.).
4. General corporate purposes.

Indo Farm IPO Financial Overview:
Indo Farm's financials have demonstrated steady growth. For FY 2024, revenue from operations stood at ₹3,759.53 Million, and the EBITDA for the same period was ₹625.16 Million. The Profit after Tax (PAT) for FY24 was ₹155.95 Million, marking a positive trend in profitability over the years.

The P/E ratio pre-issue is 51.81x, and post-issue, it will be 62.68x, which is higher than the industry average of 42x. Despite this, the company's financial growth and market position suggest that the IPO could still be a viable option for risk-taking investors looking for potential listing gains.

IPO Review:
Given the company’s strong financial performance, growth trajectory, and the current GMP, the Indo Farm Equipment IPO is considered a good listing opportunity for investors who are seeking short-term gains. However, the higher P/E ratio compared to industry peers suggests that the investment may carry some price risk. We recommend risk-seeking investors to consider applying for the IPO, keeping in mind the potential listing gains.

The Upcoming IPOs in this week and coming weeks are  Fabtech Technologies, Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, B R Goyal.

The Current active IPO is  Indo Farm, Technichem Organics, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

For those interested in exploring more IPO opportunities, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

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