Indo Farm Equipment IPO: Key Details to Know

The Indo Farm Equipment IPO, one of the upcoming IPOs, opens for subscription on Tuesday, December 31, 2024, and closes on Thursday, January 2, 2025.

Company Overview

Indo Farm Equipment is a well-established manufacturer of tractors and Pick & Carry Cranes with over 20 years of experience. The company also sells agricultural equipment like harvester combines, rotavators, and spare parts, though these contribute minimally to overall revenue.

Facilities and Infrastructure

The company’s facilities include advanced machinery like induction furnaces, pneumatic moulding machines, an automatic moulding line, a sand plant, and a fully equipped laboratory for metallurgy and sand testing. It also has machining, gear, press, fabrication, paint, assembly, and quality control units.

Ranbir Singh Khadwalia and Sunita Saini are the promoters of the company.

Peer Comparison

Indo Farm Equipment’s listed peers include Escorts Kubota Ltd with a P/E ratio of 36.79 and Action Construction Equipment Ltd with a P/E ratio of 47.42.

Financial Performance

The company has consistently generated profits for over 20 years. Here are its reported total income and profit after tax for recent periods:

Total Income:

• June 30, 2024: ₹755.38 million
• FY 2024: ₹3,759.53 million
• FY 2023: ₹3,718.18 million
• FY 2022: ₹3,525.21 million

Profit After Tax:

• June 30, 2024: ₹24.54 million
• FY 2024: ₹155.95 million
• FY 2023: ₹153.72 million
• FY 2022: ₹137.19 million

Price Band and Lot Size

The IPO price band is set at ₹204–₹215 per share, with a lot size of 69 shares.

Anchor Investors

Allocation to anchor investors is scheduled for Monday, December 30.

Issue Structure

The IPO includes a fresh issue of 8.6 million equity shares and an offer for sale of up to 3.5 million equity shares by promoter Ranbir Singh Khadwalia.

Objective of the IPO

Proceeds from the IPO will be used for:

1. Enhancing production capacity for Pick & Carry Cranes (₹70 crore).
2. Repayment of specific loans (₹50 crore).
3. Strengthening the capital base of its NBFC subsidiary, Barota Finance (₹45 crore).
4. General corporate purposes.

Listing and Allotment Dates

Share allotment will be finalised on Friday, January 3. Refunds will be processed on Monday, January 6, and shares will be credited to demat accounts the same day. The stock is expected to list on the NSE and BSE on Tuesday, January 7.

Lead Manager and Registrar

Aryaman Financial Services Ltd is the lead manager, and Mas Services Ltd is the registrar for the issue.

Reservation for Investors

• 50% reserved for Qualified Institutional Buyers (QIBs).
• 15% reserved for Non-Institutional Investors (NIIs).
• 35% reserved for retail investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.