Indo Farm Equipment IPO Thrives: Achieves Impressive 21x Subscription as GMP Surges 44% – Key Highlights

Indo Farm Equipment IPO subscription breakdown with categories such as Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), along with their subscription times.
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The Indo Farm Equipment IPO has captured significant attention in the market, with strong participation from investors and a promising outlook for its growth and expansion. Here’s everything you need to know about the IPO, including subscription details, grey market premium (GMP), and the company’s objectives.

IPO Subscription Status

The subscription period for Indo Farm Equipment’s Initial Public Offering (IPO) began on December 31, 2024, and it will end on January 2, 2025. By the second day of the subscription period, the IPO had been oversubscribed 21.07 times due to the tremendous response.

The breakdown of subscriptions is as follows:

Investor CategorySubscription (Times)
Qualified Institutional Buyers (QIBs)8.11
Non-Institutional Investors (NIIs)36.70
Retail Individual Investors (RIIs)21.23
Total21.70

The issue has a price band of ₹204-₹215 per share and a lot size of 69 shares.

Grey Market Premium (GMP)

When Indo Farm Equipment became public, the grey market responded strongly. The GMP was 44.19% more than the maximum price range of ₹215 on January 1, 2025, at ₹95. With a projected listing price of ₹310 per share, this presents investors with a profitable opportunity.

Anchor Investors

Leading anchor investors, such as Rajasthan Global Securities, Niveshaay Hedgehogs, and Negen Undiscovered Value Fund, contributed more than ₹78 crore to Indo Farm Equipment prior to the IPO debut. At the top price range of ₹215 per share, 36.30 lakh shares were distributed.

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Objectives of the IPO

The business plans to use the money raised from the new issuance for a number of important initiatives:

Increasing Manufacturing Capabilities: Setting up a special facility to increase pick-and-carry crane production capacity.

Repayment of Debt: Reducing the financial load through the repayment of certain loans.

NBFC Subsidiary Investment: Increasing Barota Finance’s capital base to meet future demands.

Supporting the expansion and operations of the company as a whole is one of the general corporate purposes.

Overview Of Company

Established in 1994, Indo Farm Equipment is a prominent producer of agricultural equipment, including pick-and-carry cranes and tractors. Indo Farm and Indo Power are the two brands under which the business operates.

Indo Farm Equipment’s salient features include:

  • Product Range: Products include cranes (9 to 30 tonnes) and tractors (16 HP to 110 HP).
  • Exports Market: Bangladesh, Myanmar, Sudan, Syria, and Nepal are export markets.
  • Manufacturing Facility: The 127,840 square metre manufacturing facility, which includes a foundry, machine shop and assembly facilities, is situated in Baddi, Himachal Pradesh.

Allotment and Listing Schedule

The timeline for the Indo Farm Equipment IPO is as follows:

  • Basis of Allotment Finalization: January 3, 2025
  • Credit of Shares to Demat Accounts: January 6, 2025
  • Listing Date on BSE and NSE: January 7, 2025
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Conclusion

Strong investor demand, a solid product portfolio, and smart expansion ambitions make Indo Farm Equipment’s initial public offering (IPO) a viable investment option. With favourable broking evaluations and a GMP showing notable listing gains, the IPO is well-positioned to provide investors with value.

Before making a choice, investors are urged to thoroughly consider their investment horizon and risk tolerance. The firm is a tempting addition to a diverse investment portfolio due to its development trajectory and advantageous industry dynamics.

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