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The IPO comprises a fresh issue of 86 lakh equity shares and an offer for sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.
Indo Farm Equipment specialises in manufacturing tractors, pick-and-carry cranes, and other agricultural equipment.
Indo Farm Equipment IPO: The company has launched its Rs 260.15 crore initial public offering (IPO) on Tuesday, December 31. The shares are priced between Rs 204 and Rs 215 each, with a minimum application size of 69 equity shares and in multiples beyond that.
Indo Farm Equipment Limited IPO Size
The IPO comprises a fresh issue of 86 lakh equity shares and an offer for sale (OFS) of 35 lakh shares by promoter Ranbir Singh Khadwalia.
Indo Farm Equipment Limited IPO Price
Indo Farm Equipment has fixed the price band for its IPO at Rs 204 to Rs 215 per share.
Indo Farm Equipment Limited IPO Date
The Rs 260-crore IPO will open for public subscription on December 31, 2024, and close on January 2, 2025. Bidding for anchor investors will take place on December 30.
Indo Farm Equipment IPO GMP Today
Market observers report that Indo Farm Equipment’s current grey market premium (GMP) stands at Rs 80, reflecting a 37% premium over the issue price.
Indo Farm Equipment Collects Rs 78 Crore from Anchor Investors
Indo Farm Equipment on Monday said it had mobilised a little over Rs 78 crore from anchor investors a day before its initial share sale opened for public subscription.
According to a circular uploaded on BSE’s website, anchor investors included Negen Undiscovered Value Fund, Niveshaay Hedgehogs, Rajasthan Global Securities, Subham Capital, India Equity Fund I, Saint Capital Fund, and Vikasa India EIF I Fund—Share Class P.
According to a circular, Indo Farm Equipment has allotted 36.30 lakh shares to 11 entities at Rs 215 per equity share, which is also the upper end of the price band. This aggregates the transaction size to Rs 78.04 crore.
Proceeds from the fresh issue will be used to set up a new dedicated unit for expansion of the company’s pick & carry cranes manufacturing capacity, payment of debt, investment in the company’s NBFC subsidiary Barota Finance for financing the augmentation of its capital base to meet its future capital requirements.
Proceeds to Drive Expansion and Debt Repayment
Funds raised through the fresh issue will be used to set up a new unit dedicated to increasing the company’s pick-and-carry crane manufacturing capacity. Additionally, the proceeds will go toward debt repayment and investments in Barota Finance, the company’s NBFC subsidiary, to enhance its capital base for future requirements.
Investor Allocation and Listing Details
The issue allocates 50% of the shares to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to non-institutional investors. Aryaman Financial Services is the sole book-running lead manager for the IPO. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Manufacturer of Tractors and Farm Equipment
Indo Farm Equipment specialises in manufacturing tractors, pick-and-carry cranes, and other agricultural equipment. At the upper end of the price band, the IPO is expected to give the company a market capitalisation of over Rs 1,000 crore.
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