Indo Farm Equipment IPO: Comprehensive Overview
The Indo Farm Equipment IPO is set to open on December 31, 2024, and close on January 2, 2025. This main-board IPO seeks to raise ₹260.15 crores through a combination of a fresh issue of ₹184.90 crores and an offer for sale of 3,500,000 equity shares. The price band for the IPO is ₹204 to ₹215 per share.
Indo Farm Equipment IPO Key Details
| Details | Information |
|---|---|
| IPO Open Date | December 31, 2024 |
| IPO Close Date | January 2, 2025 |
| Face Value | ₹10 per equity share |
| Price Band | ₹204 to ₹215 per share |
| Issue Size | ₹260.15 crores |
| Fresh Issue | ₹184.90 crores |
| Offer for Sale | 3,500,000 equity shares |
| Issue Type | Book Built Issue |
| Listing Exchange | BSE & NSE |
| Retail Investor Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
Indo Farm Equipment IPO Market Lot
The minimum market lot for the IPO is 69 shares, amounting to ₹14,835 per application. Retail investors can apply for up to 13 lots.
| Category | Lot Size | Shares | Amount (₹) |
|---|---|---|---|
| Retail Minimum | 1 | 69 | ₹14,835 |
| Retail Maximum | 13 | 897 | ₹1,92,855 |
| S-HNI Minimum | 14 | 966 | ₹2,07,690 |
| B-HNI Minimum | 68 | 4,692 | ₹10,08,780 |
Indo Farm Equipment IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | December 31, 2024 |
| IPO Close Date | January 2, 2025 |
| Allotment Finalization | January 3, 2025 |
| Refunds Initiated | January 6, 2025 |
| Credit to Demat Accounts | January 6, 2025 |
| Listing Date | January 7, 2025 |
About Indo Farm Equipment
Founded in 1994, Indo Farm Equipment Limited is a reputed manufacturer of tractors, pick-and-carry cranes, and agricultural machinery. The company operates under two major brands: Indo Farm and Indo Power.
Key Highlights
- Wide Product Range: Produces tractors (16-110 HP) and cranes (9-30 tons).
- Global Reach: Exports to Nepal, Syria, Sudan, Bangladesh, and Myanmar.
- Manufacturing Capacity: 12,000 tractors and 720 cranes annually.
- Advanced Facilities: A 127,840 sq. meter factory in Baddi, Himachal Pradesh, featuring a foundry, machine shop, and assembly units.
The company’s experienced management team and in-house NBFC setup provide a competitive edge, ensuring sustained growth and market expansion.
Financial Performance
| Year | Revenue (₹ Cr) | Expenses (₹ Cr) | Profit After Tax (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|---|
| 2022 | ₹352.08 | ₹333.34 | ₹13.72 | ₹619.83 |
| 2023 | ₹371.82 | ₹349.57 | ₹15.37 | ₹622.84 |
| 2024 | ₹375.95 | ₹352.06 | ₹15.60 | ₹647.95 |
| June 2024 | ₹75.54 | ₹71.79 | ₹2.45 | ₹644.27 |
Indo Farm Equipment IPO Valuation
| KPI | Values |
|---|---|
| ROE | 5.13% |
| ROCE | 8.96% |
| EBITDA Margin | 16.66% |
| Debt-to-Equity Ratio | 0.97 |
| EPS | ₹4.15 (Basic) |
| NAV | ₹86.75 |
Objectives of the IPO
The funds raised through the IPO will be used for:
- Expanding Pick-and-Carry Crane Manufacturing Capacity.
- Repayment or Prepayment of Borrowings.
- Investments in Barota Finance Ltd. (NBFC subsidiary) to augment its capital base.
- General Corporate Purposes.
Peer Comparison
| Company | EPS (₹) | PE Ratio | RoNW (%) | NAV (₹) |
|---|---|---|---|---|
| Escorts Kubota Limited | 58.85 | 54.95 | 7.78% | 620.19 |
| Action Construction Equipment | 14.41 | 46.71 | 19.37% | 77.27 |
Promoters of Indo Farm Equipment IPO
- Mr. Ranbir Singh Khadwalia
- Ms. Sunita Saini
How to Apply for Indo Farm Equipment IPO?
You can apply for the IPO through:
- ASBA via Bank Account (online or offline).
- UPI-enabled Stock Brokers.
- Offline forms through your stockbroker.
IPO Review and Recommendation
With a strong revenue growth trajectory, expanding global footprint, and consistent profitability, Indo Farm Equipment Limited is poised for long-term growth. Investors seeking steady returns should consider this IPO, especially given its plans for expansion and reduction of debt.