Upcoming IPO: Indo Farm Equipment IPO date of subscription is scheduled for Tuesday, December 31, and will close on Thursday, January 2, as per red herring prospectus (RHP). The allocation to anchor investors for the Indo Farm Equipment IPO is scheduled to take place on Monday, December 30. According to sources, the company is expected to reveal the IPO price band mostly tomorrow.
Tentatively, Indo Farm Equipment IPO basis of allotment of shares will be finalised on Wednesday, January 24, and the company will initiate refunds on Thursday, January 25, while the shares will be credited to the demat account of allottees on the same day following refund. Indo Farm Equipment share price is likely to be listed on BSE and NSE on Monday, January 29.
Established in 1994, Indo Farm Equipment Limited specializes in the production of Tractors, Pick & Carry Cranes, and various harvesting machinery. The firm operates under two brand names: Indo Farm and Indo Power, and exports its products to countries including Nepal, Syria, Sudan, Bangladesh, and Myanmar.
The company produces tractors ranging from 16 HP to 110 HP and pick & carry cranes with capacities between 9 and 30 tons. Their manufacturing facility, located in Baddi, Himachal Pradesh, covers an area of 127,840 square meters and comprises a foundry, machine shop, and assembly units. The firm has the capacity to manufacture 12000 tractors and 1,280 Pick & Carry Cranes each year. Spanning 127,840 square meters of industrial space, the facility in Baddi, Himachal Pradesh, includes a captive foundry, machine shop, as well as fabrication and assembly units for tractors, pick & carry cranes, and other equipment.
As per the RHP, the company’s listed peers are Escorts Kubota Ltd (with a P/E of 36.79), and Action Construction Equipment Ltd (with a P/E of 47.42).
The company’s operating revenue as of Fiscal 2024 was Rs. 375.2 crores, with a PAT of Rs. 15.5 crores.
Indo Farm Equipment IPO details
The IPO of the company based in Chandigarh includes a Fresh Issue of up to 8.6 million Equity Shares and an Offer for Sale of up to 3.5 million Equity Shares by Ranbir Singh Khadwalia, the Promoter Selling Shareholder.
The company has conducted a Pre-IPO Placement of 1.9 million Equity Shares at a price of Rs. 185 per share, totaling Rs. 35.1 crores. As a result, the size of the Fresh Issue has been decreased from 10.5 million Equity Shares to 8.6 million Equity Shares.
The company intends to use the net proceeds from the Fresh Issue to establish a new dedicated facility for increasing the manufacturing capacity of Pick & Carry Cranes (Rs. 70 crores), to repay or pre-pay part or all of specific borrowings obtained by the company (Rs. 50 crores), to further invest in its NBFC Subsidiary (Barota Finance Ltd.) to enhance its capital base for future requirements (Rs. 45 crores), and the remaining amount for general corporate purposes.
Aryaman Financial Services Limited serves as the book running lead manager for the issue.
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