Another stirring IPO is set to enter the market, and the investors were looking forward to the news that they have secured the shares in the Rs.260.15 crore Indo Farm IPO. The company declared the final allotment status for the IPO on 3rd January 2025 after it witnessed a subscription of 229.68 times. What led to such a whopping response? And how do you check your allotment status for the Indo Farm IPO? Let’s understand in detail.
Indo Farm Equipment IPO Details:
Indo Farm Equipment Limited, established in 1994, specializes in manufacturing tractors, pick-and-carry cranes, and harvesting equipment. It operates under the brand names “Indo Farm” and “Indo Power.” Based in Baddi, Himachal Pradesh, this ISO-certified company started its manufacturing journey in 2000 and expanded its portfolio over time to become a leader in producing high-quality agricultural tractors, cranes, and implements.
The IPO of tractor manufacturer Indo Farm Equipment Ltd saw massive demand, with subscriptions soaring nearly 230 times by the end of day 3. Additionally, the subscription volume in all the three segments was overwhelming-
| Qualified institutional buyers | 242.20 times |
| Non-institutional investors | 503.83 times |
| Retail investors | 104.92 times |
Source: Mint
Indo Farm Equipment’s IPO was a book-built issue worth Rs.260.15 crore, and it is planned to be listed on both the BSE and NSE, with the listing date tentatively fixed as 7th January 2025. The bidding period for the IPO ran from 31st December 2024 to 2nd January 2025, and the price band was set at Rs.204-Rs.215 per share. The minimum lot size for investment was as follows-
| Investor Type | Lot Size | Shares | Minimum Investment (Rs.) |
| Retail Investors | 1 lot | 69 shares | 14,835 |
| sNII Investors | 14 lots | 966 shares | 2,07,690 |
| bNII Investors | 68 lots | 4,692 shares | 10,08,780 |
Source: Prospectus
Why the Overwhelming Demand of the Indo Farm IPO?
Expansion Plans:
At the upper limit, the company raised Rs.260.15 crore through the book-built issue. This included a fresh issue of 86 lakh equity shares worth Rs.184.90 crore and an offer-for-sale of 35 lakh shares amounting to Rs.75.25 crore. The funds are being raised for the following purposes-
- Expanding the company’s pick-and-carry crane manufacturing capacity by setting up a dedicated unit.
- Repaying or prepaying certain borrowings, either fully or partially.
- Investing in its NBFC subsidiary, Barota Finance Ltd., to strengthen its capital base and meet future needs.
- Covering general corporate expenses.
Indo Farm Equipment IPO GMP:
Indo Farm Equipment’s IPO showed solid performance in the grey market. As of today, 3rd December 2024, the grey market premium (GMP) for its shares is Rs.97. This means the shares are trading Rs.97 above their issue price in the unofficial market. Based on this GMP, the expected listing price for Indo Farm Equipment shares could be around Rs.312. That’s a 45% premium over the issue price of Rs.215.
Company’s Revenue Trend:
In Fiscal 2024, the company generated most of its revenue from tractor sales (52.16%) and Pick & Carry cranes (47.77%). Over the last three years, revenue from manufactured goods has steadily grown, increasing from Rs.330.87 crore in FY2022 to Rs.346.62 crore in FY2023 and further to Rs.352.46 crore in FY2024.
As of the June 2024 quarter, the company’s total revenue for the ongoing fiscal year is Rs.69.54 crore. Tractor and Pick & Carry crane sales remain key contributors to its revenue. Additionally, the total revenue of the company for FY2024 was Rs.375.23 crore.
Net Profit:
The company’s net profit for FY2024 was Rs.15.4 crore, and the figure for the quarter ending June 2024 was Rs.2.45 crore. Since the past five years, the net profit of the company has been following an upward trend; however, the growth rate has reduced over time.
What Do Investors Get If They Secure The Shares:
If you secure an allotment for the Indo Farm Equipment IPO, here’s what you can expect:
- Listing Gains:
With a grey market premium (GMP) of Rs.97, your shares could list at Rs.312, giving you a potential 45% gain over the issue price of Rs.215. The listing is tentatively set for 7th January 2025.
- Growth Potential:
The funds raised from this IPO are earmarked for exciting expansion plans. This includes increasing the company’s pick-and-carry crane manufacturing capacity, reducing debt, and strengthening its subsidiary, Barota Finance Ltd. These efforts could position the company for strong future growth.
- Steady Revenue Increase:
Indo Farm Equipment has shown consistent growth in revenue, largely driven by tractor and crane sales. In FY2024, the company reported Rs.352.46 crore in revenue. This solid performance indicates that the business is currently on a stable growth path.
How To Check The Allotment Status of Indo Farm IPO?
To check the allotment status on the BSE, you can follow the mentioned steps-
1 Open the Application Status page on the BSE website.
2 Select ‘Equity’ from the options.
3 Choose Indo Farm Equipment Limited from the dropdown menu.
4 Enter your IPO application number or PAN details.
5 Tick the ‘I am not a Robot’ box.
6 Click on the Submit button to view your allotment status.
Bottomline:
The Indo Farm Equipment IPO has generated significant interest, with a subscription rate of 229.68 times. The company is raising funds for expansion and debt reduction, which could drive future growth. With a solid revenue track record and a potential listing gain of 45%, this IPO has attracted considerable attention. Investors interested in the allotment status can easily check it through the BSE website by entering their application number or PAN details. As the IPO progresses, all eyes will be on its listing performance on 7th January 2025.
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Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
FAQ
When will the company get listed?
Indo Farm Equipment Limited will tentatively get listed on the BSE on 7th January 2024.
What is the grey market?
The grey market refers to the unofficial trading of stocks or securities before they are listed on the exchange. It allows investors to buy or sell shares based on demand and supply, often at a premium or discount to the issue price.
What is Indi Farm Equipments Limited’s net worth?
As of the quarter ending June 2024, the net worth of the company stands at Rs.342.25 crore.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
