Indo Farm Equipment IPO to open on Dec 31: GMP, issue details, 10 key things to know before subscribing to the issue

Indo Farm Equipment IPO Opens for subscription on Tuesday, 31 December. Indo Farm Equipment is a well-established manufacturer of tractors and pick and carry cranes with over two decades of experience. The company also sells various agricultural equipment including harvester combines, rotavators and other related spare parts and components, which collectively have minimal impact on the overall revenue of the business.

The company’s facilities include induction furnaces, pneumatic molding machines, an automated molding line, a sand plant, a fully equipped metallurgy and sand testing laboratory, as well as machining, gear, press, fabrication, paint, assembly, quality and utility rooms. Are.

Ranbir Singh Khadwalia and Sunita Saini are the promoters of the company.

As per the Red Herring Prospectus (RHP), the company’s listed counterparts 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 has established itself as a profit generating entity with a consistent record of over twenty years. For the period ending June 30, 2024, and fiscal years ending March 31, 2024, 2023 and 2022, the firm reported total income of 755.38 million, 3,759.53 million, 3,718.18 million, and 3,525.21 million respectively.

Its profit after tax for these periods was 24.54 million, 155.95 million, 153.72 million, and 137.19 million respectively.

Here are 10 key things to know about Indo Farm Equipment IPO

Indo Farm Equipment IPO Date: The issue opens for subscription on Tuesday, December 31 and closes on Thursday, January 2.

Indo Farm Equipment IPO Price Band: The price of the issue has been fixed within the range of the band from 204 Per equity share of face value Rs 215 10.

Indo Farm Equipment IPO Lot Size: The lot size of the issue is 69 equity shares and in multiples of 69 equity shares thereafter.

Anchor Investors: The allotment to anchor investors for Indo Farm Equipment IPO is scheduled to take place tomorrow (Monday, December 30).

Indo Farm Equipment IPO Details: The Chandigarh-based company’s IPO comprises a fresh issue of 8.6 million equity shares and an offer for sale (OFS) of 3.5 million equity shares from promoter selling shareholder Ranbir Singh Khadwalia.

Indo Farm Equipment IPO Objectives: The company intends to use the net proceeds from the newly issued shares to set up a dedicated facility designed to increase the production capacity of pick and carry cranes. 70 crore), to repay or settle a part or all of the specific loans availed by the company ( 50 Crore), to increase investment in its NBFC subsidiary (Barota Finance) to strengthen its capital base for upcoming requirements ( 45 crore), and allocating the remaining amount for general corporate purposes.

Indo Farm Equipment IPO Listing Date and Allotment Details: The allotment of shares in Indo Farm Equipment IPO will be scheduled on Friday, January 3. The company plans to start the refund process on Monday, January 6, and the shares will be credited to the demat accounts of allottees on the same day. Refund. Shares of Indo Farm Equipment are expected to be officially listed on BSE and NSE on Tuesday, January 7.

Lead Managers and Registrars of Indo Farm Equipment IPO: Aryaman Financial Services Ltd acts as the book running lead manager for the Indo Farm Equipment IPO, while Mass Services Ltd is the registrar handling the issue.

Indo Farm Equipment IPO Reservation: The company has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIBs), not less than 15% for non-institutional institutional investors (NIIs), and not less than 35% of the offer. For retail investors.

Indo Farm Equipment IPO GMP Today: Indo Farm Equipment IPO gray market premium It is +90. This indicates that the Indo Farm Equipment share price was trading at a premium. 90 in the gray market, according to InvestorGain.com.

Considering the upper end of the IPO price band and the existing premium in the gray market, the estimated listing price of Indo Farm Equipment share price was indicated Rs 305 per share, which is 41.86% higher than the IPO price 215.

After gray market activities in the last 18 sessions, today’s IPO GMP is showing an upward trend and a strong listing is expected. Minimum GMP has been recorded 0, while the maximum GMP is According to experts at InvestorGain.com, 90.

The ‘grey market premium’ refers to the willingness of investors to pay more than the issue price.

Disclaimer: The views and recommendations given in this article are those of the individual analysts. These do not represent the views of the Mint. We advise investors to check with certified experts before taking any investment decision.