Indo Farm Equipment Limited IPO - GMP & Subscription

Indo Farm Equipment Limited IPO provides an interesting opportunity to investors. With a strong legacy in agricultural and construction machinery the IPO has created a lot of interest in the financial market.

Company Overview

Indo Farm Equipment Limited is a leading player in the agriculture equipment sector. As per company website it is a “leading manufacturer of world-class Agriculture Tractors, Cranes, and various other agricultural Implements”. The company commenced its manufacturing operations in the 2000, and has currently installed capacity of 18,000 tractors, 2,400 cranes, and 20,000 engines per annum. In terms of innovation and customer-centric solutions, Indo Farm Equipment has been gradually growing its presence in both the domestic and international markets.

Sector Analysis

The Indian agricultural equipment sector is experiencing significant growth due to increasing mechanization of the agricultural sector, additionally the government has been supportive of the agriculture sector. With increasing demand for efficient machinery, positive policies, and subsidies, the Indian agriculture equipment sector looks promising.

Objectives of the IPO

The proceeds from the IPO will be used for the following purposes:

Manufacturing facility expansion to meet the increasing demand.
Investment in research and development to innovate and enhance product offerings.
Debt reduction to strengthen the balance sheet.
General corporate purposes to support operational growth.

Indo Farm Equipment Limited IPO details

IPO Name	Indo Farm Equipment
Issue Type	Fresh Issue & OFS
IPO Open Date	December 31, 2024
IPO Close Date	January 02, 2024
Price Band	₹204 to ₹215 per share
Lot Size	69 shares per lot
Retail Investors Min lot and Amount	1 lot & ₹14,835
Retail Investors Max lot and Amount	13 lots & ₹1,92,855
Small HNI Min lot and Amount	14 lots & ₹2,07,690
Small HNI Max lot and Amount	67 lots & ₹9,93,945
Big HNI Min lot and Amount	68 lots & ₹10,08,780
Issue Size	260.15 crores
Basis of Allotment	January 3, 2025
Listing Date	January 7, 2025
Listing Exchange	NSE & BSE
Retail Individual Investors (RII) Quota	35%
Non – Institutional Investors (NII/HNI) Quota	50%
HNI/NII	15%

Financials of the Company

Key highlights of Indo Farm Equipment Limited’s financial performance:

Revenue: The company reported revenues of INR 375.95 crore in FY2024, a slight increase from INR 371.82 crore in FY2023, indicating a growth of approximately 1%.
Profit After Tax (PAT): PAT for FY2024 stood at INR 15.6 crore, marginally up from INR 15.37 crore in FY2023, reflecting a growth of about 1%.

Key Financial Ratios

Net Worth: Increased from INR 290.37 crore in FY2023 to INR 342.25 crore as of June 2024.
Total Borrowings: Reduced from INR 280.65 crore in FY2023 to INR 245.36 crore as of June 2024.
Debt-to-Equity Ratio:01, indicating minimal leverage and a strong financial position.
Return on Capital Employed (ROCE):96%, reflecting efficient use of capital to generate returns.
Return on Equity (ROE):13%, showcasing steady value creation for shareholders.

Risk Factors

Sectoral Dependence: The major chunk of revenues is generated through the agricultural sector, which is highly sensitive to monsoon and other climatic conditions.
Raw Material Costs: Raw material prices might be volatile and impact profitability.
Market Competition: High competition from both established and new players in the domestic as well as international markets.
Global Economic Factors: Since the company is exposed to international markets, it is vulnerable to currency fluctuations and geopolitical risks.

Indo Farm Equipment Limited IPO Subscription Status

On the 3rd day, January 02, 2025, the IPO has been subscribed 229.31 times overall. In the retail category, the IPO is subscribed 104.92 times, NII Category 503.83 times, and 242.20 times in the QIB category.